How to get "rent" 6, xxx a month without a house 🏠
When it comes to the word passive income, or just lying there and having money in the account every month, I believe that the first hundred that comes into my head is "rented or rented," right? I'm the one who thinks so.
At the time, I had about $8 million, which was enough to buy a used house with land in the province, rent it for $4 to $5 a month, and wait for a comfortable payment.
But let me brake, because it's not that simple, so today I'm going to tell you why I think "dividend stock" is more interesting than renting a house for people who don't want to get a headache.
I have a close friend who bought a used house for $1.2 million and rented it for about $7 thousand a month, but from the first month he was rent-deducted by the tenant, and it wasn't enough to leave the house for a few months to rely on the hospital, and the headache wasn't enough to waste time.
I immediately changed my mind and tried to find the pros and cons so thoroughly that I discovered
"We need to know what we want." Of course, everyone needs money, right? But dividend stocks and rental houses are both completely different. To buy a rental house, we buy it and have to "take care," which means it has additional responsibility with income. I'll call it a job for short.
The problems we have to solve, the fussy of the renters, some months pay late, have to keep up with the good, bad, sneak away from paying.
Repair goodies, air conditioning is not cold, water pipes are leaking, roofs are broken...Who pays? We who own it have to gouge the repair bag. In summary, the real income is thought to be 4-5 thousand baht full rent, less the maintenance cost, less the time required. Only 3-4 thousand baht is left to the real bag. It becomes a job increase, and we are even more tired.
Now let's change the perspective, let's think of "dividend stock" as our real estate. If we take $8 million to buy a good basic dividend stock or two high dividend ETFs that yield 9-10% per year, the principal 800,000 x 9% dividend = 72,000 baht per year, let's divide it into 12 months = we get an average monthly return of $6,000.
But what's the difference? You know, when we finish buying, our job is "over." That's it. Our job is just to live normally every day. It's time for dividends to be transferred to our stock account. There's no job or job to be responsible.
Now let's look at the pros and cons. Both of these are fairly different. The first is liquidity. The stock is more liquid than the rental house. When we want our principal back, we just press the order to sell that stock in the app. Wait 2 business days, the money will be transferred back into our account. But the house announced the sale today. Do not know if next year will be sold, and have a headache about the commission, transfer, processing.
Second, risk. Stocks are always tied to risk with "economy." If a year is good, our profit companies grow our dividends as well. But if the year is bad, the dividends may also decrease according to the situation. Rental houses risk that if a month does not have rent = zero income immediately. But what continues to run is the cost of care. The wages of the people (in case they do not take care of themselves) need to reserve money during the rental period of 3-6 months. Do all kinds of accounting.
Read it until the end. Finally, I am not going to guide which one is better than which one, because all of the above are making money for us both, but we just have to ask ourselves, explore ourselves before deciding what kind of investment we are suitable for. Do you have enough time to take care of yourself? Can you do it all alone? Choose between passive income that is a job or no job?
At present, I still receive dividends from stock dividends every month, still working regularly, having the same sleep time.
What about your friends? If you have 8 hundred thousand, you can choose a rental house or a dividend stock? 💬
# Invest # Dividend stock # Investment finance # Lemon 8 Howtoo # lemon 8 diary
