Passive Income

[aspenx]

Originally Posted by Unregistered

If you want to know how to get high passive incomes, you should visit this thread: https://forums.salary.sg/income-jobs/...annum-354.html

There you will see many big fish claiming passive incomes from $50k pa to $120k pa just shaking legs.

Salary.sg threads (especially that one on earning p.a) are so full of people posting really big numbers... so, thank you for your more reasonable post and link. It will help me with my research.

Current have day job, assignment-based sideline and active trading account. Need to diversify and find some passive means before I kill myself from overwork...

I believe though that even for passive investments, a sort of active approach to rebalance your investments is required.

How many times a year do you guys normally review and reposition?

I think 50k to 120k pa in passive income may not be baseless claims.

Take property investment, for example. For a $1 mil property, a person puts in only about $250k (assuming he wasn't hit by ABSD etc), borrows the remaining, then rents out the property at a modest 4k a month. That's already 48k of passive income a year.

No one said passive income was net of cost.

But say you factor in costs like interest, repairs, maintenance, agent's fee etc of 2 k a month, he would still get a net 24 k pa. Close to 10% returns on a 250 k outlay.

With stocks, you can't leverage, which is why you say you need 900k to generate 60k.

Originally Posted by Unregistered

If you want to know how to get high passive incomes, you should visit this thread: https://forums.salary.sg/income-jobs/...annum-354.html

There you will see many big fish claiming passive incomes from $50k pa to $120k pa just shaking legs.

There are stocks that give 7% or more returns! but you wouldn't put all your eggs into 1 basket. A prudent investor would spread his bets. This site A Dividend Seeker on SGX will show you what dividends the various stocks give.

Simple Maths will tell you that even with 7% return pa, to get $60k pa or $5k per month passive income you will need to invest at least $900k!

After many many years of building my investment portfolio, I am just hitting $40k pa of passive income. It is still not enough to find my retirement, but helps to boost my income. And it certainly feels good to see money coming in that you don't have to work for.

Usually I would reinvest the dividends, but last year, I used $15k of it to give myself and family a treat with a European holiday!

Originally Posted by Unregistered

I think 50k to 120k pa in passive income may not be baseless claims.

Take property investment, for example. For a $1 mil property, a person puts in only about $250k (assuming he wasn't hit by ABSD etc), borrows the remaining, then rents out the property at a modest 4k a month. That's already 48k of passive income a year.

No one said passive income was net of cost.

But say you factor in costs like interest, repairs, maintenance, agent's fee etc of 2 k a month, he would still get a net 24 k pa. Close to 10% returns on a 250 k outlay.

With stocks, you can't leverage, which is why you say you need 900k to generate 60k.

citing passive income numbers that aren't net of costs is extremely misleading.

anyone can easily "generate" passive income of $10k/mth by paying me $11k to pay him $10k (i.e. you make a loss).

that said, 24k pa _net_ passive income is still quite ok.

I live in a landed terrace now worth 2 million with outstanding mortgage of 580k which we hope to pay off in a few years with savings and cpf. Also have a mm unit going to TOP soon with outstanding 380k. Hopefully in a few years time we can sell our landed and with 2 over million buy another 3 rm condo and another mm unit and pay off our mm mortgage. Then we will be debt free and have passive income of 5 to 6 k a month from our 2 mm units hopefully sufficient for us to retire or semiretire...

[Greg Koch]

I have passive income from mobile apps and ebooks mainly.
Some from stock and REIT dividends too. But passive income from digital products is definitely the way to go. Achievable without large sums of capital. Just need creative juices