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

7 Pages<1234>»
Passive income
Options
Previous Topic · Next Topic
Tommy
#11 Posted : Thursday, February 10, 2011 5:55:44 PM
Rank: Veteran

Joined: 12/9/2010
Posts: 894
Location: Nairobi
MaichBlack wrote:
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".

@maich good tips and nice 2929 joke Laughing out loudly Laughing out loudly Laughing out loudly
Don't wait for the Last Judgment. It happens every day. ~Albert Camus, The Fall, 1956
Back to top
WWW
  |
qw25041985
#12 Posted : Thursday, February 10, 2011 7:13:11 PM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
Tommy wrote:
MaichBlack wrote:
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".

@maich good tips and nice 2929 joke Laughing out loudly Laughing out loudly Laughing out loudly



hahaha. Or try charity sweepstakes !
Your future depends on your dreams so go to sleep !
Back to top
  |
qw25041985
#13 Posted : Thursday, February 10, 2011 7:16:11 PM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
@ aguy u might not love this. but try fx ....NOT day trading.Where u make your profits in two hours or so .But having a long-term approach. Has allllot of money trust me...
Your future depends on your dreams so go to sleep !
Back to top
  |
Ceinz
#14 Posted : Thursday, February 10, 2011 10:56:59 PM
Rank: Veteran

Joined: 5/7/2009
Posts: 1,032
Location: Sea of Transquility
MaichBlack wrote:
I totally agree with everyone who is suggesting rental income. You must have at least one flat [not apartment!] by the time you retire!

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!



Maich black its 'A block of flats'

True, im a tenant who's never seen my landlord. We just pay in her account (I envy this) and the agent collects the slips.

If u got the capital, this is a pretty good investment.
“small step for man”
Back to top
  |
gatoho
#15 Posted : Friday, February 11, 2011 4:45:29 AM
Rank: Member

Joined: 1/1/2010
Posts: 518
Location: kandara, Murang'a
Aguytrying wrote:
VituVingiSana wrote:
Let @stocksmaster manage your cash...

there's an idea....



I tried that and he declined me.. Passively at least but still declined! mebbe I'll plant a million cabbages
Foresight..
Back to top
  | | Edit by user: Friday, February 11, 2011 4:47 AM | Reason: Not specified
qw25041985
#16 Posted : Friday, February 11, 2011 8:06:04 AM
Rank: User

Joined: 5/9/2010
Posts: 1,418
Location: Nai
I think you cannot go wrong with land and real estate...Donal Trumph made his fortune out of real estate. John Gandel made his fortune out of real estate.Richard LeFrak, Brad Kelly , B. Francis Saul II the list goes on and on and on...do a google search..
Your future depends on your dreams so go to sleep !
Back to top
  |
VituVingiSana
#17 Posted : Friday, February 11, 2011 8:20:12 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
Lakini... The richest chaps:

Bill Gates - Software
Warren Buffet - Insurance & Investments [various]
Carlos Slim - Telecommunications + others
Michael Dell - Computers
Ambani Brothers - Textiles & Chemicals
Lakshmi Mittal - Steel
Sunil Mittal - Telecommmunications (Airtel)
Sergey Brin & Larry Page - Google

And you do not need to google most of these!

Donald Trump's net worth is like pocket change the many of the guys in the list!
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  | | Edit by user: Friday, February 11, 2011 8:21 AM | Reason: Not specified
Ceinz
#18 Posted : Friday, February 11, 2011 10:09:37 AM
Rank: Veteran

Joined: 5/7/2009
Posts: 1,032
Location: Sea of Transquility
Lets not lose focus here, we are not trying to topple/ find our way to the billionaires list, what we are looking for is PASSIVE INCOME. Real estate still is king.
“small step for man”
Back to top
  |
VituVingiSana
#19 Posted : Friday, February 11, 2011 10:22:42 AM
Rank: Chief

Joined: 1/3/2007
Posts: 18,351
Location: Nairobi
Ceinz wrote:
Lets not lose focus here, we are not trying to topple/ find our way to the billionaires list, what we are looking for is PASSIVE INCOME. Real estate still is king.

When times are good... Real Estate is king but if you buy using a loan [15%] then your rental return is only 6% = The 9% shortfall can hurt unless property prices rise 9% per annum.

If the flat remains empty for 1 month, that is a net loss as well.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
Back to top
  | | Edit by user: Friday, February 11, 2011 10:34 AM | Reason: Not specified
madhaquer
#20 Posted : Friday, February 11, 2011 11:03:40 AM
Rank: Member

Joined: 11/10/2010
Posts: 281
Location: Nairobi
Rental income is good, but what is important is to understand that before any investment becomes 'passive' the amount of time and hardwork put into it is proportionate.

In the real estate case, you need to go out scout for quality locations, make money to buy land, spend time with contractors, spend in marketing and insurance, and eventually dealing regularly with the agent and renovating etc... This actions are what really determine that the passive income will keep coming in.

Another form of passive income which is an extension to the stocks idea is owning a large chunk of a company and sitting on it's board. (not actively managing it). This also works in the case of being a silent partner to a trusted and hardworking entrepreneur.
Also Boards of directors in large companies have annual honorariums of over a million in addition to other director's fees. If you are well connected you can be invited to sit on a board just by lobbying.
Back to top
  |
7 Pages<1234>»
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.