WEALTHI > STRATEGIES > INVESTMENT
We estimate that more than half of your expenses are covered by your passive income. You have a solid foundation but still have a significant shortfall in your passive income. You can not leave your employment without significantly reducing your lifestyle.
You have assets providing you good passive income, but may not have solid asset growth or diversified, derisked income streams.
Your Investment Plan
The strategy here is to build on your portfolio, diversify and grow your income streams. You need assets with some capital growth and strong diversified passive income.
Since you have some passive income you need to make sure that you’re also getting growth and the passive income is not just coming from a single source. Your portfolio will continue to give you exponential returns and will also yield strong income growth to supplement the future potential risks you take in your investment strategy down the road.
Future Returns & Risks
At this stage, we’re looking to build on what's in place and cement some strong long term leases. The entry costs are high along with risk associated with occupancy rates but you will dramatically increase your passive income over the long term.
You will need a minimum of $150k. We target annual yields averaging +8%, annual capital growth of +3% and vacancy rates around 10-25%.
Commercial properties up to $1.5m
Target rental yield above 8%
Target annual capital growth above 3%
Vacancy rates of 10-25%
13 properties current available
Advanced residential and a mixture of commercial property is your best option here. Since you have some assets giving you good underlying income plus growth you can afford to take on more risk and move into properties with higher costs to enter but also larger income returns.
You will be using either equity or cash to enter into more advanced residential property options such as small developments and properties with multiple incomes 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.
Now that you have good passive income from residential and commercial assets you may now afford to take the leap into industrial assets with larger long term leases and returns but with the commensurate risks in occupancy rates.