Is Real Estate Still a Viable Passive Income Stream for FIRE?

Real Estate Investment and Finance
1

I earn £20k gross from five EU flats but due to high taxes and upkeep, my net income is minimal. Would transitioning to stocks be a better FIRE strategy?

2

hey, i think stickin to property can still work if u manage costs well, though stocks r tempting for tax reasons. both have their hurts so maybe try mixin a bit of each, dependin on how much risk u wanna shoulder, ya know?

3

Interesting perspective, Ella_85Puzzle. Have you thought about optimizing your management strategy to reduce upkeep costs? Maybe exploring REITs could balance your property benefits with stock-like liquidity. What’s your take on mixing hands-on management with more passive investments?

4

Real estate can still be a valid option for FIRE, but my experience has shown that it demands careful management of costs and ongoing upkeep. Although the steady cash flow from rental properties is appealing, unexpected expenses and high tax rates may shrink net profits significantly. On the other hand, stocks can offer better liquidity and potentially lower maintenance, yet carry their own set of market risks. Transitioning completely may not always be optimal; a hybrid approach could balance stability with growth, based on your risk profile and personal circumstances.

5

Hey Ella_85Puzzle, your situation really piques my interest. Have you thought about balancing both approaches? Stocks might provide better tax treatments, but risk is higher. What’s your comfort level with market swings?

6

Investing in real estate for FIRE is still viable, but it requires active oversight which may not suit everyone’s risk tolerance or lifestyle. In my experience, diversification can help balance the hands-on effort needed in property management with the benefits of more passive stock investments. Transitioning completely to stocks might reduce issues such as upkeep and taxes, yet you’ll be exposed to market volatility and less predictable dividend income. It is worth deeply evaluating which factors you are willing to manage directly versus those you’d prefer to automate through rebalancing.