Editorial Invest in Slovakia
Stable passive income equal to the cost of living is the dream of perhaps all of us. But how to get there? Even if building a decent passive income usually takes up to several years, every journey starts with the first step one. That's why we've put together a series of articles on passive income called "How to Build a Stable Passive Income".
Income can be be considered passive if its generation does not depend directly on the number of hours worked. Simply put, passive you earn income throughout the day without lifting a finger.
There are many types of passive income, which we will introduce in our new series called How to build a stable passive income. In today's pilot part we will imagine passive income derived from investments in the real estate market.
Purchase and subsequent rental of real estate is one of the most widespread strategies for generating passive income. He can usually be created even if you have a property financed through a mortgage loan. However, be prepared for some time investment in finding subtenants and subsequent communication with them. As a landlord, you will have to to take care of everything from internet outages to fixing a clogged sink or a failure of the electronics belonging to the rented apartment's equipment.
The main negative of this type of passive income is relatively high initial investment.
Investments in real estate was once considered the preserve of the wealthy, but this has changed in recent years has changed the trend of real crowdfundingwhich brought the possibility of generating passive income by investing in real estate market to the general population.
Real estate crowdfunding is clearly the most accessible form of passive income generation with a minimum investment from 100 euros.
Money invested through real estate crowdfunding is do not use for the purchase of real estate. Instead, they go into purpose-built and secured private loans to real estate developers the investment project in question. The advantage in this case is the predetermined appreciation of the investment, since the loans are granted at an agreed interest rate. The future return on your investment, i.e. also the amount of passive income, so you know right when you enter the investment.
On the Slovak market is a leader in real estate crowdfunding Invest Slovakia platformwhich provides the possibility of generating passive income without any fees.
The third option of investing in real estate are the so-called REIT funds, from English Real real estate investment trustwhich invest primarily in ordinary shares from real estate sector. This is another way, how to create passive income by investing in real estate without, without owning the property.
REIT funds create passive income to the investor by owning income-producing real estate. Part of of which is then distributed to investors according to the amount of their original investment.
Real estate investment trusts REITs are a type of unit trust Fundsthat invest in the same way as others mutual funds, but with the specificity of investing in the real estate sector. Can both residential and commercial real estate.
Read more about generating passive income through investing in financial markets you will read in the second part our series of articles entitled How to build a stable passive income, which you will find soon on blog Investícia Slovensko.
* Did you find a bug? Write to [email protected]
