Hey all, just been doing a bit of thinking, and wondering what things do people here have that they consider being an asset which produces a passive income….
Like businesses, shares, etc… just something overall rather then only property.Hi Nathan,
I don’t think that there is a lot that is truly passive although I do have commercial properties, shares and business. All of them take are active income to start with and each has its own advantages and disadvantages. Our business provides us with passive and ongoing residual income which we can then put into shares and property.
Best of luck
pr
Hi,
I agree with Pete R!
I think people regularly mix up passive income with buying an investment that pays, and that has no problems nor requires much management.
In my mind the idea of passive income is anything that is not active income, and the key trait of active income is that it is earned as a specific swap for time and had no ongoing benefit once the time commitment ceases.
For example, in a job you are paid for the labour you contribute… when you stop working then you stop getting paid!
Passive investing then is a matter of working once to create an income strem that keeps paying without you having to keep working to drive it onwards. You will still need to work to maximise your asset and its return, but there is not set job description or correlation of time spent back to hours worked.
I guess then that, really, all jobs and investments should be able to be measured on the extent they are active, and thus to the extent they are passive too.
Cheers,
Steve McKnight
**********
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**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
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Hi,
The only real passive income I have is a small storage unit in Melbourne. It came with a great huge 6*6 year lease with full management. I paid cash up front (so no debt) and it faithfully deposits $50 each month into my bank account. I’ve got a stack of shares geared up with a margin loan and they return dividends enough to pay the loan rate + a small amount extra but I still don’t think they are that passive. I have to watch them and trade them in at times and they are heavily geared so that I have to be fairly active to keep them performing.So passive income also tends to be low income. After all risk = return, the greater than chance for a negative outcome, generally speaking hte greater the positive outcome (like playing roulette gets you 36-1).
Surrey.
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