Just curious of what people do for passive incomes, given that bank interest rates are pretty low.
Cheers.
Who Here Has a Passive Income? if So What Is It?
nomunny on 21/10/2017 - 17:57
Comments
It means dole bludger, and its tax free for life.
I have some index fund ETF's , they give great dividends.
vhy?
vhy nnot?
I'm an analyst at Westpac.
I have a $80k premium new car, it's an investment with high yield. This yield is so high that I don't even need a passive income./s
please explain
Yeah, that's done now.
Every. Single. Post.
Never gets old tho tbh.
It’s pretty old tbh
Good old Westpac analyst will never be forgotten by OZBargain community ;)
I got that reference!
Selling apps on the appstore
Might be a bit late to the party?
if you know what you're doing, you can easily make 5-6 figures on the side
It would take 6 months to develop. The App store is flooded with FREE apps these days.
It would be hard for your app to stand out?if you're already a developer, apps dont really take 6 months to make. It is true there alot of free apps, just need to focus on alot of user reviews and keywords
The best way to go is to acquire a diversified portfolio of quality Aussie shares that pay fully franked dividends. Your return should average around 5%, fully franked and will increase over time.
You can start small and build your portfolio as you can afford.Can you give a short dummies guide to this? Like what software/website? Lets say I have 5K to put in. Do I get 1x5k thing? or 5x1k things? Any suggested choices? Any lingo that might come in handy? Complete Newb here with this stuff. I'm happy to google and self learn but it'd be great to be pointed in the right direction <3
I only buy in 5k parcels. If I was starting out and had 5k to invest I'd buy an ETF like VAS. I wouldn't buy 5 1k parcels. It costs money to buy and sell shares. I use CommSec but not for any reason other than I bank with Commonwealth too. The best advice is don't buy penny stocks, don't panic sell, don't read crap like motley fool and stay the hell away from hot copper forums.
I think to do well in shares, you have to do the opposite of what the media are saying.
Good suggestion, but dont overlook international equities too. Australia only makes up ~2% of listed equities. Easy to get exposure with ETFs through your regular broker - commsec etc.
Complete newb here as well. Where do you recommend opening a brokerage account? Commsec?
Commsec has expensive broker fees which will eat into your profits.
Out of all the major banks, Nabtrade has the cheaper trades for $14.95 for trades under 5k, and you get access to international shares at the same price.
However, selfWealth is the cheapest for Aussie shares though. $9.50 per trade no matter the trade size. Click one of the referral links on OzBargain to get 10 free trades. That would save you $95.
Hmmm. Intersting.
Perhaps slightly more expensive, yet it is the most technically advanced and safest platform in Australia - insider's knowledge. I'd rather pay few bucks more and sleep knowing my shares are safe rather than invest through brokers that may evaporate one day…
Do you think you could elaborate? As far as I know, when you purchase through these brokers, you own the shares. They are merely sponsors.
Also, if NAB evaporates one day then we are surely in for more trouble.
@Hogg:
This article explains it pretty well, I think (skip ad blurb at the bottom):
https://australianinvestmenteducation.com.au/investment-blog…While your CHESS shares are safe (your transactions will be frozen for a while), some new financial startups offer partial share purchase, which are not necessarily held in your name. This would raise a red flag, at least, for me ;)
Also, not mentioned in the article is the question of cash accounts held with the broker when it went bust… I doubt ASIC/ASX guarantees these, to be honest.
All in all, I'd never use cheap brokers to save on brokerage fees, unless you play with small amounts you don't care much about. If you transact parcels, say around $5-10k, then the $5-10 dollar difference becomes insignificant. At least, IMHO ;)
Thanks for the info.
I still feel safe with SelfWealth though. I don't keep cash in my broker accounts (which are ANZ accounts with SelfWealth), and all holdings have legit CHESS statements.
As for NAB, if they go bust then something has gone very wrong.
I might stay away from brokers like IG then.
You might wanna do research around here as you would not want to trade in multiple platform and stick to one. I'm a newb to this too but I went with IG - $8 brokerage fee and allows you to trade in LSE and US stock exchanges. Building a portfolio slowly for long term investment. I think one of the drawbacks was that they don't have index funds - which I'm still trying to understand.
I haven't used IG but if you can buy Australian shares, isn't it just a matter of entering the ticker of the ETF you want to buy? E.g. ASX:VAS (Vanguard ASX300), ASX:STW (SPDR ASX200), etc.?
@hayne: hmmmm yeah just noticed that you have ETFs,ETCs and Trackers section. Then there is an Indices, Commodities and FX rates for data only which you can't buy. Thanks for that.
I have done a lot of research but I still don't think I'm an expert so everything I say is just IMHO.
There's nothing wrong with buying through different brokers. You still own your holdings but they're just sponsored by different brokers. You can even transfer your holdings if another broker comes up with a better price. It's just like churning mobile providers, or credit cards; it's the ozbargain way. I've transferred my holdings twice now to move to cheaper brokers as I've discovered them.
IG appears to be for trading CFD, and forex. I'm not really into trading per se. Do they allow me to buy regular stocks and etfs? If so then I would churm for sure if it's $8/trade.
It depends on your investing style. If you're a believer of passive investing then the biggest determining factor in affecting your profits are transactions fees. Even if you actively invest, I would still rather have lower fees.
@Hogg: Yes IG does allow regular stocks - and now I noticed ETFs. But I am not sure if they list all ETFs as I am new to this. It is interesting that you mention you moved your holdings from one platform to another. I did not know you could do that.
You usually just fill in a broker to broker transfer form to transfer your holdings.
I'm just looking at things quickly but is IG just for trading CFDs or can you buy shares?
Looking at their fees, they're cheaper than SelfWealth for trades under $9500 for ASX but it's cheaper to use SelfWealth for their fixed fee if trading more. Also I think Nabtrade is cheaper or the same for international shares.
@Hogg: Yes you can buy shares and I have primarily used it until now for that. You need to fill a form if you need to buy a US stock. I have bought both from LSE and ASX. CFDs were their new offerings I believe which is why they advertised it a lot.
Also consider IG. $8 trades under $10K plus 10,000 Qantas points when you sign up and 25 Qantas points for each trade. Not the best in terms of providing market depth but you can run ANZ etrade or another broker alongside.
Invest every cent far and wide and long term in the stock market. Just draw from the cream as needed while riding out the troughs. A continually rising stock market is what keeps the world as we know it turning. And it will remain so, short of an apocalypse that brings down the West - but then everyone is rooted.
Android and iOS apps = $7k /pa, built a cabin = $11k nett rent pa (cash in hand). Free 10kW solar PV = $2k/pa. VAS shareholding = DRP.
I'm looking into iOS and Android app development at the moment - just a side project on top of working full time.
What did you use to get started?
What 'type' of app or apps have you made to sustain that type of income?Cheers
Me too, but I have to learn java first.
I personally use React Native. You can write cross-platform native apps with JavaScript. There's still quite a learning curve but you can create Android and iOS apps with mostly the same codebase (although you might want to style them differently).
Should try Xamarin Forms. It's cross platform (iOS, Android, UWP). Language that it uses is C#
@Dannyboi09: That sounds very interesting. I didn't know that there was anything that could work cross platform. Thought I was gonna have to learn swift after I'm done with Java.
@freakatronic: Yep! It's really good. One language to learn. They have pretty good documentation for Xamarin as well and a lot of tutorials online
I use B4a and B4i due to a background in MS visual basic.
My apps are targeted in the EV enthusiast market so I can sell for > $20 ea with sales in 29 countries to date. $7k pa is nett profit after Google/Apple fees (fees are approx 40% of $12k pa in sales). I haven't updated the Apps in over a year now, still surprisingly around $600/mth continues to roll in.I gather from other App developers the current "free App, with in App purchases" paradigm has decimated the App market. Luckily I didn't need to go down that path.
..and EV is electric vehicles ?
Do you want to make the cash as a developer or with an app?
If you want to make money from an app, then don't waste your time learning IT, just pay some Indian developers $10/hr on freelancer.com
There's millions of people who can code, so that's not the hard step of app development.
You could experiment with creating informative youtube videos and gain ad revenue from that, maybe some sort of DIY/instructional videos.
We are pretty active with our channel, but if we are to go passive the money keeps coming in, albeit at a fraction of when we are actively posting videos
I'd like to get into that, especially with the advent of Patreon. Now to come up with a video topic that isn't fully covered already…
I earn passive aggressive income. Does that count?
Mom?
Hi Son
health- an excellent investment
Messed around with a shopify store reselling goods off ozb. Was quite successful last year
How much is quite successful?
That's a shitty thing to do, meaning the rest of us miss out.
Quite successful for mine was net 700-1200 PW with about 4 hours of actual hands on work a week. That work was mainly picking packing, drops hipping or being home for pick ups.
No members missed out because no one knew about it, or how to do it kind of thing. The range is a little limited now so I don't really bother. there is still an opportunity to make a few quid.
So if anyone is interested I will pass my knowledge on for lets say, 2 hoyts movie tickets! Bargain of the year!
Hello Chef.
I would be interested to hear how you setup your passive income website.
The price of two movie tickets seems very reasonable.Regards
@diceman99: cant message you,i messaged a few others but they havent been online to reply so first one gets it
@Chef-Johnson:
Hello Chef,Ive just joined Ozbargain. Ive been a lurker for a couple of weeks. It seems I cant PM you as my account is less than 1 day old
I'd be interested if you're still offering.
Cheers
Bitcoin (pyramid scheme). I'm supposed to get 0.25 bitcoins every day from my 0.05 investment.
May I ask which one?
Depends on how much effort you consider to be passive. Real passive is when you set and forget. For that kind of thing then banks, bonds, or vanguards which have good liquidity are your main options. Everything else will scale up in terms of the time it sucks away from you. Whether that be shares, bitcoin, running an online shop, buying and reselling goods etc it all takes time away from what you could otherwise be doing. Generally I would think you should spend your time building a project you actually enjoy and think of small ways to monetise it.
Stock up baby formulas and sell online
I think you need to look up the definition of what a passive income is. Your idea is not an example of passive income.
sport and racing arb. turns out not really passive anymore but a hobbie
I always steal a sugar packet from Starbucks every morning. I receive 100% compound interest rate for any particular day that I take two packets instead of one.
^this guy^
Cryptocurrency was mentioned above but with not much detail. It's currently a bull market and fairly easy to see decent returns over a short period however it is high risk. To get into it steps are:
- Register an account on Coinspot.com.au, once verified you can purchase a variety of crypto
- Register an account on both Bittrex.com and Binance.com. These are two of the big exchanges where you can trade many different types of crypto.
- Send crypto you purchase (withdraw) from Coinspot to one of the exchanges. Each exchange will give you your own wallet for whatever coin you're wanting to transfer. These days I typically purchase Ethereum from Coinspot and transfer to the exchange where I want to trade. Ethereum has cheaper fees and usually transfers faster.
- Do your research on reliable coins / tokens that are worth investing in. Don't buy into the hype on forums, rather use it as a tool to identify potential candidates. Typically if a coin is being hyped everywhere you will be buying at an all time high and when everyone cashes out you'll be left holding the bag.
- Using the ETH pair markets (e.g. ETH:XX) on the exchange you're using purchase the relevant crypto you would like to buy.
My advice would be not to purchase Bitcoin right now, it's fairly volatile due to the hard fork that is coming up in a few days and there's potential for it to drop after the fork as people move money from BTC to other crypto (altcoins). Nothing is certain in crypto however that's just my 2c.
Some coins / tokens that I currently hold and believe are sound investments over the medium to long term (in crypto this is months to a year):
- BTC - After the hard fork. Don't buy into people saying you will get free money from the fork, the snapshot has already been done and any BTC bought now will not receive bitcoin gold.
- ETH - The second biggest crypto market cap after BTC and the primary smartcontract platform in the crypto world. ETH is a fairly safe investment for a long term hold however you won't see significant returns short term.
- NEO - A relatively new smartcontract platform that has amazing potential. Currently around $28 USD with lots of support at this level. Sometimes labelled as the "Ethereum of China" however it's much more than this.
- LINK - Decentralised oracles network enabling smartcontract functionality across multiple networks. Previous support was around $.40 USD and can currently be picked up for $.26 USD due to a drop across the board in altcoins (money coming out and into BTC for the fork).
Again this is just my 2c, I would suggest researching the above yourself and making your own decision before investing. Don't ever blindly just follow advice, it's a sure way to lose your money quickly in the crypto world.
CoinSpot has terrible rates/fees.
If you're going to use your bitcoin to buy altcoins anyway, then buy your BTC on BTCMarkets or Independent Reserve instead.
Bittrex is a good one I personally use for altcoins, and agreed btcmarkets is definitely the best Australian exchange both liquidity and price wise.
Yep agree, I also mainly use Bittrex to buy altcoins.
Binance is quite good too.
Good point, to be honest I hadn't used BTCMarkets or IR so haven't looked into their fees. After looking into both I will be switching over for my fiat transfers so thanks for the heads up.
Agreed. I avoid CoinSpot wherever possible. Didn't get great support there so I switched to BTCmarkets and it's saved me a lot of money and hassle.
Don't buy into people saying you will get free money from the fork, the snapshot has already been done and any BTC bought now will not receive bitcoin gold.
Isn't the snapshot done at block 491,407?
It has been a bit confusing, it seems that the fork has already occurred privately at a block only known to the dev team. Rumor seems to be potentially the start of October however I haven't seen any reliable sources on that. The blockchain will be made public at 491,407.
Here's a source from their official website:
https://btcgpu.org/bitcoin-gold-community-response/Right, I wont bother with this then. I will take the risk of holding my longs on Bitmex and missing out on the forks rather then moving them to my own private keys or holding on a supporting exchange.
do you think bitcoin mining is worth it? i am thinking to find one of those A7 machines to try.
I haven't had any experience in mining so unfortunately I wouldn't be the one to answer this. From my understanding it's extremely hard to profitably mine BTC in Australia due to the high price of electricity.
I've seen calculations before showing that in many cases it loses money rather than making it, however i'm unfamiliar with the Avalon 7 and how efficient this would be.
Hopefully someone else with experience can chime in.
not bitcoins. bitcoin mining hasn't been profitable for the individual for a while. it's at a point where it's extremely difficult to mine and only viable for massive coin farms.
you could look into other coins for mining however.
Somehow when crypto is mentioned in almost every thread about financial advice, I'm scared that we are almost reaching the peak…
With Bitcoin and any crypto currency you are relying on someone else who is going to pay more than you did to make a profit (greater fool theory). It produces no income and has no expected return. Currencies are a means for exchange and a store of wealth and a wild fluctuating value makes it a poor choice of currency for either of these tasks. It has been fascinating to watch and the block chain really might just revolutionise the financial system, but I would never buy crypto currencies as an investment.
That is a fair point. Sound like a bubble…
Good info. Just one thing worth pointing out. While these exchanges keep your different currencies/cryptos in 'wallets', your money is still on the exchanges when it is in those wallets.
It is recommended that you take your money out of exchange wallets when you are not actively trading it to reduce risk. Examples of wallets are MyEtherWallet and Exodus wallet. Also, most cryptos have their own wallet which you can find by searching google.
Property but i don't recommend it in Victoria, landlord have no rights and tenants will soon be allowed to have pets.
I'm looking at offloading and never buying investment properties again (established) from there on in it will be land and Vanguard managed funds
Thank god - hopefully this is a trend that continues. Property should not be an investment (comrade).
When you say landlords have no rights, you mean tenants finally get some.
Clearly two people who dont understand basic economics if no one invests in property rent goes up because supply will out run demand.
As for tenants my experience with tenants they deserve rights but if they want more rights they need to take greater responsibility and liability for the increased amount of freedom. Basically the rules need to be a lot harsh around those they dont pay on time or damage property and a lot looser on those who have done the right think there whole life.
I have found other landlords to just 'increase rent' on there tenants for little to no reason which i think is sometimes unwarranted but i have seen enough shit tenants to say that the good ones suffer because of the horrid ones
Just be careful what you wish for less people investing in property is actually bad for renters
I don't think rents go up if there are less investors. If all X number of investors sell overnight, the properties still physically exist though so that means X more owner occupiers which equals X less renters. Therefore supply and demand for rental accommodation remains in equilibrium.
If there are less investors, this equals less competition per property being sold which equals lower prices which equals more owner occupiers and less people renting because they couldn't afford to buy.
I find working full time to be way less hassle, pays a heck of a lot better too. Or did you mean the employees?