The dole isn't all its cracked up to be nowdays.

In other words, is anyone out there worth more than about 5 mil.

Also,i feel i should mention that im a kiwi and am NOT entitled to any australian welfare so all you tax payers out there dont have to worry.

Trading shares, stocks or futures sounds like fun. But it is also a partial gamble. I've never contemplated doing it full time as a job. Keep in mind that in real down turns, even the professional fund managers can't make a profit in traditional stock trading. Futures is a different story though....

But even if you were doing this, wouldn't it consume at least 3-4 hours of your day anyway.... ??? Watching what happened overseas overnight, reading the Fin Review, reading about stocks and companies on line, physically watching the market, executing trades, doing your tax return, seeking advice from others.... Doesn't it at least become a part time job?

But then again, you need to keep your mind busy some how.

Punt sports - its tax free and the returns far exceed the financial markets. Choose your risks carefully and enjoy yourself. Set yourself small targets and increase your exposure as you feel ready and when something that is nicely misplaced comes along. Don't forget to have a few small wagers on some 8 to 10 leg multi's each week. Take a mix of EPL, league, union and AFL - some 10 leg multi's will pay in excess of $5k - so having a $5 punt can be very tasty. Have several - it rocks when they come in! Centrebet now let you box your multi's - so you only have to get 6 right out of 7 or 9 from 10 etc - gold!!!

Once you feel like you are starting to do ok for yourself and have some risk capital set aside get yourself a betfair account - your returns will increase on average about 7% because you will be getting hit on your side of the spread not the bookies. You can then also become the bookie and lay bets yourself. This is where you can really start to dramatically increase your returns - but can be costly also so tread carefully.

I would advise you share your betting around 3 or 4 bookmakers online. It costs you nothing to open an account at either of them.

Live betting on matches is where things can get really good these days. Some of the intra match ranges are extraordinary! Especially in test match cricket. Madness.

Enjoy!!!!!

i don't do much to get my pay,does that qualify????

The way the financial markets are going today you'd be hard pressed to get a better return than the dole and in most cases would get a horrid loss that sends you broke.

I'm not on the dole but was on it for a couple of months about 20 years ago. Back then it was okay. The conditions were not to onerous and the money wasn't too bad compared to what a young person could earn anyway.

Today the conditions for getting and staying on the dole are much more difficult to comply with plus the amount you receive isn't enough to live on in any sense. The amount on offer is actually a disgrace.


Anyway with passive income I think real estate is the way to go. Buy cheap properties that can be rented out for a decent rental return. Turn negative geared properties into positive geared properties. It won't be exactly passive as tenants move in and out. Houses and units need repairs but its different to going to work every day.

The way the rental market is in NSW at least, its bloody tough for renters to find somewhere half decent at an affordable price. If you can offer such a property, nothing fancy but livable then you'll have no trouble renting it out at a reasonable price.

All the doomsayers say real estate is overpriced. However until rents come down I can't see real estate prices dropping and rents are not dropping around here. Even where I used to live up on the mid north coast of NSW, one of the poorest areas of Australia, with bugger all industry, rents are really expensive.

What?? I thought doctors made heaps. ???
Do you mean you're not a reeeaallll doctor?

we are living off my income insurance at the moment.

sucks big time, rather be back on the mines.

stephen

Julia and her scaley mates are living off my taxes. I would call that passive income on an industrial scale.

Yep I have a passive income, I spent at least 3 hours of last nights 12hr nightshift asleep.
If my boss is reading this I am only joking.

wodgina6722 said...

I would like to hear from anyone living off or partially living off passive income eg I would like to know how they got there? if it will last?

Residential rental income is definitely not what it is cracked up to be.

Most people I know who have wealth have gotten out of or are in the process of getting it out of residential rental property.

If you can handle sharing your house with other people, renting rooms is a good way to go with great tax advantages.

I have had one room rented for $125/week for almost a year now and have just let another room for $150/week to a single professional person with the service level being clean bed sheets weekly.

Not quite "passive income" but it works for us.

Mobydisc said...

The way the financial markets are going today you'd be hard pressed to get a better return than the dole and in most cases would get a horrid loss that sends you broke.

I'm not on the dole but was on it for a couple of months about 20 years ago. Back then it was okay. The conditions were not to onerous and the money wasn't too bad compared to what a young person could earn anyway.

Today the conditions for getting and staying on the dole are much more difficult to comply with plus the amount you receive isn't enough to live on in any sense. The amount on offer is actually a disgrace.

What is a disgrace is the amount of free money on offer (world wide) and the number of people (world wide) who think as long as they continue to vote Labor, Democrat etc, that the "Gravy Train" will keep running.

The fact of the matter is that there are not enough people in the workforce (world wide) to support the number of people on welfare (world wide).


Anyway with passive income I think real estate is the way to go. Buy cheap properties that can be rented out for a decent rental return. Turn negative geared properties into positive geared properties. It won't be exactly passive as tenants move in and out. Houses and units need repairs but its different to going to work every day.

Is your opinion based on the experience of owning and letting property??

The way the rental market is in NSW at least, its bloody tough for renters to find somewhere half decent at an affordable price.

You know why?? Because private landlords are sick to death of renters who have no respect for property and getting less than 3% return on their money.

If you can offer such a property, nothing fancy but livable then you'll have no trouble renting it out at a reasonable price.

Well I would wish you luck on that strategy. I suggest you demand top rent, don't employ an agent who will take 10% cream off the top for doing bugger all and be the landlord from hell. You MIGHT then get your return up to 5%.

All the doomsayers say real estate is overpriced. However until rents come down (they won't) I can't see real estate prices dropping and rents are not dropping around here. Even where I used to live up on the mid north coast of NSW, one of the poorest areas of Australia, with bugger all industry, rents are really expensive. They always will be for anyone who is doing bugger all to contribute to society.

cisco said...

wodgina6722 said...

Need about 2 million then if relying on interest rates.... 100 grand a year to live comfortably.

You are spoilt. We live well (2 adults and one 15 yo child) on $24,000 per annum nett.

Requiring $100,000 per annum to live "comfortably" is just egotistical bull dust.

Cisco, I am guessing you are not taking into account any rent or mortgage for that amount. I guess you could relocate somewhere cheap, but I am sure your rent would still be half of that $24k.

I recently thought about selling up and spending the proceeds, but then I worked out that interest rates aren't that high, and you need to factor in inflation, and there will be income tax on top of that too.

I worked out that I would get an initial windfall, but each year I would be eating into the capital, and would not come out ahead.

It's a shame really, as I was really looking forward to sailing for a few months...

cisco said...

FormulaNova said...
Cisco, I am guessing you are not taking into account any rent or mortgage for that amount. I guess you could relocate somewhere cheap, but I am sure your rent would still be half of that $24k.

Like I said the $24k is a nett figure. It comes from other peoples rent and I got rid of the last of my mortgage about ten years ago.


I recently thought about selling up and spending the proceeds, but then I worked out that interest rates aren't that high, and you need to factor in inflation, and there will be income tax on top of that too.

I worked out that I would get an initial windfall, but each year I would be eating into the capital, and would not come out ahead.

It's a shame really, as I was really looking forward to sailing for a few months...

The way things are structured, getting off the treadmill is damn near impossible for the man in the street.

It IS a shame. I have been looking forward to going sailing for years but realisation of the dream doesn't seem to get any closer.

Won't you reach a point where you could have a great life if you sold it all off?

Just to answer the original poster's question, I can see a point where my house will start to pay itself off. This is as close as I think I will get to a passive income, although in the meantime there is plenty of active working needed to pay the loan...

Unless you have a great business idea, I am not sure there are any shortcuts to getting a passive income.