At 24-years-old, Oliver Russell faced a financial reality that many young Americans can relate to — skyrocketing home prices were well beyond his reach, especially in his home state of California.
Instead of settling for high down payments and rising mortgage rates stateside, Russell made an unexpected choice: he bought a 2.5-acre off-grid island in Finland for just $31,000. But, given that Russell is half-Finnish and he spent his childhood summers there, Russell’s choice wasn’t completely unorthodox.
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“It was less than a home deposit,” Russell recently told the New York Post, emphasizing the affordability of his unconventional purchase.
Initially browsing real estate sites for fun, Russell stumbled upon the island, and now he and his girlfriend are embracing the off-grid lifestyle. Their project began with a tent and an outhouse, with ambitious long-term plans for a log cabin and sauna.
With U.S. median down payments hitting $64,000 in June and mortgage rates hovering around 6.6%, Russell’s investment strategy offers a refreshing take on how to enter the real estate market without breaking the bank.
Cheaper real estate
After spending most of his life in Laguna Beach, California, an area known for its expensive real estate, Russell moved to Fort Collins, Colorado, in 2020.
However, when plans to secure affordable tuition for school fell through, Russell made an unexpected pivot, moving to Helsinki, Finland, where he found a creative solution to dodging the rising costs of the U.S. housing market.
Instead of battling California’s escalating cost of living — where the median home price has surged to $773,363, reflecting a 5.1% increase over the past year, according to Zillow — Russell purchased a whole island.
When the couple bought the property, they took on more than just land — they committed to a full DIY transformation. Starting with untouched wilderness, they began building a livable space from scratch, using natural resources to keep infrastructure costs low.
“The island is completely secluded, has no electricity or plumbing and currently has nothing on it but trees,” Russell shared in a video on his YouTube account.
While owning a private island might not be for everyone, it proved to be a far more cost-effective option, allowing him to sidestep California’s competitive market and embrace a more adventurous, financially sustainable lifestyle.
Read More: Feeling broke on a $665K salary: This surgeon and his wife didn’t realize their financial adviser may have been charging a high fee until Ramit Sethi set things straight
Affordable alternatives to US real estate
For those not interested in taking on an off-grid project, there are still ways to gain exposure to the real estate market without the responsibilities of direct property ownership.
Real Estate Investment Trusts (REITs) offer investors a chance to participate in the real estate sector through the stock market, providing returns without the need for a large down payment or managing a property.
Similarly, crowdfunding platforms allow investors to pool their resources, and give individuals access to larger real estate projects with minimal upfront capital. These platforms offer access to a wide range of investment opportunities, making it possible to diversify across multiple investments with as little as $100.
Both options serve as accessible, low-barrier alternatives for those seeking to expand their portfolios through real estate while mitigating the challenge of traditional homeownership.
Finally, it never hurts to get some professional advice. A financial adviser can help you decide which options — whether an off-grid retreat, a home renovation or a creative real estate investment strategy — are financially achievable. Smart planning can help keep costs manageable and that your vision aligns with your long-term financial goals.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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