Passive Income Streams

Sort of agree, but the other way to look at is what your return is for time spent.

For example; a person working 50 hours per week, and earning $50k wage. That is not passive.

Or; the person who works 50 hours a week as the head of a large Company (yes; they may work more hours, but you get what I mean) and who earns $5m per year.

You could argue that he/she is earning $4,950,000 per year passive income for their 50 hours of contact hours.

Or; the investor who owns an IP outright with no debt at all. Rent is $1000 per month. Outgoings roughly 20% = $800 per month income. Allow in that total say; 4 hours per month for work liasing with PM, filing statements etc.

Say the investor earns $50 per hour in his/her normal job.. the IP returns $200 for the work by the investor, and a passive income of $600 per month..

 

Ubud, Bali. They poured the concrete floors (will be polished concrete) for the entire complex over the last two days...yeeha!

I'll PM you with the address and a couple of details - I can't do it here or it will be deleted as ads.

 

How did you do this? Hak Pakai?

 

Yes; land owned by Indonesian, leased to us for 30 years, with option to renew again.

My SIl and BIL liove there, and this is there 4th such project - previously only single family dwellings.

The builder is the signatory for this latest property as well - for such things as anything relating to Council/Authorities requirements.

 

Doesn't sound like someone who had risk mitigation first and foremost before entering the equity markets I'd suggest the issue at heart here is how you chose to participate, not the asset class.

 

Depending on what you buy, real estate can be very volatile too. My Melbourne development site went through 2 complete cycles of boom and gloom before I finally sold it at the end of the third boom. That was only 8 years, so the ups and downs were a lot more rapid than is normal for property. Still not a volatile as shares though.

I realise there aren't the leveraging opportunities using shares as security and the loans are at call. But how about borrowing against property to buy listed securities? You get the advantage of low rates, not at call funds and residential rent coming in but can buy an asset that (while volatile in value), provides a better income stream than rent. I really must start a thread about this.

 

Haha... me too. But now I have a decent amount of super, I am learning to trust other people to look after the money. Actually, my fund managers have been doing a great job looking after my money. When I diversify into listed securities, I will be looking at managed funds or ETF type products. And I have trained myself not to look at the value all the time. I just check every 2 to 3 months or so. I could do the same with a managed fund.

 

Anyone making income stream from network marketing/social marketing, blogs etc....

 

Melbourne currently is like an "every ready battery" keeps going...
Over here at the moment and the markets in general are just going great guns, some better than others.
Interesting, my Thomastown project has increased by at least 10% overall. I guess that is the risk of selling OTP if prices continue to rise.

 

Lets not confuse price volatility with risk. They are separate issues. We are talking about income streams here, not paper net worth anyway. And the very volatility that some fret over, provides the opportunity that others seek. Its not just as simple as resi IP - just lever up and hope for the best. In your example you can see why leverage is a two edged sword. As someone that uses leverage in stock investment, when it comes to static gearing less is more. I think that the disciplines of resi property and stock investment are very different, horses for courses.

 

I have met people, personally I don't like it. To develop any real income you need a large network which in my experience requires some aggressive sales to friends/family to develop and you know what they say about mixing business and family/friends.
Think I have been very negative on ideas today, perhaps best to ignore me.

 

Not at all, I went to a network seminar ... his name??? Rolton, apparently the Australian guru of network marketing. The audience were glued, they had stars in their eyes, however the reality is its probably very difficult to make this work or to become seriously successful? I have no interest in this

I think Rolton made most of his money mentoring

MTR

 

This is precisely what Im already doing using NRAS. Leverage of up to 90% is available, meaning your contribution is 12% + stamps. Not at call. Underpinned by bricks and mortar. Superior negative gearing. Superior tax free dividends than just about anything available on the ASX or elsewhere... and if reinvested into non deductible debt, superior CGT free profits if that PPOR asset is ever sold.

 

'Mentoring'...*cough*

My wife sells fabric online, it provides ~$50-100 a week. However when you have to fork out $5,000 just to get a shipment it takes a fair while to get a ROI. Uses ebay, etzy, facebook, intagram and she at one point had a website where she was paying $20 a month (IIRC), not sure if she still has this.

Reward for effort is pretty poor, but she doesn't dedicate much time to it as she works fulltime and we have 1 child. She started the business just before our child was born so about 2 years and we have just about paid back all the start money invested (would still be at a loss if we were to charge wages).

A friend at work has a friend who did well from it, he sells hunting equipment online. He has no interest in it but he says he does quite well from it.

 

I love having multiple income streams...not sure whether passive /active definition but heck! i have not need to answer to a boss for some years! So passive enough for me....

1) net rents
2) share dividends
3) private pension

I have completely replaced my income

atm trying to shift more of 1) to 2) ; this takes time...

Reading Financial Samurai : multiple streams of income was a lightbulb moment for me!

 

pak bayview - berapa banyak per malam? boleh tawar?

 

My goal is also the same, and several friends have already achieved this by 30. Putting 2 and 2 together this means $2 million worth of VAS.

I use property as a capital boost; as a cashflow investment it's not stellar. My best IP is at 73 LVR and returns a massive $700/mth net. Given an initial $180k investment this is a return of 4.8% cashflow ROI. To reach my goal I would need 11.6 such IPs and about $2m in deposits and costs. About the same as VAS, but much more complex and let's not forget the elephant in the room... APRAhensive err I mean, servicing.

If all my managed funds / shares were set to pay out distributions / dividends I would be a good way towards my goal, but as I'm not starving for cash atm I've switched them all to DRP / reinvestment. As evidenced by the multiple piles of paper on my desk yesterday

 

Only recently.....i invested $125,000..........returning $6,300 per month NET....plan on flipping it for $350,000 next year.

 

Wow, who needs property???

what investment vehicle may I ask?

 

@virgo may I ask if you use to be quite active in the past SS day? Also, what is the main reason in shifting your portfolio from 1 net rents to 2 dividend?