Top Ways to Build Passive Income through Real Estate Investments

The year 2020 has made us see it all, from job layoffs, salary deductions, and a complete downturn shift in the economy. The uncertainties that came with the pandemic have however made one thing certain, the need to have a passive source of income. People have realized the importance of having income security, an investment of the sort that makes it easy to have cash flow in unpredictable circumstances.

The Importance of Passive Income

Passive income is the financial blanket for you that provides security during uncertain times and also acts as a source of income post-retirement. The advantage of having these is that the asset can be liquidated at any time of need and some investments offer a regular yield too. In today’s age when everything is so well connected digitally, it has become easier to have money investment where you are not physically present and still enjoy the perks of the income generated through it. Passive income has therefore become the shield that protects you from unforeseen circumstances like inflation, pandemic, recession, etc.

And while we are still at it, what better way to generate passive income than investing in real estate. While there are many other ways of generating passive income but passive income real estate has emerged as one of the most favourable ones. Following are a few ways of generating passive income real estate.

real estate investment
  1. Commercial Buildings

Investment in property and using it for commercial purposes is a followed trend of real estate investments. Commercial buildings mostly yield a high ROI of 5-6% and offer multiple investment opportunities. The major advantage of it is that commercial buildings are often leased out for a longer duration to the tenants, thus reducing the risk of vacancy and generate long-term income – passive income. If not leasing, they act as a good source of generating monthly rental income too.

Investment in commercial buildings can be in many forms such as warehouses, office spaces, retails spaces, etc. However, if you are only ready for bearing the costs of remodeling the space with time, you should consider investments in commercial buildings as a source of generating passive income.

  1. Second Homes:

Only recently has this trend been observed in India where parts of a particular property are distributed among individuals and all earn a pre-decided share in the revenue generated through the property. These properties have luxurious villas and suites (resort homes) and are located in a tourist destination. The studios and villas owned by the investors are occupied for self-usage and also rented out when not in use. The interesting factor with second home near Mumbai is, they provide high returns of 8-9% and up to 20% with all other benefits are considered.

As this is a resort property, there come a lot of benefits accompanied with it like, high returns, regular rental income because of the high tourist influx, and zero worries about the maintenance of the property as this falls on the shoulders of the resort authorities. Thus, second homes or these luxury homes, definitely act as a viable source of generating passive income.

  1. Residential Properties:

The most common and followed practice of generating passive income through real estate is, buying a residential property and renting it out to tenants. Real estate rental is good with residential properties and is considered one of the most sought-after options because housing seldom sees a downward trend and gives an ROI of 2-3%. The cost of maintenance and renovation is also comparatively lower than the commercial properties in the case of residential properties. Thus, these are considered as a safe and secure way of generating passive income.

With changing times, the trends in real estate investments have changed but what remains is the need for generating passive income. For those who want to have a secure and steady flow of passive income, real estate surely emerges as the winner. It provides a multitude of investment opportunities and is less risky as compared to other investments. The only need is to choose what suits you best and make a smart decision to utilize the opportunity.


Smart Real Estate Investment Opportunity In Karjat

villa
Golf View Pool Row Villa
  • Fully Furnished Row Villa

  • Private Swimming Pool

  • Attached Kitchenette

  • 2 Master Bedrooms

  • Earn Monthly Income

  • No Maintenance Cost

studio-terrace
Golf View Jacuzzi Row Villa
  • Fully Furnished Row Villa

  • Private Jacuzzi

  • Attached Kitchenette

  • 2 Master Bedrooms

  • Earn Monthly Income

  • No Maintenance Cost


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Karjat – Murbad Highway, Opp. Damini Farm House, At Post Kashele, Tal – Karjat, District – Raigad, Maharashtra, India - 410201

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635/1B, New Gajara Society, Above Canara Bank, Bibvewadi, Pune, Maharashtra, India - 411037

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