Perspective on buying a flat by leveraging investments overseas

[Mike Silva]

Hello everyone!

I live in Spain on a rental property. Currently considering if it's worth buying a flat here by leveraging my property and investments overseas. Some extra information:

Variables:

- Brazil: 70,000BRL savings + 350,000 flat (currently on sale. Could make 2,000/mo 0.5% in rental)

— Scenario #1 Sale. Invest 420,000BRL: Income ~800€

— Scenario #2 Rent Invest 70,000 + Rental money (130€+450€). Income 580€

- Interest/Investments BR: Around 10-12% a year for investments.

- Interest/Mortgage ES: Money is cheap here - mortgage 2.5-4% a year.

- Downpayment/Mortgage Spain: ~32% (12% taxes + 20% downpayment), so 60,000€ (checking how this % can be lowered)

- Spain: Rent ~800-1000€/mo, Mortgage 600-700€/mo for a target flat price of 200,000€

- Exchange rate: 1 EUR = 4.35 BRL

My priorities:

- I’m an entrepreneur and love the freedom of it. Currently making enough money just to get by, not to save.

- I’m working on projects that, hopefully, will bring new streams of income in 1-2 years.

- I’m passionate about the idea of financial independence and the possibility it gives to work on my projects. However might consider getting a job to boost to my Spanish savings, if necessary.

- Mom is getting older. As the only-child we’re planning her move Spain so I can make sure she will enjoy her next 10 years ;) She has savings to start a loan here. We’re considering a shared property, with individual units (i.e. container homes - numbers not covered here, but would be way cheaper, like 70% less but checking local permits) or getting each one a flat.

- Not really comfortable with getting a 30 years mortgage as this could severely impact my freedom (my first flat was purchased 100% in cash, upfront). Loving the idea of house hacking to minimize that.

What would you do? Would be great to have some new perspectives on it. Suggestions greatly appreciated.

Thanks a lot!