Sunday, April 3, 2022

....and it's gone!

Well it's finally a done deal...we now no longer own a property in these here United States!! Our only USA rental property is gone and now safely with it's new owner. The adjacent pic is of Mrs DD4L sipping a celebratory Peroni in downtown Savannah for a job well done. She worked very hard getting the place ready to sell so all credit to her.

Must admit I was very apprehensive all the way through the selling process this time around, the overheads in this country are getting way out of hand, really not long term FIRE-friendly at all. So it really HAD to go, have to say the future looked pretty bleak owning the property. Not to mention the interest rates are on the rise so we expect a gradual slowdown in the market, did I say it HAD to go?

Fact is every time a property in the area sells for an ever-higher price you know for a fact your property taxes, city taxes and home insurance are going to ever-increase in lockstep as ours have done for the past few months. To keep it as a rental would mean keeping upping the rent also in lockstep but you can only do that so much to a point the house is too expensive to rent let alone own. 

But when does all the craziness end? 

Well from our perspective it ended with us selling the thing to be fair.

But anyways the house is gone. Yay!! Happy happy.

And to be honest we're both very relieved to cash out and return to apartment living in these here United States. We happily signed ourselves in for an 8 month lease (per the last blog post 14th Dec finish date) the monthly payment does sting a little at $1450 a month but it's only until Dec 14th and then back to Cowes and mortgage-free living.

The apartment is pretty sweet though, feels good because it reminds us of being back on the road in Asia with the treadmills in the gym looking out onto the swimming pool. Could we have got a cheaper apartment? Yes, most definitely. Would we have wanted that cheaper apartment? Most certainly not. Yikes.

The whole existence now feels so much more temporary too, like a large anvil has been removed from our shoulders. Bliss.

So from now until Dec 14th we just save, save and save some more pretty much the same as any other folks heading for retirement. That and get back to hitting the onsite gym as much as possible.

On the subject of saving we're now trying our best to optimize our savings rate as much as humanly possible. Every moment working has to go straight to savings, zero wastage, maximum efficiency.

This is done by allowing our US dividends to do all the heavy lifting. Yes the rent of $1450 does sting but not when dividends are paying it, same with the all the utilities...gas? elec? water? trash all covered by wonderful dividends from the brokerage. We have lost the rent from the USA house but the remaining bills are still easily covered here so all is good.

In fact all we need to cover are our groceries at about $100 per week, not a Ramen noodle diet but still very much covered by the local Aldi in Pooler. The remainder of the wage goes to savings..

The power of dividends. One of the many reasons we love them so much.

On that very same subject..

True to the Federal Reserve threat the interest rates have increased and are are set to increase at a faster rate of knots over the next few quarters.

With that comes opportunity in the Preferreds market, as interest rates rise the value of Preferred shares decreases accordingly. Exciting times indeed.

Truth be told we've been sitting on the sidelines for about 2 years now ever since our Covid March Madness 2020 buying spree, just letting the cash accrue. 

Timing the market? Well yes but we didn't really see any other option, the whole market just looks pumped up on steroids and has done for months. So much so we can't be bothered playing the game anymore, content to just take the dividends from what we already have.

So we just sit and wait patiently on the bargains from here, hopefully by the last quarter we should start to see the buying opportunities. The Arbor Realty (ABR) preferreds are already starting to see some excellent price drops so we're starting to buy up in very small bite/nibble size amounts.

So fun times ahead, now that the house is gone we're free to get on with Preferred investing.

Long all ABR Preferreds.

Love to all,

DD4L

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