What does it really take to earn $100k PA Passive Income

With greater yield comes greater tenant management issues. A passive income experience it would not likely be.

That depends on the property, the suburb and sometimes just luck. I saw a post somewhere from a guy who'd bought in SA, the tenant hadn't paid rent, trashed the place and then left. The agent said to him basically tough, 'I can't be bothered to manage properties in this area anymore', and he was left to deal with it on his own and trying to find a new agent. Not sure how it worked out for him but not pretty after all the purchase costs and holding. I wouldn't view that purchase as an asset but then who knows over time? Lots of people are doing well in similar suburbs. He'll maybe do just as well in the long term as someone who paid huge BA fees, big stamp duty etc etc on a property somewhere more popular with investors and relative risk of oversupply, reduced demand, stagnant values/rents etc.

High yield is definitely important but you obviously have to know the level of risk and discomfort you're happy with. Personally I don't want to hear about 'oh well, the tenant doesn't pay all their rent but the house is near a cbd so might be worth a fortune in 20 years'. That's just MHO. I think payment now is important because there may be no future gain. If it's high yield I would want the tenant actually paying agreed rent, or you're fooling yourself.

I can say from experience that paying down loans does take forever. We tried increasing our income from employment and are doing well but it still takes years. Our biggest investment gains have been from properties nowhere near a cbd, with no research (just luck as we happened to be living nearby and saw what was happening), no BA's, thousands spent on LMI, stamp etc. It's a gamble though so why not if you can afford it.
 
Also starting young is another advantage. I started when I was 19

Absolutely because with the best intentions in the world, things get in the way to stop you making enough profit to be financially free....kids, the market, investment mistakes, life in general. Great there's lots of different ways to get there though.
 
Yield is important. It's no secret that we started out on a low income, so had to find +cf properties as we could not afford to buy anything that was neg geared. We were basically looking for stuff that fit Steve McKnight's 10 second rule, before he started spruiking it.

We've got probably a 50/50 mix of regionals & city property. An example of one of ours is in regional Vic. Purchase price was $67k, renting at the time for $120pw. I think we bought it in around 2002. It's now worth around $180k, and rents for $220pw. It has a long term tenant, has no issues whatsoever. It just sits there & brings in the $$. To me, that's a perfect investment, as it's made money from day 1.

Then we have some city stuff with a much lower yield on purchase price than this one, where there has been nothing but problems. For instance a unit we bought under market value. We've had several tenants go in, all looked good at the time, but something happened in their lives & they turned bad. We've got one getting locked out on Thursday. We're still happy with this purchase though, as we bought at the right time, and it's had very good CG. It will be sold in the near future, as it's done it's job now. It was bought specifically to sell once it gained in value. This one cost money from day 1, but was bought for the CG NOT for the yield.

So, two examples of two completely different vehicles. Both have done the job they were bought to do, but I think you need to understand each property and what they bring to the table BEFORE you buy them.
 
So, two examples of two completely different vehicles. Both have done the job they were bought to do, but I think you need to understand each property and what they bring to the table BEFORE you buy them.

I think anyone on here who is asking where to buy should read the above paragraph a couple of times.
 
But looking at past 40-50 years it is safe to assume returns from dividends from the sharemarket can be in range of 4-4.5% grossed up.

What would be a safe net dividend yield to base some calcs off for the large LICs? e.g. AFI/ARG/MLT

Currently it's about 3.6-3.9% based on historic dividends.

Would you consider 3.6% net yield, or 5.14% grossed up overpriced?
 
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