One thing that does provide a possible hedge is if you receive/hold Swiss francs, assuming the franc continues to hold its value. In Hungary, for example, prices in Forints have certainly gone up in recent years, but so has the Swiss franc vs. the Forint.
From what I’ve seen, that benefit is less pronounced in countries that use the euro.
I guess that’s typical for regions where owning is the norm. Rent prices are high compared to property prices because rents are mainly used short term for truism. However this rapport says the property prices are steadily rising so at some point people might start renting long term
That’s one of the things, world is dynamic, Europe in particular. At some point the regions giving the most opportunities saturate still being the most expensive but not giving good opportunities anymore so people slowly start moving to cheaper locations elevating the growth of these. Look at Portugal. Also investors became active once they see the realistic growth opportunity.
My wealth is at 1M, which increased rapidly in recent years thanks to my work in Zurich. I’m working hard for the bucks, but honestly not particularly harder than before. For the past 20 years I’ve been holding top paying IT jobs (of each region where I was), though the current one leaves 4-5 times more in my pocket each year than the previous.
Honestly I missed a lot investment opportunities, because I just didn’t have time for this. At current age I’m rather leaning to stay away from risk. I’m rather interested in retirement planing. I’m single so I don’t think of leaving anything for heirs. The what if scenario of this thread just came to my mind one morning: let’s see if I can already live off my wealth with very conservative scenario, half to setup my nest, half to finance the retirement. 500k gives 40 years at 1k ratio. Obviously it’ll last longer, with any minimum but safe investment, plus I’ll get “some” retirement. I should have earned something like 300/m AVS already, plus some peanuts from previous places (most of the time I was using self employment scheme).
I’m aware that my current work might not last long. Layoffs happened recently and I bet that’s not the end of it. On the other hand, I have no life besides work. The sweet spot is not about getting rich, but about careful planning. I’d like to retire and enjoy my life till I can get the most of it. However I don’t want to quit just because I could start living as investor. On retirement I’d like to stop bothering about money, it doesn’t have to be much, but should be off my mind. You get the idea.
It surprised me but I may be already on the sweet spot, the right timing. Obviously with every year at work the scenario gets only better as my wealth grows faster than the inflation of the cheaper zones.