• Media type: E-Article
  • Title: An investment decision: Expected and earned yields for passive income real estate investors
  • Contributor: Niti Rattanaprichavej [Author]; Monthinee Teeramungcalanon [Author]
  • Published: Abingdon: Taylor & Francis, 2020
  • Language: English
  • DOI: https://doi.org/10.1080/23311975.2020.1786331
  • ISSN: 2331-1975
  • Keywords: investment decision ; real estate ; expected yield ; earned yield ; passive income
  • Origination:
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  • Description: This study aims to analyse the demographic characteristics of real estate investors and their attitude towards expected and earned yields when making direct, indirect, and non-real estate passive income investments. Quantitative analysis is employed based on both online and offline survey data from 334 real estate investors. Results reveal that general investor characteristics such as gender, education, and marital status tend not to affect investment decisions. Moreover, investors' earned yields from any investment type are mostly lower than expected yields. However, the results also reveal that direct real estate investment has a higher probability of earning higher yields and a lower probability of earning poor yields than indirect real estate and non-real estate investments. Although most investors believe that passive income is the key to achieving financial freedom, few are successful in earning excellent yields. This demonstrates the difficulty of attaining financial success through passive income investments alone. Therefore, active income remains necessary to enhance an investor's passive income portfolio in the pursuit of financial freedom.
  • Access State: Open Access
  • Rights information: Attribution (CC BY)