Economic changes in Australia over the past year have significantly changed the investment equation for some compelling ASX shares, with tax changes and higher interest rates.

Changes to negative gearing have made many residential property investments less compelling. Meanwhile, changes to the capital gains discount have made capital gains-focused investments a little less compelling too, when it comes time to sell that asset.

Therefore, commercial property with a focus on income returns could be an excellent buy, particularly following all of the interest rate rises this year, with the valuation discounts that have opened up with some ASX shares.

Four real estate investment trusts (REITs)

There are four REITs that are particularly attractive to me right now.

Two are focused on industrial properties – Centuria Industrial REIT (ASX: CIP) and Dexus Industria REIT (ASX: DXI). Industrial properties have tailwinds for demand like e-commerce adoption, data centres and onshoring of supply chains.

A third REIT I like is farmland owner Rural Funds Group (ASX: RFF). We all need food and the REIT has rental indexation built into its contracts.

The fourth REIT I really like is Charter Hall Long WALE REIT (ASX: CLW), a very diversified option that’s invested in a wide array of properties. It also has contracted rental growth, with fixed increases or rises linked to inflation.

Strong dividend yields

Consider this: many residential properties offer a negative net rental – also called negative gearing, including the likely interest payments. Commercial properties, on the other hand, have a very positive yield. It’s a clear win for income investors, in my view.

Each of the REITs has a dividend yield that’s competitive with or superior to that of term deposits (despite the higher interest-rate environment).

Based on their FY26 payouts, these are the current distribution yields for the ASX shares:

• Rural Funds has a 5.3% distribution yield
• Centuria Industrial REIT has a 5.6% distribution yield
• Dexus Industria REIT has a 6.6% distribution yield
• Charter Hall Long WALE REIT has a 6.9% distribution yield

Big discounts

One of the best reasons to like these REITs is that they are trading at a significant discount to their underlying value.

These ASX shares report a net asset value (NAV) or net tangible assets (NTA), which tells us what the net figure of the property valuations, the loans, cash and so on are worth.

They look great value compared to their December 2025 figures. Higher interest rates may have hurt investor confidence, but I believe that when interest rate cuts occur – possibly next year – this could push up the share prices again.

At the time of writing, these are the following discounts:

• Rural Funds is trading at a 28% discount
• Centuria Industrial REIT is trading at a 24% discount
• Dexus Industria REIT is trading at a 26% discount
• Charter Hall Long WALE REIT is trading at a 21% discount

At the current levels, I think all four could outperform the S&P/ASX 200 Index (ASX: XJO) over the next two to three years.

The post What’s not to love about these discounted ASX shares with big dividend yields? appeared first on The Motley Fool Australia.

More reading

• These ASX shares could generate $12,000 per year in passive income
• 3 ASX dividend shares to buy with 5%+ yields
• How much is needed in superannuation to target a $100,000 annual passive income?
• 2 ASX dividend shares with yields above 7%
• How much do I need in my superannuation to earn an annual $60,000 passive income?

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Every Aussie investor dreams of making an easy and consistent passive income.

And ASX dividend shares are a fantastic way to get you there.

The problem is that it can be difficult to work out exactly which shares to buy and how much to invest to get the passive income you want. 

To help, here’s a rundown of how to earn a passive income through ASX dividend shares, using $12,000 per year in passive income as an example.

What portfolio size do I need to get $12,000 per year in passive income from ASX shares?

To calculate the portfolio size you’d need to earn $12,000 per year in passive income, you’d need to divide your annual passive income figure by the dividend yield of your overall portfolio. 

So in this case, for example, $12,000 divided by a dividend yield of 3% is $400,000. This $400,000 figure is the portfolio size you’d need to earn this level of passive income each year.

The tricky part is that the answer varies widely depending on the dividend yield of the ASX shares you’d have in your portfolio. 

For example, a portfolio with a dividend yield of around 6% only needs to be half the size of one with a dividend yield of around 3% to generate the same level of dividend income. 

How much do I need if my portfolio yields 4% to 8%?

We’ve already calculated (above) the balance you’d need to earn $12,000 off a 3% yielding portfolio.

To earn the same passive income off a 4% yielding portfolio, you’d need around $300,000.

Then, to earn $12,000 from a 5% yielding portfolio, it would need to be closer to $240,000.

If your portfolio has an overall dividend yield of around 6%, you’d need to invest closer to $200,000 to receive your $12,000 per year in passive income.

Your portfolio would only need to be around $171,500 to earn $12,000 if it had an overall yield of 7%.

Portfolios yielding 8% would need to be around $150,000 to earn the same $12,000 per year.

And so on. As your dividend yield increases, the portfolio size needed to earn the same level of passive income goes down.

These figures are based on cash dividends before any tax or franking credit benefits.

Can’t I just invest in the highest-yielding stocks so I don’t need to put up as much money up front?

Technically, yes, but it would be a bad investment decision.

Generally, the higher yielding the ASX shares, the more risk they carry.

Instead, you’ll want to focus on creating a diversified portfolio. For example, you could split your portfolio so that around 70% is invested in mid-range yielding ASX shares, and the remaining 30% is invested in high-yield stocks or riskier shares.

I’d also look to buy ASX shares across multiple sectors to further diversify my portfolio.

It’s important to note that your passive income will likely fluctuate with the company’s profits and dividend decisions.

Give me some examples of passive-income earning ASX shares that yield around 3% to 6%

There is a huge range of ASX dividend shares available to buy, but here are a few of my favourites, currently yielding between 3% and 6%.

Investment banking business Macquarie Group Ltd (ASX: MQG) pays a dividend yield of around 2.7%.

Meanwhile, mining giant Rio Tinto Ltd (ASX: RIO) pays its shareholders a yield of around 3.6%, and Brambles Ltd (ASX: BXB) yields a little lower at around 3.4%. 

QBE Insurance Group Ltd (ASX: QBE) pays a yield around 4.4%, at the time of writing. ANZ Group Holdings Ltd (ASX: ANZ) yields close to 4.6%.

Woodside Energy Group Ltd (ASX: WDS) pays around a 5.4% dividend yield to shareholders. Meanwhile, packaging giant Amcor Ltd (ASX: AMC) pays closer to 6%.

… and some high-yield options around 7% or more

For higher yields, real estate investment trusts (REITs) are a great option because they still offer diversity across a range of assets or shares. Charter Hall Long WALE REIT (ASX: CLW) yields around 6.8% at the time of writing. 

Elsewhere, Wam Leaders (ASX: WLE) yields just shy of 7%, and Lendlease Group Ltd (ASX: LLC) yields around 7.8%.

The post These ASX shares could generate $12,000 per year in passive income appeared first on The Motley Fool Australia.

More reading

• What’s not to love about these discounted ASX shares with big dividend yields?
• 3 ASX dividend shares to buy with 5%+ yields
• 2 ASX mining shares to sell: experts
• Could CSL shares double from here? Here’s what the experts think
• What is Morgan’s updated view on Rio Tinto and BHP shares?

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The best money-saving techniques are the ones you can stick to for decades.

Building lasting wealth is rarely about a single big win, but rather about small, repeatable habits.

Do them consistently, and the results can be incredible.

Here are some of the best saving techniques to help you build long-term wealth.

Simple saving techniques that build wealth

Start by making your money work for you.

Move money into savings the day you get paid, before you spend a cent.

Automating this step removes willpower from the equation, and so when the transfer happens by itself, you never miss the money.

Next, get on top of the big three costs: housing, transport, and food.

These usually dwarf the small stuff like your morning coffee.

Trimming a large recurring bill saves you money every single month.

Similarly, refinancing a loan or renegotiating a plan can free up hundreds of dollars a year.

Another of the most effective saving techniques is tracking where your money goes. You cannot fix what you cannot see.

A simple spreadsheet or budgeting app will do the job. Review it once a month and look for leaks.

Finally, treat windfalls with care.

Tax refunds, bonuses, and pay rises are easy to spend away. Instead, directing even half of these windfalls to savings can accelerate your progress.

None of these steps requires a finance degree. They just require consistency.

Put your savings to work

Saving is only half the story.

Cash sitting idle in the bank slowly loses value to inflation.

To get a grip on inflation, the Reserve Bank of Australia held the cash rate at 4.35% in June 2026.

Although that is a reasonable return on savings, shares have historically returned more to ASX investors.

The S&P/ASX 200 Index (ASX: XJO) has delivered a long-term annualised return of roughly 8.2%, including dividends.

But what if you don’t know what to invest in? Low-cost index funds (or ETFs) are a simple way to capture market returns without having to do any of the heavy lifting.

Two examples of this are VAS and A200.

The Vanguard Australian Shares Index ETF (ASX: VAS) tracks the top S&P/ASX 300 Index (ASX: XKO) companies, whereas the BetaShares Australia 200 ETF (ASX: A200) tracks the largest 200.

Both charge tiny fees of 0.04% and can be bought in a single trade.

Reinvesting distributions from these funds, along with additional savings, lets compounding do the heavy lifting.

Over many years, that compounding effect can turn modest savings into serious wealth.

Foolish Takeaway

None of these saving techniques is complicated, which is the point.

Pay yourself first, automate, track your spending, and invest the difference.

Start small if you need to, then build from there.

Repeat the process long enough, and with compounding, the numbers can look after themselves.

Master a few simple saving techniques today, and your future self may thank you.

The post Best money-saving techniques to build long-term wealth appeared first on The Motley Fool Australia.

More reading

• 5 ASX ETFs for beginner investors in July
• 3 ASX ETFs that make long-term investing easy
• VAS vs VGS: Which Vanguard ETF is winning so far this year?
• Should I target high growth or balanced strategies for my superannuation?
• Own Vanguard ASX ETFs? It’s dividend payday!

Motley Fool contributor Mark Verhoeven has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.