Australia's Top 18 Passive Income Strategies

I have been conducting research into the numerous passive income generation opportunities available. Sadly, a good number of those that can be found on the internet won't work in Australia. As a result, I have compiled a list that is specific to those of us who live on the largest island in the Southern Hemisphere.

I've come up with the following solution:

1. An enterprise with few necessary resources 2 Investment in Private Residential Property 3 Shares 4 Blogging 5 Online course sales 6 Fixed-Interest Securities (Bonds) 7 Managed Funds / Exchange Traded Funds

8. Establishment of Ownership of Intellectual Property

9. The Obtaining of Licenses 10 A financial investment in commercial real estate 11 Private loans 12 Programs for affiliates 13 Peer to Peer lending 14 Tik Tok, or the channel on YouTube 15 Sublet surplus space 16 Joint Venture referral programs 17 Sell stock images

18. Start a career as a writer on Amazon.com.

If you want to achieve financial independence and gain the choice in life that is the goal that we have here at Financial Autonomy, then it is very helpful if some or perhaps all of your living costs can be met without you needing to put a finger to a keyboard, smile at a customer, or do anything else that requires you to interact with other people. or make a hole for the purpose of installing something or other.

The key to accomplishing this result lies in the generation of passive income.

It is essential to understand that the creation of passive income will, in some form or another, necessitate an extensive amount of work in the beginning. For instance, our third choice, which is to purchase shares, can generate a wonderful passive income for you in the form of dividends; however, in order to have the capital necessary to purchase those shares, you will first need to work and save up some money.

You don't need to have a ton of savings if you want to start something like a YouTube channel or an online course, but you do need to put in a lot of work right from the beginning to create the content for it.

Therefore, passive income is not the same as free income. However, it is a form of income that can be produced through deliberate thought and planning by individuals who are willing to take a break from the drudgery of daily life in order to pursue their goals.

Let's delve deeper into the following 18 business opportunities that I've found to be viable for our company right here in Australia:

1. A company with few required inputs

Consider in this context a coin-operated laundry, some vending machines, and even a do-it-yourself car wash facility. It could even be something as simple as managing an AirBnB property (here's an extreme example to whet your appetite). Your hours are the "low input" I'm referring to in this context.

All of these call for an initial financial investment in addition to ongoing management and attention. You could hire people to do some of the menial tasks, such as restocking the vending machines or mopping the floor at the laundromat. Examples of these tasks include:

These companies benefit from the trend toward a cashless society because it makes them more secure; the elimination of cash that is left sitting in machines reduces the likelihood that it will be stolen or vandalized.

I got to know a guy who had a great low-input business, which consisted of installing vintage pinball machines in hip cafes and offices. He was responsible for their maintenance and would switch the locations of the machines every few months in order to maintain a high level of interest. He was able to amass a sizeable fortune while simultaneously delighting in his work.

2. Financial Investment in Residential Property

Becoming a landlord is a tried and true investment strategy.

To enter the residential property market in Australia, borrowings are likely to be required. As a result, even at the exceptionally low interest rates that are currently available, the cash flow that is generated from rental income will likely be consumed by loan repayments in the early years of the investment. However, this debt will be paid off over the course of time, and your rental income is likely to increase over time as well, which will eventually result in your real estate investment producing a surplus of cash. To reap the full benefits of this passive income source, you must keep it for a sufficient amount of time and see that the debt is paid off.

The role of landlord does not come without its share of headaches. Properties degrade over time, and tenants don't always treat your real estate with the kind of reverence you'd like to see from them There are also ongoing expenses, such as those for the insurance and council rates.

Those with some "handyman" skills appear to be in a particularly advantageous position when it comes to investing in residential property. I know of residential property investors who were able to make relatively minor improvements to properties that they bought, such as updating a kitchen or replacing a pergola that had rotted away, and as a result, they were able to significantly increase the value of the property. As a result, they have been able to raise the rent to a more competitive level while simultaneously attracting higher-caliber tenants.

A short while ago, I had the opportunity to speak with Geoff Grist, the author of the book "Flip for Cash," about how to achieve success when purchasing, renovating, and then selling investment properties in Australia. Have a listen to it over here:

3. Shares

Possibly the most passive of all possible investments, since all that is required of the investor is to purchase the company's stock and wait for the dividends to be paid out. Unlike most real estate, there is no need to worry about any kind of maintenance or costs like insurance; all you have to do is buy it and forget about it.

Investing in stocks and shares allows for simple diversification. This indicates that you can lessen the likelihood of losses and strengthen the robustness of your passive income stream. The ability to diversify your holdings is one of the most significant advantages of creating passive income through share investment. You can accomplish this by purchasing a fund, such as an exchange-traded fund (ETF), or you can simply buy shares in a variety of companies and industries to include in your portfolio.

You can get your feet wet in the stock market with a relatively small financial investment. In most cases, an initial investment of $2,000 is sufficient; however, it is important to keep in mind that this is money that you shouldn't anticipate needing for at least five years. And in contrast to real estate, there is no need to take out a loan in order to enter the market.

In the event that life deals you a bad hand, you can always sell your shares and have the money in your bank account in as little as three business days. Another benefit of investing in shares is that they are wonderfully liquid. Incredible, to say the least

We have compiled a toolkit on how to get started with shares, which you might find to be helpful. Get a free copy of it here.

4. Blogging

Having a knack for writing and being familiar with modern technology Blogging could be a potential source of passive income for you, which you could pursue. Now, how "passive" this one is is debatable – certainly there is a lot of work initially to create content and attract eyeballs to that content, but those who do it successfully can keep the advertising revenue rolling in with relatively minimal hours each week after the initial establishment push. Now, how "passive" this one is is debatable – certainly there is a lot of work initially to create content and attract eyeballs to that content. The problem that people need to make an effort to go to and visit a traditional blog is something that is being addressed by a growing trend toward the integration of blogging and email newsletters. Instead, they receive a prompt in the form of an email in their inbox.

Look for a specific topic to write about when you are planning your blog; you want to create content that people will look up on Google and for which you have a good chance of ranking on the first page. That is not easy. You don't want to go up against major publishing houses and media organizations. Look for a more intimate group for which you can produce useful content and search for it.

Gathering Dreams, for instance, is an excellent example of a blog. You can see that she makes money through the advertisements that appear at the bottom of the posts as well as the affiliate sales that occur on the Things I Love page and within the posts themselves.

If you have an interest in blogging and want to learn more about it, you might find it helpful to subscribe to the excellent YouTube channel that the folks at Income School produce.

In this episode of my podcast, I had the opportunity to speak with blogging guru Sharron Gourley about how she was able to turn blogging into her full-time source of income:

5. Online course sales

Are you an expert in a particular field? Have you put in the recommended 10,000 hours of practice that Malcolm Gladwell recommends in order to become an elite performer? Then perhaps developing an online course will be your ticket to a passive income in the future.

The fastest and most convenient way to learn new information is by taking advantage of online classes. They have the same effect as pressing the fast forward button. You could certainly do a bunch of searching on Google and YouTube, and you would probably figure it out in time (a lot of time). ) You also have the option of spending a few hundred dollars to have the essential details that you require organized in a way that is easy to understand and can be put into practice right away. In addition, you will not make any of the numerous mistakes.

The publication of online courses is made easier by platforms such as Teachable, Kajabi, and Udemy.

6. Bonds and other forms of fixed interest

Although not the most appealing of the ways to generate passive income streams, this is another option that, like investing in stocks, is very passive indeed. Those who are uncomfortable with taking risks can benefit greatly from the high levels of capital security that it provides.

Bank term deposits are the entry point that is easiest to understand and most readily available. You can invest any extra money that you have here for a predetermined period of time, which can range anywhere from three months to several years. During this time, you will not be able to access your funds, but in exchange, you will be rewarded with a higher rate of interest than you would get on your regular checking account because your savings account will not be used.

Bonds are an institutional form of debt financing, and their terms are typically measured in years rather than months. Because of the high minimum investments, the vast majority of us are unable to invest directly in bonds. On the other hand, we can invest in bond funds through exchange-traded funds (ETFs) and managed funds.

Be aware, however, that the value of your investment in a bond fund will fluctuate as a result of changes in global interest rates, which will have an effect on the value of bonds held within the portfolio. This is an important fact to keep in mind. When compared to a term deposit, which provides investors with the assurance that the amount they deposit will be returned to them in full at the end of the deposit period, a mutual fund's level of volatility is typically lower than that of a share fund. However, the fact that a mutual fund even exists is a significant point of differentiation between the two.

7. Managed Funds and Exchange-Traded Funds

There isn't an easier way to earn passive income than by investing in ETFs and managed funds. If you invest your money in these funds, the only thing left for you to do is spend the distributions, which will come either once every three months or once every six months, depending on which option you choose.

Both managed funds and exchange-traded funds (ETFs) invest in a wide variety of assets, including stocks, properties, and bonds. They have the option of concentrating on Australian assets or those located elsewhere. In addition to this, they can concentrate on particular economic sectors or invest in accordance with a particular theme, such as ethical investment.

You also have the option of purchasing funds that contain a diverse assortment of assets. It's likely that one of these types of funds, such as Balanced, Growth, or another, is held in your superannuation account. They give you the ability to adjust the level of risk that your investment carries, so that it is aligned with your comfort level and the time frame that you are investing for.

Both managed funds and exchange-traded funds (ETFs) incur expenses; it is obvious that the fund manager is not performing their duties pro bono. Therefore, before you put money into something, make sure you fully comprehend the expenses. If you are unsure, it is best to seek the advice of a professional.

8. Establishment of Ownership of Intellectual Property

From Guns and Roses to J.K. Rowling to the Beatles, the process of producing a piece of work and subsequently selling it to the general public has proven to be a path to passive income, which, in the event of extraordinary success, can prove to be extremely lucrative.

Back in episode 81, Joanna Penn discussed how she transitioned from being a business consultant to becoming an author of fiction and non-fiction books, and how she is now able to make a six-figure income from the work that she has produced as a result of her efforts.

The term "intellectual property" (IP) refers to a variety of different assets, some of which include writing, music, design, inventions, and software.

Because the world is now almost entirely digital, the ability to turn intellectual property assets into cash has increased dramatically.

There are also solutions to the problem of getting your creation out into the market that can be found on platforms such as Kickstarter and Amazon Kindle Direct.

The use of intellectual property to generate passive income is undeniably a practical option for achieving passive income. It requires work up front, but the potential rewards over the long term can be significant. This is typical of many of these opportunities.

My first real foray into the world of passive income through intellectual property was writing my book, Financial Autonomy: The Money Book That Gives You Choice. The experience of writing a book was amazing, and if you've ever considered putting your thoughts into print and sharing them with the world, I can't recommend it highly enough that you give it a shot. Amazon makes it quite easy to self-publish your own ebook, so many of the traditional barriers to entry have been removed. If finding a publisher is too daunting of an endeavor for you, self-publishing your book on Amazon is a great alternative.

Here is a link to a free download of the first chapter of Financial Autonomy, the money book that puts choice in your hands.

9. The Obtaining of Licenses

The process of renting out your idea to a company so that they can handle production and marketing is known as licensing. It is an excellent method for bringing your ideas to the market in a short amount of time, with a low financial investment and a low level of risk. Additionally, it is a good fit for people who are creative but don't particularly enjoy the idea of running their own business.

Let people tinker away in their shed or on their computer, and if it comes to naught, the company has lost nothing. This is how licensing works for the businesses involved because it allows them to save money on research and development.

Typical royalty rates range from three percent to ten percent of wholesale sales.

One Simple Idea, written by Stephen Key, is widely considered to be the best book on licensing.

10. an investment in commercial real estate

Residential real estate is typically the type of property that comes to mind first for most of us when we think of investing in property. However, the commercial real estate market is a viable alternative that can provide numerous advantages to individuals who are interested in passive income.

The fact that the tenant is responsible for all of the property's costs and maintenance is the most important advantage of commercial real estate. When you own a commercial property, as opposed to a residential one, you are not required to make improvements such as painting the interior or replacing the dishwasher.

Because of the larger deposit that is typically required by banks when purchasing commercial property, you will need to have significant savings that are ready to be invested before entering this market. The advantage of this requirement, on the other hand, is that commercial properties have a greater propensity to generate positive cash flow relatively quickly. This is because the majority of lease agreements include an annual increase that is typically somewhere around CPI.

The fact that it can take a significant amount of time to find a new tenant when an existing one vacates a commercial property is the primary disadvantage of investing in commercial real estate. In order to be able to weather this storm, you are going to need to have adequate cash reserves. On the other hand, once you find a good tenant, they will typically remain in your rental property for a considerable amount of time. For some companies, their reputation comes to be closely associated with their physical location; this is especially true of businesses that serve food, such as cafes and restaurants. Tenants of commercial real estate also frequently have to make significant investments in set-ups, and as a result, once they have done so, they prefer to remain in place.

Because lease terms typically extend for at least five years, quality tenants who make their payments on time can be an extremely reliable source of cash flow for an investor provided certain conditions are met.

The market for commercial real estate has been significantly influenced by COVID. Warehouse space that is suitable as a base for online deliveries is in high demand, in contrast to the abundance of office space available in the CBD.

11. Private loans

Australia: A Passive Income Source

These are loans that are typically given to property developers and can be obtained through solicitors. They typically have terms ranging from 12 to 24 months and frequently involve some form of mortgage security being provided. The returns are higher than the interest rates offered by banks, but the risks are obviously also higher. They are typically the domain of wealthy investors, but if you have sufficient liquid assets at your disposal, it might be worthwhile to investigate them.

When I asked a lawyer about this, I was told by someone whose company dealt with a lot of these types of cases that the lawyer had never seen a loan where the principal wasn't paid back (although this doesn't mean that it never happens). But he's seen a lot of situations in which the loan period gets extended because the project doesn't go exactly to schedule. He's also seen some instances in which lenders had to accept a lower interest payout at the end of the term because things didn't quite work out as planned. In other words, he's seen a lot of situations in which the project is delayed.

So this is an option that you could look into; however, you should make sure that you are adequately compensated for the risk, and you should ideally try to diversify your investments across a number of different borrowers.

12. Affiliated businesses and programs

I have no doubt that you have encountered a great number of examples of affiliate marketing while browsing the internet.
When the host of a podcast directs you to go to www. buythistuff com/thispodcast for 10% off the regular price, which is an example of affiliate marketing, and they will receive a commission from each sale that is made.
In a similar vein, the majority of blogs will include links to either books that can be purchased on Amazon or a software product that has a mailing list to which users can subscribe. All of these are viable avenues through which a person who has some publishing talent can construct a passive income stream for themselves.

Affiliate programs have the potential to be an excellent solution for everyone involved. The content creator earns a following in a specific niche through their work. They earn customers' trust, and as a result, in most circumstances, they won't want to promote an inferior product. They take on the role of gatekeepers. Their following is aware of this, and as a result, they have faith in the creator. Therefore, they are guided toward goods and services that have a high probability of being suitable for them and of having a high standard of excellence. In addition to this, the manufacturer of the product is given the opportunity to showcase their wares to a demographically precise audience.

Affilorama recommends following these 7 steps in order to make your first sale through affiliate marketing: 1) Define your market segment. 2) Conduct research on a variety of affiliate programs and products. 3) Construct a web page 4) Produce excellent content 5) Build an audience 6) Advertise the products that you are an affiliate of. 7) Proceed with the process described in steps 4-7 on an ongoing basis.

Check out this conversation I had with Nick Loper of The Side Hustle Show about the Qualities Necessary for Running a Profitable Side Business.

13. Peer to Peer lending

Eliminating the need for a financial institution to act as a broker is the essence of peer-to-peer lending. It's not a huge deal in Australia, but Australia's historically low interest rates on bank deposits could be a driver of economic expansion. Peer to peer lending was reported by ASIC to have resulted in the provision of loans totaling $300 million during the 2018/19 fiscal year.

Several different peer-to-peer lending platforms offer facilities that facilitate the pairing of those who have surplus cash with borrowers. Personal or business use could be the motivation behind a loan.
In many cases, the platforms will enable you, as the investor, to fund smaller portions of multiple loans. This will allow you to spread your risk across a larger number of loans.

Peer to peer lending unquestionably has the potential to generate a passive income stream for investors, providing monthly cash flow as their loans are repaid. Peer to peer lending is also known as marketplace lending. Simply put, you want to make sure that the return you are receiving adequately compensates you for the level of risk you are exposing yourself to. You would also want to be certain that the money you are lending to someone won't be needed in the near future. This is another important consideration. If you lend your money to someone for a term of five years, you cannot decide one year later that you have changed your mind and demand that they return your money.

If you are interested in delving deeper into this topic and would like some reading material, MoneySmart has a post on peer-to-peer lending that you should check out.

14. Create a channel on Tik Tok or YouTube

Who would have guessed, twenty years ago, that it would be possible to create your own television program, have it viewed by billions of people, and be compensated, sometimes handsomely, for doing so?

PewDiePie, a Swedish gamer, is estimated by Forbes to have made $15 million in 2018, while Ryan's Toy Review, a channel on which Ryan, age 8, and his siblings review toys, made $22 million in the same year. PewDiePie is a Swedish gamer.

If you're skilled in the production of videos, starting a channel on either YouTube or TikTok could be your ticket to earning passive income. You can get some ideas for content to upload to YouTube by reading this excellent blog post, which is full of suggestions in that regard.

15. Sublet surplus space

My company, which provides financial planning services, has an office that is never used. I assigned John, who is a Fire Engineer, to be in charge of it. It turned out to be a fantastic outcome for everyone involved. Everyone in the office benefits from increased social engagement and diversity, including me, who receives some extra cash, John, who receives a comfortable work environment outside of his home, and anyone else who works there.

I did the same thing with an extra parking spot that I had available.

One of my customers ran his company out of a warehouse, and he rented out some unused space in the building to a friend so that his friend could keep his caravan there.

16. Joint Venture referral programs

Affiliate programs in their modern form have really come a long way from this version.

There are a lot of companies that offer commissions for referrals or spotters to people who can bring in new customers.

I've seen examples of consultants who earn commissions for introducing a cash-ready buyer to a business owner who is looking to sell, as well as accountants who get a cut of the revenue generated when they refer a client to a mortgage broker or financial planner. Other examples include real estate agents who earn commissions for introducing a buyer to a property. or those involved in real estate promotion who are paid a commission by the developer for their services.

In most cases, they originate from the fact that a specialist in one field has customers who frequently require a service that the specialist does not provide. They form joint ventures with other complementary service providers that they trust in order to provide their customers with a solution that is seamless and all-encompassing. As part of this arrangement, they share revenue with one another.

If you own a company, what kinds of goods or services do your clients and customers most frequently require? Could you get in touch with a company that offers those services and discuss the possibility of working together to create a situation in which you and the other company both benefit?

17. Sell stock images

According to Jim Harmer of Improve Photography, the average monthly earnings for stock photos range from 25 cents to 45 cents per image. At that rate, in order to make anything that resembles a significant amount of money, you're going to need a lot of images loaded up. The positive side of this, however, is that if photography is your thing, you can load up images that you already have – they're just taking up space on your hard drive. This is a great feature if you're a photographer. Once you have everything you need, there is nothing else for you to do; this is true passive income.

Because I've read that stock video is a rapidly expanding market, I think it's important to look into that possibility as well.

There's certainly nothing wrong with the possibility that this one only pays for the month's worth of your gym membership.

Check out iStock, Shutter Stock, Adobe Stock

You could find our one-page business plan for a side hustle to be helpful.

18. Start a career as a writer on Amazon.com.

Because of Amazon's enormous market share and the advent of Kindle Direct Publishing, all of us now have the opportunity to see our writings appear in print. You can pursue your passion for writing while also building a following, promoting your book on the platform, and making money. What a fantastic era we find ourselves living in.

Now it's up to you to decide which method of generating passive income you'll pursue.

These are some wonderful ideas. If so, you're going to adore my weekly email titled GainingCHOICE. Sign up for our free newsletter here.

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