Passive Income

[ATV]

Ok it looks like I completely missed the point thinking you were using the LHA investment model. Sorry

But something still doesn't quite add up for me, I hope you don't mind illuminating as much as you'd care to.

I'll pick up this post from you:

Eleven said:

Ten seconds of searching came up with this:

http://www.rightmove.co.uk/property-for-sale/prope...

and this one from Zuby84:

zuby84 said:

Total rent: £5k pa

which gives a gross monthly rental of £416

In which case, why would someone want to live in the £20k property on Dummore Road which you listed, when they could get a nicer apartment in Glasgow here http://www.rightmove.co.uk/property-to-rent/proper... which I also found in ten seconds of searching. Seems a nicer place with a cheaper rent.

If as you say, you only take working tenants who have a wide choice, then I'd go for the second place every time. How do you get maximum occupancy rates at the lower end with the 20k properties if it's not housing benefit tenants who don't usually get a massive choice?

The reason I mentioned LHA was I know of someone in Sunderland who has done this with approx 250 properties and is absolutely minting it and I assumed you guys had a similar model in Glasgow, apologies for completely missing the mark

Thank you for any input you have, am genuinely interested and thanks for sharing as much investment knowledge as you guys have

[Sideways Rich]

Re-ssurecting this thread as we took a very detailed and interesting tangent on BTL...

What other avenues are people using to generate passive income (anything that is in parallel to a full-time job)?

[98elise]

Sideways Rich said:

Re-ssurecting this thread as we took a very detailed and interesting tangent on BTL...

What other avenues are people using to generate passive income (anything that is in parallel to a full-time job)?

I have BTL's (only 4), but the next thing I'm looking at is self storage. The rent square meter is similar to BTL, but a large retail shed is far cheaper than buying residential property. On flip side there is VAT and business rates to consider. It should be a relatively passive business, possibly needing one employee.

My aim is to semi retire in 7 years with enough income to make my own choices. I suspect that will mean me building another less passive business though

[Sideways Rich]

Thread resurrection, aside from the sagely advice on PH, where much of the discussion has been around BTL, where else does one go on the web to look at building passive income streams?

[aaronkrowne]

I'm just starting out on my 1st BTL but not really looking at it as a passive income more a long term investment

[Eleven]

aaronkrowne said:

I'm just starting out on my 1st BTL but not really looking at it as a passive income more a long term investment

Hey, a long-term investment is a short-term one gone wrong

[MrSparks]

Interesting thread... so BTL's are covered pretty well but what about other forms....

I have two websites that (almost) run themselves, they make okay money, some months better than others, I'm gradually building them to the point I could employ someone to run them for me, but for now they are fairly automated (online orders, supplier ships direct etc) my theory is if I can find 10 niches to "automate" then it's a fairly decent income each month and fairly low risk, but it does require work so it's possibly not fully "passive". I've got a fulfilment warehouse primed ready to go so will soon be buying in bulk at the best prices, but still automating orders, so best of both worlds.

Does anyone do any internet marketing? Affiliate sites? etc... does anyone actually genuinely make any money doing this?, other than the lucky 1%...

[Gio G]

Hi Rich,

Hope you are well? Keep hearing about those buy to let on cars? I think they are suggesting 8-11% return and provide a steady income.. Other than that, don't know too much more..

Thanks G

[Sideways Rich]

Hey Gio, yes life is good, how's tricks? Interesting ref buy to let on cars, will check it out.

[Steve7777]

I think internet affiliate work takes too much time to be classed as passive income. You have to be continually generating content and managing links unless you get really lucky. The best internet-related thing I know of that can be truly passive once you've done the upfront work is stock photography

What I've been doing for the last few years is saving everything I can into the lowest cost index trackers I can find. There's been a good return and where I live in Switzerland there's no capital gains tax so I've got to keep all of it. The market may not keep going up but for now it's doing well and allows me to focus all my 'work' time on my main career and salary which leads to being able to save more.

I have friends who have bought a holiday rental and are doing well renting it our on airbnb but it sounds like a second job with the amount of time they have to put into it. I'm not sure people who do well out of BTL are always honest with themselves about the amount of time and extra investment it takes whilst they own it.

[Sideways Rich]

Steve7777 said:

I think internet affiliate work takes too much time to be classed as passive income. You have to be continually generating content and managing links unless you get really lucky. The best internet-related thing I know of that can be truly passive once you've done the upfront work is stock photography

What I've been doing for the last few years is saving everything I can into the lowest cost index trackers I can find. There's been a good return and where I live in Switzerland there's no capital gains tax so I've got to keep all of it. The market may not keep going up but for now it's doing well and allows me to focus all my 'work' time on my main career and salary which leads to being able to save more.

I have friends who have bought a holiday rental and are doing well renting it our on airbnb but it sounds like a second job with the amount of time they have to put into it. I'm not sure people who do well out of BTL are always honest with themselves about the amount of time and extra investment it takes whilst they own it.

Thanks Steve, a very simple but smart plan, something I intend to start doing, are you investing via Vanguard and one of their low cost trackers? Which indexes are you focussing on?

[Hoofy]

Steve7777 said:

I think internet affiliate work takes too much time to be classed as passive income. You have to be continually generating content and managing links unless you get really lucky.

Yes, however chances are you'll be doing it about something that you actually enjoy so it's more a hobby that can make money. And you'd probably have done it anyway so you might as well make money from it. You could therefore argue that the money making is passive as it happens because you'd be having fun doing it anyway. I run a health blog as I got fed up of writing the same thing on forums multiple times so just direct people to an article covering the topic people are asking about. I would have done it anyway even if it didn't have ads.

I'll try an analogy - it's a bit like if you go for a Sunday drive... but you also get paid for the miles you do. So you'd have gone anyway and passively make money.

Hope that makes sense.

[Steve7777]

Sideways Rich said:

Thanks Steve, a very simple but smart plan, something I intend to start doing, are you investing via Vanguard and one of their low cost trackers? Which indexes are you focussing on?

I use a Swiss company because I live there but it's the same sort of thing as Vanguard. I invest in a tracker which tracks a global basket of stocks but because it's market cap weighted it ends up being 90% European and US stuff. Diversification is the only free lunch you get in investing so you might as well be as diverse as you can.

Hoofy said:

Yes, however chances are you'll be doing it about something that you actually enjoy so it's more a hobby that can make money. And you'd probably have done it anyway so you might as well make money from it. You could therefore argue that the money making is passive as it happens because you'd be having fun doing it anyway. I run a health blog as I got fed up of writing the same thing on forums multiple times so just direct people to an article covering the topic people are asking about. I would have done it anyway even if it didn't have ads.

I'll try an analogy - it's a bit like if you go for a Sunday drive... but you also get paid for the miles you do. So you'd have gone anyway and passively make money.

Hope that makes sense.

Yup, I get it but that generally puts a very low cap on what you can earn from it. I've made about a grand selling holiday snaps on stock photography sites and a whopping fifty quid from gopro videos on youtube by monetising the photos and video I would have taken anyway. I could make a lot more from those activities if I put some effort into them but then they would become second jobs and not hobbies anymore.

[Hoofy]

Steve7777 said:

Yup, I get it but that generally puts a very low cap on what you can earn from it. I've made about a grand selling holiday snaps on stock photography sites and a whopping fifty quid from gopro videos on youtube by monetising the photos and video I would have taken anyway. I could make a lot more from those activities if I put some effort into them but then they would become second jobs and not hobbies anymore.

Yep. Does depend on how much you really want to earn.

[jonah35]

Often the issue with people in 'good' jobs is they hate their jobs so look o save every penny to get put of the rat race to relax in the sun. Its arguably as easy to find a job you like and work forever.