Passive income is the ideal situation that most people want to be in, but what is it? Passive income is something that they don’t teach you in school. The only income we are taught is active income. This where you work once and get paid for said work which is commonly known as a job.
Passive income is where you work or invest once and get paid forever. The best way to make this kind of income is through property. Looking at the worlds rich lists a large majority of them have made huge amounts of wealth through property investments.
So what are the best ways to achieve passive income through property? Listed below are the five ways that you can achieve your passive income through investment strategies.
- Buy-to-Lets – Buying a simple residential property and renting it to a family. The demand for these types of properties will never die resulting in a consistent income.
- HMO – Renting out a property on a room by room basis will create higher income when in comparison to a buy-to-let.
- Serviced Accommodation – This is a hotel without any staff. With tenants, you will be renting to guests SA’s also have the highest form of cash flow when done correctly.
- Commercial Property – Once you’ve become seasoned in property to take it to the next level investing within commercial properties is something that can take your income to the next level. It’s great on tax savings and long term leases.
- Property Business – Turning your properties into a business will provide you with stability and longevity. Getting involved in sourcing may seem like an active income but systematizing it and adding staff could give you a passive income.