As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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Saturday, 20 May 2017

Cash Flow : Rental Income From One Investment Property vs. Dividend Income From Portfolio Of Stock?


Read? Property or Stocks???


What is the drastic difference?

Rental income from ONE investment income is Binary while dividend income from portfolio of stocks is NOT!





8 comments:

  1. What if you have both?

    But if you die, die want to invest in bricks & motor, Reit is a better choice.

    ReplyDelete
  2. Depends on what's the property and which are the stocks also ah

    ReplyDelete
  3. It's all about diversification. Throwing all or most of your retirement funds into 1 or 2 properties is similar to buying just 1 or 2 stocks (individual companies, not ETFs or REITs). Most people don't have the $$$$$$ to build a portfolio of 20-50 properties diversified across sectors (residential, office, industrial, etc) and geography across different cities around the world. For e.g. while rentals are in the doldrums in SG, it is fairly booming in NY, LA, SF, London, Sydney.

    Most Sinkies who bank on property for retirement end up triple-concentrated --- asset (property and just 1 or 2 buildings/units), sector (usually residential), and geography (dependent on SG economy).

    I have a small freehold condo in a central location for rental purpose, but it's more for "fun" and for wife to play landlord. We bought it at lows in 2004 when we were more naïve in investments & also due to strong encouragement from both sets of parents.

    I find operating a rental property requires quite a bit of hands-on. It's a part-time job at least and definitely not "passive income". We put in more effort to maintain the rental property than even our own home. But then I'm a lazy ass and thankfully my main retirement income comes from ETFs & dual momentum which is much more "passive".

    ReplyDelete
    Replies
    1. If you are willing to pay, you can find a good housing agent who can take care of everything for you; For years.


      You just have to monitor what's going on and make the final decision.

      Just make sure you are not short-changed.

      ///

      Of course when you have 20 to 30 properties, you definitely need a good housing agency not an agent anymore.

      Then the agency may make some of the final decisions for you.

      And if you don't like some of the decisions, you just change agency lol.

      Another words, 20 to 50 properties have to run like company not as an individual owner of 1 or 2 properties.

      Delete
    2. Incidently, are you SPR or newly Mint citizen?

      Or are you Honkies?

      Some people may feel offended if addressed as Sinkies or Honkies.

      Delete
    3. Me i am called "Tong Chez" by many people.

      Or at least i suspect in their mind.

      Delete
    4. Heheh, me true-blue freaking Sinkie, 2.5yrs armoured infantry. Trained using the old M113s. At that time newly installed 40mm auto-grenade launchers and Milan ATGMs. The Milans were real mother-Fs to carry & run with, worse than running with the 15kgs fully loaded GPMGs. Still remembered signing for my 1st $90 NS allowance on Pulau Tekong. Cursing thru the red dust & red mud of Sungei Gedong. Getting lost in the Australian outback & having to navigate a lone M113 with 7 men thru 200km of desert using map & compass. Basically S'pore taught me more how to shoot & kill and fire & movement. Coz I forgotten most of my Uni stuff liao. Ahhhh those were the days!!! :) :)

      Delete
  4. The giant shipping and packaging company is good for landlords and undoubtedly, they will be employing many workers who need housing to rent from you, if you own a rental in the area. real estate investment management

    ReplyDelete

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