$100,000/pa Passive Income...

[Intrinsic_Value]

In case some have not followed the next extension from the above post (or will technically argue that its not income)

The final stage is to convert that capital into a diversified passive income stream that creates $100k.

The diversification will depend on the sustainable income streams of the different asset classes available at the time.

Its not hard!!!!

 

[MTR]

I don't think that they became wealthy quickly. Buying one property after another while scrimping together the deposits takes many years to generate 100k pa.

Generally this is the case, however if you buy properties in a booming market the deposits take care of themselves.

I will give you an example, I purchased a property in Mandurah for $199,000 January 2002, by June 2002 it was worth $270,000 (5 months), by December 2006 I had a bank valuation of $600,000 (tripled in value 4 years).

OK, even if you can only afford to buy 1, you can certainly repeat the process very easily, but try saving this money in flat market on an average income you could be waiting for hell to freeze over.

My point is yes agree you have to save for deposits, but with a little research and continually monitoring markets if you buy when the market is just starting to rise you will do better than the average buy and hold mum and dad investor.

MTR

 

[westminster]

I should be reaching this goal by mid next year. $100,000 isn't enough but it's a good start.

Yup it's not enough to retire as I earn more than that but it's a good start

 

[china]

Generally this is the case, however if you buy properties in a booming market the deposits take care of themselves.

I will give you an example, I purchased a property in Mandurah for $199,000 January 2002, by June 2002 it was worth $270,000 (5 months), by December 2006 I had a bank valuation of $600,000 (tripled in value 4 years).

Did you do any renos on this property or was it simply buy and hold?

 

[Deltaberry]

If some of us got together and did some wealth seminars, we'd rake it in, or at least have a full session every time of 300+ people. But I don't do unscrupulous things like that.

 

[westminster]

If some of us got together and did some wealth seminars, we'd rake it in, or at least have a full session every time of 300+ people. But I don't do unscrupulous things like that.

Cmon - can't we offer a wealth creation package for $5000 and you too can be a developer/financially successful/free from the everyday grind blah blah. Enrol in the next 30 mins and I'll throw in my book 'How I went from geek to developer in 3 nanoseconds'. Introduce a friend and you can both receive a free set of steak knives.

 

[MTR]

Did you do any renos on this property or was it simply buy and hold?

No reno, nothing creative just simply buying at the start of a boom cycle.

 

[MTR]

If some of us got together and did some wealth seminars, we'd rake it in, or at least have a full session every time of 300+ people. But I don't do unscrupulous things like that.

D Boholt is charging her clients, "gold class members" I think it called, $30,000 a pop, that does not include travel and accommodation, she selects venue.

Otherwise you go the Steve McK way, he conducts seminars around Australia then he sells his packages for perhaps $1000 a pop, he must be selling these by the truck load.
Even better you set up a Management Fund you have total control, collect management fees and all associated costs, you can even make a few up if you like. I would not be surprised if we see him on the BRW magazine one of these days.

 

[geoffw]

Cmon - can't we offer a wealth creation package for $5000 and you too can be a developer/financially successful/free from the everyday grind blah blah. Enrol in the next 30 mins and I'll throw in my book 'How I went from geek to developer in 3 nanoseconds'. Introduce a friend and you can both receive a free set of steak knives.

First things first.

Pictures of all presenters. Each of them with a red Ferrari.

On topic. $100,000 income is an arbitrary figure. The amount required would vary enormously. I've never early anything near that. My daughter has spent 17 months travelling South America on $20k. She is having the time of her life.

Once I would have found it difficult to spend extended time in another country. But the Internet, and its ready availability in so many places, has made living overseas for a cheaper retirement a much easier thing to do than it on e was.

 

[D.T.]

First things first.

Pictures of all presenters. Each of them with a red Ferrari.

On topic. $100,000 income is an arbitrary figure. The amount required would vary enormously. I've never early anything near that. My daughter has spent 17 months travelling South America on $20k. She is having the time of her life.

Once I would have found it difficult to spend extended time in another country. But the Internet, and its ready availability in so many places, has made living overseas for a cheaper retirement a much easier thing to do than it on e was.

Yep, that's why $100K would be plenty for me. I'd spend 3 months a year exploring similar places as your daughter did.

I'm in the process of changing employers, so hopefully that'll help my serviceability

 

[monalisa]

Generally this is the case, however if you buy properties in a booming market the deposits take care of themselves.

I will give you an example, I purchased a property in Mandurah for $199,000 January 2002, by June 2002 it was worth $270,000 (5 months), by December 2006 I had a bank valuation of $600,000 (tripled in value 4 years).

OK, even if you can only afford to buy 1, you can certainly repeat the process very easily, but try saving this money in flat market on an average income you could be waiting for hell to freeze over.

My point is yes agree you have to save for deposits, but with a little research and continually monitoring markets if you buy when the market is just starting to rise you will do better than the average buy and hold mum and dad investor.

MTR

MTR, how do you avoid overpaying in a rising market? I am guessing if the yield is reasonable in a crazy market, perhaps that is some insurance ensuring you aren't paying too much?

 

[DaveM]

If I wanted $100k passive income I would buy some professional suites and rent them out with secretarial services to medical professionals/consultants who need somewhere to meet patients without the need to run their own full offices due to being out at hospitals and clinics etc.

 

[monalisa]

If I wanted $100k passive income I would buy some professional suites and rent them out with secretarial services to medical professionals/consultants who need somewhere to meet patients without the need to run their own full offices due to being out at hospitals and clinics etc.

lol - not another one with medical services!

 

[MTR]

MTR, how do you avoid overpaying in a rising market? I am guessing if the yield is reasonable in a crazy market, perhaps that is some insurance ensuring you aren't paying too much?

No guarantees of course.

Yields are not always good.

I have never purchased when a market has peaked, but who knows maybe I will one day. I either purchase when the market has bottomed or when it is rising.

You get a feel for these things especially if you have been doing it for years and you are continually watching for the signs, its not rocket science.

For example, one would have to be deaf, dumb and blind not to realise that the Perth market is now going sideways, the signs are there if you choose not to ignore them.... more listings coming on the market, not so many people coming to home opens and a big one negative market sentiment due to mining slowdown.

However it does not mean not to buy in Perth, just have to be selective with what you buy.

 

[Tano]

No guarantees of course.

Yields are not always good.

I have never purchased when a market has peaked, but who knows maybe I will one day. I either purchase when the market has bottomed or when it is rising.

You get a feel for these things especially if you have been doing it for years and you are continually watching for the signs, its not rocket science.

For example, one would have to be deaf, dumb and blind not to realise that the Perth market is now going sideways, the signs are there if you choose not to ignore them.... more listings coming on the market, not so many people coming to home opens and a big one negative market sentiment due to mining slowdown.

However it does not mean not to buy in Perth, just have to be selective with what you buy.

Hi Marisa
How do you get the info on " not so many people coming to home opens"? Do you ask RE Agents, regularly attend home opens or is there some statistic somewhere?

 

[westminster]

First things first.

Pictures of all presenters. Each of them with a red Ferrari.

On topic. $100,000 income is an arbitrary figure. The amount required would vary enormously. I've never early anything near that. My daughter has spent 17 months travelling South America on $20k. She is having the time of her life.

Once I would have found it difficult to spend extended time in another country. But the Internet, and its ready availability in so many places, has made living overseas for a cheaper retirement a much easier thing to do than it on e was.

So a red 1990 Subaru Legacy wouldn't cut it?

Travelling is something that I desire greatly. And for the kids it's an amazing opportunity to see outside of the bourgeois life.

There will be this golden time between the kids leaving school and them having grand kids and me wanting to be near them for that. With a 14yo down to 5yo that golden window of opportunity could be quite small. If the 14yo waits until he's 35 then I'm set for some travel time

 

[handyandy]

unless I could do something creative like build at rear and make it neutral if you get my drift.

Who's drift is that

 

[MTR]

Who's drift is that

My drift of course

 

[mikezen]

My drift of course

Have you bought in Brisbane in anticipation of a price rise shortly there?

 

[MTR]

Have you bought in Brisbane in anticipation of a price rise shortly there?

I purchased 1 property in Nerang in December, I believe the market has bottomed, but that was a cash flow play. Paid $360,000 renting for $650 pw.

I have been purchasing in my own backyard Perth over the last 18 months as the market has been rising and am now developing a 3 unit site.

MTR