Moving to another city or continent is challenging. Making that move in your 40s is near impossible. You are consumed with succeeding in your life after you make that move. The last thing on your mind is something as sensational as early retirement.
However, the truth is, there are certain professions that can give you the opportunity for early retirement. Real estate is certainly one of them.
Having been ‘retired’ for a few years now, I wanted to share some thoughts on how real estate helped me retire early.
Why Real Estate Is A Perfect Vehicle for Early Retirement
Let’s get the obvious answer out of the way. Commissions.
A career in real estate is an excellent source of wealth creation because of its method of rewarding agents. Real estate representatives are not constrained by hours in the day, but instead by their ability to generate successful outcomes. Taking a cut of the final sales price means that you are likely better off than any comparable salaried position. Not to mention that you are not constrained by the number of homes you sell only makes this offer more enticing.
Now back to reality. Selling homes is difficult. There may be countless hours or procurement and marketing efforts that may amount to nothing. Further, regardless of your skills or experience, you will no doubt fall victim to a down market.
So while your return is higher under a commission arrangement compared to a salaried position, you have considerably more exposure. However, over time, and with perseverance and consistency, a career in real estate can yield an above average return than a traditional position.
I enjoyed a successful real estate career. While luck played a part (notably a prolonged up market), I can confidently say that my determination and tenacity were key to my success.
Why I Chose To Retire Early
I retired in my mid-50s, which is over a decade before the traditional retirement age. I could have certainly made it through a few more innings. However, I was due for a sea change.
I’ve been a salesman my entire life. Whether it is real estate, or telecommunications or medical devices, my calling has always been in sales. In each of these industries, I’ve endeavoured to work my way up from the ground floor, learn the product inside out, and establish a firm footing in the market.
After working for over 15 years in real estate, I was able to tick those boxes. Now I could have restarted in a new field, in search of a new challenge. However, I had a long and enjoyable career, earned an above average salary, and put together a strong foundation for passive investment. In summary, I was content.
On the topic of passive investment, it was because of my real estate career that I was able to build my real estate portfolio, mainly from my earnings. I’ve also been able to rely on my knowledge, my learnings and connections from my career, to aid me in managing my portfolio. So even though I retired, my real estate career continues to help me.
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I must say that I’ve taken to retirement like a fish to water. However, the tools gained from my real estate career made it much easier.
The content outlined above was written, edited and published by the Lost Realtor. The author has over 20 years or real estate sales and investing experience in the Australian property market. He has held senior positions in Australian building companies, including being the General Manager of the residential sales division of Collier Homes. His qualifications include a Bachelor of Commerce degree and a Graduate Diploma in Building and Construction Law.