WEALTHI > STRATEGIES > INVESTMENT
We estimate that you are earning between and a quarter and half of your expenses in passive income. You have a good foundation but still in a vulnerable position and probably can't afford to leave your current employment without tapping into your savings.
You have some assets providing you passive income, but may not have good asset growth or diversified income streams.
Your Investment Plan
The strategy here is to build on your foundation and diversify your income streams. You need assets with good capital growth and strong diversified passive income.
Since you have some passive income you need to make sure that you’re also getting good growth and the passive income is not just coming from one source. This foundation will continue to give you exponential returns and will now start to yield strong income growth to supplement and potential risks you take in your investment strategy down the road.
Future Returns & Risks
Residential properties up to $1.2m
Target rental yield above 6%
Target annual capital growth above 5%
Vacancy rates of 5-15%
28 properties current available
A mixture of residential and commercial property is your best option here. Since you have some assets giving you good underlying income plus growth you can afford to take some more risks and move into property with higher costs to enter but also a larger return on income and growth.
You will be using either equity or cash to enter into more advanced residential property options such as small scale developments to create equity and higher yields. You will also be looking at commercial property options such as, retail, offices and gyms to boost your passive income.
At this stage, we’re looking to take on more risk by creating equity and maximizing your passive income. The entry costs are high but you will start to dramatically increase your income.
You'll need a minimum of $100k. We target annual yields averaging +6%, annual capital growth of +5% over the long-term and vacancy rates are in the order of 5-15%.