properties

At one point, I owned seven rental properties. Today, I’m down to just one (and I’m getting ready to sell it soon).

No more tenants, no more maintenance calls, and no more juggling spreadsheets and 5,000 receipts at tax time… I’m moving all my money into one low-cost index fund strategy that’s easier to manage and way less stressful.

I’m not saying real estate isn’t a good wealth-building tool. It’s worked out well for me.

But I learned (the hard way) that passive income isn’t always passive. Here’s the backstory and my plans moving forward.

What drew me to real estate in the first place

Fresh out of high school, I was eager to build a real estate empire.

My original plan was to buy 10 solid rental properties, each cash flowing around $1,000 per month. That would give me a cool $10,000 per month in income — enough to retire early and live life on my terms.

And honestly, as vague as that plan was, it made a lot of sense at the time.

I worked hard to save up down payments, slowly bought properties, and actually enjoyed the process (mostly).

Not every property I bought was a slam dunk. But I definitely found and experienced many of the benefits I was chasing. I built equity, earned decent cashflow, and took advantage of real estate tax perks.

But eventually, the cracks started to show.

The downside nobody warns you about

If you’ve ever owned rentals, you know: the spreadsheets don’t tell the full ownership story.

They don’t show leaks under the kitchen sink. Or the three-month turnover delay because your contractors ghosted you. Or the multiple tenants who stopped paying right after moving in.

Some properties ran fine for many years. Then in a single 12-month period all of the profits would get wiped out by a perfect storm of emergencies.

True story — I had this one rental that was amazing for three years straight. I always got paid on time, and never heard a peep from the tenant… Then one day out of the blue I got a phone call from a lawyer. Turns out my tenant was a “lady of the night,” using my apartment as a place of business for illegal services.

Property managers helped me manage everything. But they are costly. And at the end of the day, the responsibility always falls on the owner.

With each place I bought, my stress grew. Even when things were going well, there was always a low-grade sense of stress in the background.

My new strategy: Index funds

I made it up to seven rentals, then I decided maybe I was climbing a ladder I didn’t want to be at the top of.

So I’ve been slowly exiting real estate ever since — selling one place at a time. I began with the trouble-maker properties first, keeping the higher performers longer. And now I’m down to just one single property left.

In my early 30s, I stumbled into index investing. It was something I hadn’t taken seriously before. I’d always known what index funds were (wide market exposure, low fees, blah blah blah). But I didn’t realize how freeing they could feel until I actually tried it.

I’ve now moved most of my money into a total stock market index fund. And it’s been one of the best financial decisions I’ve made.

I use Fidelity as my main broker. And I’ve been with them for over a decade now. Between my personal accounts, retirement funds, and custodial accounts for my kid and nephews, I’ve got 11 accounts with Fidelity… and I pay $0 in fees. Read my full gushing review of Fidelity here, all about why I’m a big fan.

Passive income that’s actually passive

I now keep most of my investments in total market index funds like FZROX (Fidelity ZERO Total Market Index Fund) and VTI (Vanguard Total Stock Market ETF).

These funds own thousands of companies across nearly every sector. I don’t pick individual stocks or worry about trying to outperform. Average returns are fine with me.

And the best part is, I don’t have to manage anything. It’s truly passive.

Here’s why I’m a big believer in index funds:

• Built in diversification — I’m invested across all industries, and own pieces of all the big and small publicly traded companies out there.
• Liquidity when I need it — I can sell just a small slice of my index funds at any time, unlike real estate where I’d have to offload an entire property just to access cash.
• Low fees — FZROX literally has a 0.00% expense ratio, so I love that fund. But most index funds have a tiny expense ratio compared to managed funds. Also most brokers have no trade fees when you buy or sell.
• Hands-off — The only thing I have to do is not mess with it.
• Strong historical returns — Large index funds like the S&P 500 have averaged ~10% annually over their long history.
• Mental clarity — I don’t get wrapped up in the headlines or have to think about my investments daily.

Even during the COVID-19 pandemic when my index funds were down 30%-40%, I was actually stressing about my rental properties more than I was about the stock market.

Thankfully, both rebounded after 2020. But that experience reinforced something big:

I’d rather hold an asset that can drop 40% without me having to lift a finger, than one that drops 10% and demands all my attention (or seven that demand attention).

Onwards and upwards

Seven rentals taught me a lot. But once I shifted my mindset away from “owning stuff” and toward growing wealth simply, index funds just made more sense.

I’ve reclaimed my time, simplified my financial life, and stopped managing my investments — and finally started enjoying what they’re doing for me.

It’s not too late to switch strategies, simplify your approach, or start fresh. Index funds are a great place to begin.

Check out our favorite online brokers and trading platforms for index investing (and more) — with low fees, no account minimums, and no stress.

The average price of a house in this seaside town is much lower than the national average, making it a property hotspot for Brits looking to live by the coast

Seaside living remains a cherished aspiration for many people who dream of leisurely strolls along the beach after a hard day at work. Yet for many, this remains nothing more than a tantalising fantasy that stays frustratingly beyond their grasp.

Northumberland’s Newbiggin-By-The-Sea certainly seems to be riding a wave of popularity at the moment – and if house hunters leave it much longer they might just be priced out. The most affordable property currently advertised on Rightmove within the North East town is a three-bed end of terrace property on Lynwood Avenue, listed for auction with a guide price of £40,000. Meanwhile, another three-bedroom house on the same street is listed for sale at £69,950. Whether you’re planning a move or just curious about local property prices, our interactive map shows the house prices in each area of the country.

The typical selling price in the town stands at merely £129,063, which represents considerably less than half Britain’s average property cost of £282,000, according to statistics from last year, as per the Express. Lawrence Jones works as a refuse collector for Newcastle City Council and became enchanted with the town four years ago. He lives with his wife Michelle Jones, having moved from Shiremoor.

He said: “We sold our house and the idea was to move to Durham – but Newbiggin was the only place we could get a rental. Twenty years ago I wouldn’t have been impressed as it was a little bit rough.”

However, Lawrence now treasures his new residence so deeply that within three months of arriving, he purchased a property which he claims has rocketed in value. He added: “You walk along the promenade and everybody speaks to you. It is so friendly.”

Ian and Sally Boot are from Nottingham and were in Newbiggin for the day, visiting their son who lives in nearby Blyth. Both agree if their daughter was to also move to the area they’d take the plunge in a flash. Retired engineer Ian said: “I think it’s nice – there’s free parking, a new cafe and it’s nice up the coast in Amble and Bamburgh. Retired civil servant Sally said: “It’s quiet and that’s why we have come today. We thought we would have a quiet day and it’s nice and peaceful.

Marion Longstaff, has run business Pretty Things By The Sea since 2018 after relocating from Windermere in the Lakes. She said: “It is still cheaper than the prices in Amble – it’s a hidden gem. Southerners are definitely taking an interest. After lockdown they were coming up for a break – one couple [I met] came up for a long weekend and fell in love. They sold up their property but haven’t found a property they want here yet as they were gazumped.”

Marion says she will never leave the little seaside enclave and says the coastline is “just my medicine. ” Fellow local business owner Annie, a former mechanical engineer, originally from Manchester, has lived in the town for 35 years. She said: “I just like village life and everybody knows everybody. Everybody is very, very friendly. People come on holiday and then they love it here.”

Andy Brown runs Jackson’s Jewellers and More on the main shopping stretch which is packed with independent shops. He said: “I think the village itself has evolved and people should take note. There is a large variety of shops, all independent, as the rents and rates are all reasonable. The place is also kept as clean as a whistle and the people are beautiful.”

Andy said a few decades ago the area was perceived as “rough” but it “always had massive potential” that is finally being realised. Dawn Duddridge, a sales negotiator at local estate agent Rickard, says the market in Newbiggin is booming.

She said: “Properties there don’t hang around much, especially on the seafront. “”Often people who have been here on holiday come up from the south and buy a house outright – and have still got a decent amount in the bank.”

Elliott made 18 league appearances under Arne Slot last season, but his only two starts came against Chelsea and Brighton, when Liverpool had already won the league.

That was in stark contrast to the previous season, with 11 starts in 34 league games for the Reds in Jurgen Klopp’s final campaign.

Elliott has made 147 appearances, scoring 15 goals, in his six years at Liverpool since joining from Fulham as a teenager, with a season on loan at Blackburn in 2020-21.

England Under-21 boss Carsley has only seen Elliott’s desire to succeed this summer.

“I’ve not seen a lot of the frustration,” he added. “What I have seen is someone who’s determined to play and to get the minutes. He wants to play every game and all of the minutes.

“He’s definitely built into the tournament. Not getting as much game time towards the end of the season, we’ve had to manage his minutes in terms of the amount he’s played and the intensity he plays at because he’s so explosive with the way he moves and his end product.

“We’re very lucky to have him.”

Brighton have been linked with a move for Elliott, as have former club Fulham, and while Wolves have been mentioned they have already signed Spaniard Fer Lopez and any fee is likely to be too high for the Molineux outfit.

Former Liverpool defender Stephen Warnock, part of BBC 5 Live’s commentary team in Slovakia, believes Elliott has done well to ignore talk about his future and impress at the Euros.

“There’s a lot of speculation about ‘will he be at Liverpool next year?’,” said Warnock, who made 67 appearances after coming through the youth ranks at Anfield.

“That’s not easy. There will be phone calls with his agent about who’s talking, where are we looking at going and what are the potential avenues, am I going to stay at Liverpool? It’s very much a rollercoaster as the tournament goes on.

“Because of the amount of games he has played for Liverpool, and the impact he had coming in, I think we all thought he would catapult and play for a long time in the first team.

“But he has a World Cup winner in Alexis Mac Allister in front of him, [Ryan] Gravenberch had an unbelievable season and [Dominik] Szoboszlai was brought in for big money.

“He has responded well in this tournament. Mo Salah talks about moments in games and Harvey Elliott is one of those players for the moment. When the moment presents itself he is calm and composed.”