Game Plan: Make an extra $90,000 in passive income a year

There are plenty of strategies an investor could use to get some clever property purchases, but how do you get there without working two jobs or skimping by on Vegemite toast every evening? Here’s an article on how to achieve $90,000 a year in passive income by 2020.

In this article on Your Investment Property Magazine (YIP Magazine), Empower Wealth construct a strategy for our investor who is on an annual income of $70,000 and owns no current properties. The strategy includes property investment in Melbourne area, regional and interstate; all within the investor’s budget limit.

But what will be the strategy that they are going to use? Here you go:

Investor purchases five properties over a four-year period, making sure the cash flow on each purchase is good enough to allow him to hold the properties on his modest salary. He takes loans with high LVRs and purchases properties are likely to outperform the average capital growth rates of their suburbs. This will get the investor to his target in 17 years not seven, but he will have done it relatively risk free.

Read to find out more!