Passive Income
 

Do you make any passive income? Does it exceed the salary from your regular job?

Examples of passive income sources include: rental, investment dividends, book royalties, website advertisements, self-running web businesses, revenue from software products such as iphone apps, other self-running businesses, etc.

normally how many hundreds of thousands must you have invested in stocks before the dividends are in the region of $3000 ah?

Rental + Dividends = 190k p.a.

3k per month? that means 36k pa.

36k / 0.0685 = $526k

if you invest in a high-yield stock like Starhub. other stocks may need more. some stocks don't usually give out dividends, like Apple.

Starhub Ltd (STAR.SI) Quote| Reuters.com

How much money did you put into the rental properties and stocks?

oops.. i mean per quarter or year... looking at more realistic returns here.

for 3k pa, you need to put in about 44k.

for 3k pq, it's 131k.

assuming yield is high at 6.85% (starhub).

The calculation is correct, but not recommended to put all money in Starhub as their dividend is higher than profit, so their dividend is not really dividend but giving out principle as well.

Spread out risk usually yield is ~4.5%. 3k per q will need about 270k.

starhub seems to be climbing for the past year
pretty expensive now

By the way, where is a good place to get educated on stocks?

Sad truth is nowhere. Google can show you many website that teach you basic investment terms, but in terms of how to make profit, it is like religion.

Endless debate and squabble between, FA / TA / Hybrid, EMH / Partial EMH / Non-EMH, Behavorial / Asset Allocation / Hedging, Long/Short, Stock/REIT/Trust/Warrant/Forex/Future/Fund/Swap/Index.....

Everyone claim to believe in something and insist their way is the best. The only way is to spend your own money and test out and hope you find a formula that works before loosing all your capital.

I'm definitely not the best, but I buy blue chips when they are considered "cheap" (debatable) and keep them for a long time to (1) milk their dividends and (2) let them appreciate in value.

I don't believe in "trading" (buying and selling frequently and in bursts) - the party who benefits most is obviously the brokerage or your broker.

Thanks for the advices. Hope to have passive income from stocks.
However looks so complicated, not even sure how to make the first step?

Like I say before, you will believe in what you will. Others will say they don’t believe this is an implementable strategy as the concept of cheap is just a subjective guess.

I have researched extensively on reading materials and interview with real life people who play the markets. There is simply no consistency and correlation between actual result and all these different beliefs people have. All strategies seem to work for some and dun work for others - It’s a potshot.

is it the norm for stock to give dividend payouts? i was under the impression normally they don't.

Yes some do. Read yesterday's Sunday Times.

invested 300k - divided 15k annually

Does anyone have other less traditional sources of passive income? Maybe not ex-husband's maintenance allowance or late auntie's estate, but how about book royalties or patent licence fees, or even an iPhone app?

best is inheritance from a tycoon relative you never knew you had

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.

This is a common misconception that net property yield consist of just gross rent – installment. The 2.5% is just gross rent – installment.

Your real monthly cashflow will be substantially lower as there will be a host of charges that you will need to provide for on a running basis like tax, MCST/landscape maintainance, CAPEX on furnishing installations the like, vacancy costs, leasing commissions, insurance etc.

Most experienced property investors know that as a rule of thumb an 80% leverage incurs negative monthly cashflow and the breakeven point for cashflow neutrality is around 55% - 65% leverage.

My passive income:
- website similar to salary.sg $1k
- iPhone apps $1k
- subscription sites $2.5k
- ice-cream shop $5k
Total: not enough. will never be rich.

Hello, ultimately the property will be for you to keep after end of rental. Don't you think so.

If you add up all this cost, if anyone own an HDB, will be losing money. The fact is that we have a roof above our head by end of the day.

Don't mislead people please. If you leave the property vacant, those opportunity cost will be more. Do you maths.

Why not? Your 9.5k passive income is more than many ppl's basic income. Save your money and invest them wisely.

Can you share with us how you managed to build up such a substantial and varied pool of passive income sources?

It's hard for me to even find ONE! :)

i think most people here are not interested in making passive income (or they don't know how to). it's a "salary" forum, not a "passive income" forum.

schools don't teach you how to be a business owner. they give you a degree or diploma so you can get a job.

Are you still studying in your secondary school? Salary can be inclusive of passive income by our own term. Do you expect to ppl to rely on the salary to survive and don't have any contigency plan.

Street smart ppl will not think like you, seriously.

Dude, you'll be surprised most people's sole source of income is their job. Many dream of buying a condo to rent out, but are never able to do it. Bank interest doesn't count, cos it can't even pay for a cup of coffee.

Bro, couldn't agreed more. But if a person is able to do so financially, or planning to do so. It will be a great motivation to work towards achieving that goal. Regardless, whether having a full time or part time job. Passive income is the way to go when you do not feel like working for anyone anymore.

whatabout dividend stocks? i get about sgd 550 per month from my reits. not much but better than nothing.

Yes, that is pretty good, but there's capital costs to it.

I admire those people who managed to find low-capital passive income sources, such as phone apps and websites (as mentioned in some previous posts). Though effort is required, I would argue that all income sources, passive or otherwise, require much effort, e.g. you need time to research on which condo/shop/Reit to buy and after buying, you need to monitor its operations/price/etc.

I hav close to 90K in stocks....the dividendscomes out to be 3K plus.....most are blue chips that i bought from 2000 - 2008

wat reits are you buying?

how much you invest to buy reits?

$550 dividend a month is alot, like 6.6k a year assuming average 8-10% dividend rate

$550 is a lot?? :)

at least can cover the monthly allowance that i give to my parent, if i am not working

I invested 76k, managed to get in at a reasonable price. Will try to buy more if prices come down. Have around 700k cash on standby.

if you had invested all your cash, you will get 5k+ dividends per month.

Rental income seems to be the most popular passive income stream in Singapore, along with stock dividends.

Besides these two, I know of no other "easy" passive income stream. Appreciate any advice on how to build up more streams.

i only get $1k pa from a portfolio of $40k....

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!