Passive income

Methnerd
Methnerd

I have 210,000 GBP

I want a stable annual income to pay my rent.

What are your suggestions?

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Skullbone
Skullbone

get a job

Emberfire
Emberfire

@Skullbone
title is passive income
brainchild suggests getting a job

he already has money; he's asking how to get his money to work for him.

OP, how much in passive income are you looking for?

Firespawn
Firespawn

@Skullbone

I am currently a student at a university

SniperWish
SniperWish

@Emberfire

Hi. Looking for around 8-9% annual yields

TurtleCat
TurtleCat

Buy 3 houses, 50k deposit each with interest only mortgages and rent them out. If near a university gut them and make as many bedrooms as possible.

VisualMaster
VisualMaster

@TurtleCat

I was thinking about property, but have little knowledge. Would you say purchasing one bedroom flats in cities like Sheffield without a mortgage or using a mortgage to buy to let?

DeathDog
DeathDog

@SniperWish
You could host a bitcoin faucet in a box and get ad revenue as pajeet begs for satoshi.

https://faucetinabox.com/

JunkTop
JunkTop

tc you probably have the most retarded pic ive ever seen on Veeky Forums

GoogleCat
GoogleCat

@Methnerd

1/3 in Vanguard Total Stock Market ETF (VTI)
1/3 in Vanguard Total International Stock ETF (VXUS)
1/3 in Vanguard Total International Stock ETF (VXUS)

Pay rent with dividends.

Ignoramus
Ignoramus

@GoogleCat

Last 1/3 should be Vanguard Total Bond Market ETF (BND)

Lunatick
Lunatick

@Ignoramus

What annual % approx would I get?

The markets are completely fucked at the moment, im a bit skeptical..

This being said more interested in property in the UK, however can not take out a buy to let mortgage because I am a student and have no income in theory

Spamalot
Spamalot

210,000 GBP

That's like $100 right now

BinaryMan
BinaryMan

@VisualMaster
REITs are probably just as good for you; if you want true passive income, you're going to want to pick up a couple diversified REITs; typically they'll get you 5-7% of pretty consistent dividends per year.

The key advantage of owning your own property is likely leverage; you can get a mortgage for $600k in houses easily, and in doing so, you can potentially earn a slightly higher retun on investment. However, if you're not smart about the way you rent out these places, you'll find yourself with much higher expenses due to repairs/evictions/fines, etc.

It's much easier to go with REITs.

Alternatively, I've heard that lending club is a serviceable way to earn decent income by helping refinance other peoples' debts. Depending on the risk you're willing to take on, you could potentially earn 8-10% doing that.

At any rate, 8-10% ROI is very difficult to do consistently; broad market investment is probably closer to 5-7%, and a much more reasonable goal for a completely passive investment, imho.

Ignoramus
Ignoramus

@Lunatick
markets aren't fucked. They'll likely recover from the current crazy in short order.

If you're already invested in the markets, stay invested. It's unlikely they'll drop further, and the longer things go on with brexit shenanigans, the more it looks like the brexit might just be unreasonable. Britain just relies on the EU for too much in terms of trade negotiations and currency stability.

Fried_Sushi
Fried_Sushi

@SniperWish
index funds
long term nothing is better hassle free

Lunatick
Lunatick

Thank you for the insightful responses, will take this into account.

@Fried_Sushi
@Ignoramus
@BinaryMan

Garbage Can Lid
Garbage Can Lid

@Lunatick
Wait a bit more. Some property funds are blowing up across the U.K. and the banks with most exposure are having heavy losses on their stocks. Property is probably going to fall in value in the upcoming months. You can buy at a discount and wait for prices to raise before resting.

MPmaster
MPmaster

@Garbage Can Lid
*renting.

kizzmybutt
kizzmybutt

Get some chicken tendies.

Snarelure
Snarelure

@BinaryMan
REIT 5-7% dividend

REITs aren't worth the risk for only 5-7% yield. The stock prices are way too volatile. Better option is to buy a high yield bond fund that pays 5-7% instead like HYG that is more price stable than REITs. And if you're in the states, there are muni fund that pay out closer to 8% because they're tax free

JunkTop
JunkTop

@SniperWish
Buy Lloyds Banking Group and Persimmon. They're very undervalued right now and offer great dividends. Won't go under. Good money. Allocate £100k to each.
Blow £10k on rent to cover you until dividends pay.

GoogleCat
GoogleCat

@JunkTop
@Lunatick
I'm a Bong too OP you can trust me. :^)

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