Retire in Armenia... revisited...
A few years ago, I wrote in detail how easy it would be to retire in Armenia for a relatively small amount of money. The basis of that explanation involved buying then-cheap real estate to rent out for a steady, generous income, as well as a place to live for yourself in Armenia, rent free.
Times have changed in that real estate in Yerevan has exploded in price. That however has come during a corresponding explosion of prices in the west, so the idea is still quite valid for many, the numbers have just changed.
If you have property in the US, Europe or Australia, odds are that the value has gone up in double digits for years now. The equity in the property, has therefore mushroomed as well. I believe that the American market is pretty much ready to take a complete dive as interest rates rise and make all of the current prices impossibly unrealistic. Meanwhile, though prices have also gone up a great deal in Yerevan, and I believe they will adjust as well - though for different reasons (an lot of new housing hitting the market soon), I still think that those who can get a few hundred thousand dollars of equity out of their real estate in the US can easily retire in Armenia immediately. Depending on how much income you want per month, you'd need a different starting sum to retire on. A very rough and safe calculation would be that for every $1,000 a month you want in income per month, you should purchase $120,000 worth of real estate. So for example, you could purchase $240,000 worth of real estate to generate $2,000/month of income in Armenia, plus throw in $60,000 for a modest one-bedroom place to live in yourself in central Yerevan. So for a grand total of $300,000 - you will be living extremely well, rent free, and generating enough income for a couple to live comfortably and do some travel as well...
Or you can watch housing prices collapse in the west and keep on working... :-)
Times have changed in that real estate in Yerevan has exploded in price. That however has come during a corresponding explosion of prices in the west, so the idea is still quite valid for many, the numbers have just changed.
If you have property in the US, Europe or Australia, odds are that the value has gone up in double digits for years now. The equity in the property, has therefore mushroomed as well. I believe that the American market is pretty much ready to take a complete dive as interest rates rise and make all of the current prices impossibly unrealistic. Meanwhile, though prices have also gone up a great deal in Yerevan, and I believe they will adjust as well - though for different reasons (an lot of new housing hitting the market soon), I still think that those who can get a few hundred thousand dollars of equity out of their real estate in the US can easily retire in Armenia immediately. Depending on how much income you want per month, you'd need a different starting sum to retire on. A very rough and safe calculation would be that for every $1,000 a month you want in income per month, you should purchase $120,000 worth of real estate. So for example, you could purchase $240,000 worth of real estate to generate $2,000/month of income in Armenia, plus throw in $60,000 for a modest one-bedroom place to live in yourself in central Yerevan. So for a grand total of $300,000 - you will be living extremely well, rent free, and generating enough income for a couple to live comfortably and do some travel as well...
Or you can watch housing prices collapse in the west and keep on working... :-)
posted by Raffi K. at 4:56 PM
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