Robert (@Iwant_money_423) on getquin

How I restructured my portfolio by selling shares to buy a property -. And why I found it so difficult.

1.) Foreword

Hello friends,

we as a family cherished a long-standing desire to own our own home that would provide security, stability and a long-term investment in the future.

For many investors, the purchase of a property represents a significant milestone, often involving the need for a substantial financial investment. In my personal case, I recently purchased a property and decided to sell half of my total portfolio to provide the necessary capital.

This decision was significant and I would like to share my experience on how I strategically restructured my portfolio to achieve my financial goals.

2.) The "strategic" sale

The decision to liquidate a significant portion of my equity portfolio was by no means taken lightly. Despite the positive performance of my stock portfolio and, in the meantime, steady distributions I had received over the past year, I realized that acquiring real estate would be an excellent diversification of my assets and could provide long-term stability (even with 3.7% interest).

Portfolio Diversification: However, selling a significant portion of my stock portfolio was not a spontaneous & easy decision. Ultimately, selling a portion of my equity portfolio to purchase real estate was an important step towards a diversified and balanced asset structure.

Diversifying the income stream: Real estate investing can provide a diversified income stream, especially through rental income. This can help diversify my income portfolio and reduce the risk of income loss if the stock market is volatile.

Expected Returns: A real estate investment can provide a stable long-term return, especially through rental income and potential appreciation. I am convinced that the return from real estate investment will be higher than the return from stocks held in the long run.

3.) The emotional attachment...

...that I have built to my successful investments.

At first, I felt the sale of my shares as a kind of capitulation, especially because these investments had generated "substantial" profits over a long period of time.

When certain stocks or assets have produced solid returns over time, there can be a strong attachment to those gains that just makes it difficult to part with them.

I quickly developed the feeling that I was giving up some of my financial success to invest in something new, which created uncertainty or discomfort.

4) Potential missed opportunities?

We might be concerned that by selling our shares we might miss future return opportunities, especially if the market continues to show positive trends. All the easier I found it currently ;-)

I think it's important to recognize that selling a portion of the portfolio to fund a significant investment like buying a property can be part of a long-term financial strategy. Although it may initially feel like a loss, it's important to remember that diversifying your assets and investing in real estate can also provide long-term stability and a tremendous potential return.

5.) Personal words

It's an incredible feeling to finally own a home that I can realize my potential in and that offers me long-term stability. The idea of soon living rent-free gives me a sense of freedom and security.

However, this is just the beginning of my journey. My goal is to acquire one more property in the future to expand my portfolio. It's fascinating to see my dreams of financial independence and long-term investing slowly coming to fruition. I can't wait to continue on this path and explore new opportunities.

6.) The real estate

We bought a condominium with 4 rooms and an area of 100 m² near Hamburg. In order to finance the purchase, we took out a loan in the amount of 130,000€, while we financed the remaining amount ourselves. The interest rate of the loan is 3.7%. Over a period of 10 years, we plan to make a special repayment of 5,000€ each year to pay off the loan faster. This will allow us to be rent-free at the end of the 10 years.

Currently I am only invested in the $VWRL Whether it will stay that way? Probably not :D

However, I will continue to invest 15.000€ per year in the $VWRL invest. This will allow me to potentially benefit from the returns of the global stock market in the long term and further expand our assets.

7.) Note

Finally, I would like to emphasize that every investment decision is based on individual goals and circumstances. should be based on individual goals and circumstances. It is advisable to seek professional advice when making significant changes to the portfolio, or at least a second and third opinion once, to ensure that decisions are made on a sound basis.

Thanks for reading.

#etfs
#immobilien
#aktien
#rendite
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Thomas@DonkeyKongx

6Mon

"And someday your home is no longer in 4 walls, but in two eyes and one heart" I wish you all the best and the important thing is that you feel comfortable with this decision. Only the best for the future ❤️‍🔥🤝💯

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DonkeyInvestor@DonkeyInvestor

Thank you for your presentation and congratulations on the further diversification of your portfolio 👍. However, I doubt that your property will beat the stock market in the long run and give more return. Of course, still a very good decision, especially since it is your desire to live in your own property

Andre@DivGrowth1989

I have taken the same step and can therefore understand your thoughts very well. For me, however, it was a vacation home, which we rent out to vacation guests since this year....when I compare my previous dividend income with the rental income, there are worlds between....also minus the costs. On the other hand, there is always a certain pressure and uncertainty... Best regards and all a nice long weekend ✌️👌

Seventrader@7Trader

Hello Robert, first of all I congratulate you on buying your apartment. If that was the big wish of your own family, then you are doing everything right to be happy. Your way is not untypical, because young families want to own their own home with a hopefully stable future. Personally, I think another way is better: build up a real estate asset, which you exclusively rent out. First the tenants pay off the loan, and over time they finance your own rent. Depending on the location, you will have to add something to the loan in the beginning. For example, I sometimes like to buy two apartments in one project, which are rented out immediately. After 3-5 years, I sell one of them at a profit and cover a large part of the loan. As a tenant, I am much more flexible, can make changes at short notice, have lower maintenance costs, and have a higher credit rating with the bank to buy more investment properties. Once the cycle is in motion, the portfolio builds up on its own.

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TomTurboInvest@TomTurboInvest

Congratulations 👍 We did the same thing in 2004, built a house for ourselves, looking back that was the first step to financial independence. We also had a short financing term due to unscheduled repayments. Ie once the loan is paid off, you have relatively low fixed costs. That alone offers a certain freedom. Meanwhile, we also have investorimmos that pay off themselves and then either sweeten us the pension, and / or give us the opportunity to also give our children an easier start. Have the invest never regretted, the value increases considered still one of my best investments, not to speak of the quality of life.

SGP@Koenigmidas

Very cool and congratulations at the point I was also 2021 and have not regretted it👌

Drachen@Drachen

congratulations on your positive liabilities :)

Daxdaniel@Daxdaniel

Congratulations on buying a house, but I would also mention that if you expect a higher return from buying real estate than from stocks, then either the real estate must be an extreme stroke of luck or the stocks must be performing extraordinarily badly. In terms of returns, stocks are usually much superior to real estate.

Moritz@leveragegrinding

That was random Insane good timing 🙃

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Roland 🐾@rolandwenzel4l

We did it like this regarding shares and real estate: We did not sell our deposit for a real estate, but only paid the incidental costs ourselves and financed the real estate at 100%. (Fortunately, more than a year ago - and thus at about 1% interest rate). We continue to invest in shares and have chosen the monthly rate of the Immo so that this meets approximately the rent index of the place. Special repayments we plan only for the depot :) Thus we try to dance quasi on two weddings - the rent we would have to pay so and so and we manage to invest nevertheless every month in the middle 3-digit range. The deposit still has about 25 years to grow (until retirement) - and the real estate is also planned to be paid off by then. Cost-free living with paid off real estate all well and good, but my thought is that, rather now as much as possible to invest in shares, so that the pot allows the "free" living in about 15 to 20 years and then but still every year money yields. In addition, we still BAV, private pension insurance (4% return) and private LV via funds, which we can also control and thus an enspannten pension with possible trips and enough freedom hopefully nothing stands in the way :) Who has done it similarly?

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