Quote:
Originally Posted by Unregistered
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.
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1. That is not realistic as most people have to work very hard even just to sustain one
HDB flat.
2. a $2 million (for simplicity, we just give it an aggregate number, whether you own 2 properties, $1 million each or one $2 million, or three properties $680K each isn't that important) property at market price will cost you alot more if you take a loan for $160K. Taking that into account, one cannot take pure income as $100K per annum. On top of that, condo has very expensive maintenance fees which you have to deduct away. What about electrical bill? Maintenance fees? property tax? 4.8% yield is at the high end...most property don't yield so high. In fact,
HDB flat has higher yield.
3. After, careful consideration, all the above mentioned ways of generating passive income isn't at all that reliable and stable.....and think....a person who can generate that much passive income relying solely on rental or REITs yield are already quite rich to start of with.