I wanted to propose an investment case analysis. I don’t have enough FIRE-minded friends so decided to post it here.
→ 40k EUR
→ Ability to get a mortgage at investment country with 90% financing. (10k as transaction costs is usual; financing is at around 1% + 3 months Euribor, so 0,48% at the moment)
→ Mid Twenties, stable job, not married
→ Risk profile: Aggressive (comfortable with 95% stocks portfolio)
Option 1: Buy a 200,000€ Flat generating 750€ per month in gross rent.
Required Cash: 20,000€ for downpayment + 10,000€ for transaction costs.
Further 10,000€ would be converted to USD and invested in VT.
Option 2: Convert full amount to USD and invest in VT.
Looking forward to understanding your thought process!