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Originally Posted by Unregistered
Annual passive income 100K? But using how much capital base? If you are are using stocks dividends and REITs and assuming that the dividend rate is 5%, then you need $2 millions capital base to generate $100K passive income.
Owning property and rent out. At present rental rate, most of the return rate is less than 5%. Then you need to be owing a property worth more than $2 millions at market price to generate $100K of passive rental income.
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Income does not mean profit.
Just using the property example, 100 k a year means rental income of about 8000 a month. Not terribly difficult. Assume this is from rental of 2 condos at 4k each. At a rental rate of 4.8%, this means each property costs $1 mil.
IF bought before all the cooling measures, the upfront investment is only $400 k (200k each as downpayment for the condos).
But as I said, 100k income does not mean 100k profit. Most of that 100k will go towards covering the mortgage etc.
Still, for a 400k investment, you will get 100k passive income a year.