The inherent leverage of investing into property (versus stocks) is that can help you reach your passive income goal faster.

For instance, assume a 60% financing on your second property. An investment of $400k on a $1m property can get you a rental yield of $25k p/a, after deducting off interest costs. (assume a 2.5% net rental yield)

On the other hand, putting the $400k into stocks may get you $16k p/a. Assuming an average 4% dividend yield.

Of course leverage works like a 2 edged sword. A key here is that interest rates remain low. Another assumption is that your property remains rented out.

The effect on capital appreciation is the same. the ROE from a property investment exceeds the ROE from a stock investment due to leverage, assuming the same % of capital appreciation.