wazua Wed, Mar 25, 2026
Welcome Guest Search | Active Topics | Log In

7 Pages123>»
Passive income
Options
Previous Topic · Next Topic
Aguytrying
#1 Posted : Thursday, February 10, 2011 10:01:00 AM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
Dear wazuans, what forms of investment can generate a passive income that is higher than a middle class kenyans income, that would cover the expenditures of everyday life in kenya. Can stocks alone really do it? I intend to work less as i grow older, and have my passive income be enough for me n company. I was of the view that stocks could do it, but im not so sure. What are your views and or experiences. Thank you.
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  |
ProverB
#2 Posted : Thursday, February 10, 2011 10:21:47 AM
Rank: Veteran

Joined: 3/12/2010
Posts: 1,199
Location: Eastlander
Number 1 .. Rental Income

Number 2 .. Land revaluation..buy some plot by huge bypass junction..and chill out

Number 3.. Dividend income... how many safcom shares at4.50 giving sh 0.20 dividend do u need in a year to have a div cheque of 1M? smile
..Let your light so shine before men, that they may see your good works, and glorify your Father which is in heaven...Matt5:16
- 1769 Oxford King James Bible 'Authorized Version
Back to top
WWW
  | | Edit by user: Thursday, February 10, 2011 10:23 AM | Reason: Not specified
young
#3 Posted : Thursday, February 10, 2011 10:37:41 AM
Rank: Elder

Joined: 6/20/2007
Posts: 2,074
Location: Lagos, Nigeria
In addition for leverage purpose add the following o the list :-

(4) Investment in medium risk mutual fund
(balancee of stocks & Fixed income).

(5) Savings in hard currency

(6) Investment in bonds/Commercial papers etc


The above six models is actually my passive income strategy.
I thought investing fully on stocks will suffice, but of recent I did a rethink and re-balance of my assets.

All the above are necessary if you are getting old and wish to retire within the next ten years.
The wazua spirit as members is to educate and inform and learn from others within the limit of what we know in any chosen area irrespective of our differences in tribes, nationalities, etc. .
Back to top
  | | Edit by user: Thursday, February 10, 2011 10:41 AM | Reason: Not specified
redondo
#4 Posted : Thursday, February 10, 2011 11:08:02 AM
Rank: Member

Joined: 12/2/2009
Posts: 161
Location: nairobi
In my opinion, capital gains from stocks investment and even rental income don't count as passive income. Just ask Mukiha how passive it is chasing after your tenant to pay rent.
Back to top
  |
Aguytrying
#5 Posted : Thursday, February 10, 2011 1:48:25 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
@proverb, young. Thanks for clear concise answers. Capital gains from stocks alone cant do it for sure.
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  |
VituVingiSana
#6 Posted : Thursday, February 10, 2011 2:24:22 PM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
Let @stocksmaster manage your cash...
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  |
Tommy
#7 Posted : Thursday, February 10, 2011 2:36:53 PM
Rank: Veteran

Joined: 12/9/2010
Posts: 894
Location: Nairobi
redondo wrote:
In my opinion, capital gains from stocks investment and even rental income don't count as passive income. Just ask Mukiha how passive it is chasing after your tenant to pay rent.
Rental income can be stressing to collect, However you can sit down and enjoy by giving your building/Property to a trusted estate agent(s). Nowadays tenants respect agents and won't play hide and seek. @Aguytrying, Seriously consider the rental income option since it is long term.
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
Back to top
WWW
  | | Edit by user: Thursday, February 10, 2011 2:39 PM | Reason: Not specified
Aguytrying
#8 Posted : Thursday, February 10, 2011 3:58:17 PM
Rank: Elder

Joined: 7/11/2010
Posts: 5,040
VituVingiSana wrote:
Let @stocksmaster manage your cash...

there's an idea....
The investor's chief problem - and even his worst enemy - is likely to be himself
Back to top
  |
erifloss
#9 Posted : Thursday, February 10, 2011 4:48:24 PM
Rank: Member

Joined: 6/21/2010
Posts: 514
Location: Nairobi
1. Invest in high dividend yielding shares. They never disappoint in terms of capital gains and dividend payment. Take an example of BAT, it was around 60 in 2003 and its around 270 now and yet your dividends get through yearly.
2. High yielding bonds and commercial papers.
3. Real estate. Not only for the rental income but capital gain.
'They say money cannot buy me happiness but when i compare when i had none and now, i'm happier' Kevin O'leary
Back to top
  |
MaichBlack
#10 Posted : Thursday, February 10, 2011 5:23:03 PM
Rank: Elder

Joined: 7/22/2009
Posts: 7,845
I totally agree with everyone who is suggesting rental income. You must have at least one flat [not apartment!] by the time you retire!

The immediate problem is, how do you raise the cash to build a flat - without over relying on loans?

Step 1: Identify a good location where you want to build the flat and buy yourself a plot there soonest - Prices will not wait for you.

Step 2: Identify areas which have not completely opened up but have great potential and get yourself huge pieces of land at bargain prices. The sale of this land in future will partially finance your construction - Capital gains.

Step 3: Invest in the NSE and other avenues. You will use the gains to finance construction in future.

Step 4: [Which is actually step 0] - Define "future". When do you want to have your first tenants. This will inform 1 - 3 above.

NB: Rental houses can be as passive as passive can be. There are some tenants who have never seen their landlord - ever! Get a reputable agent and they will manage everything for you professionally!

Approach Two: Zawadi 2929 - When it finally comes back - "bigger and better".
Never count on making a good sale. Have the purchase price be so attractive that even a mediocre sale gives good returns.
Back to top
  |
7 Pages123>»
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua Investor Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.