Thursday, April 9, 2015
You don't have to manage the property.Passive investment in a property will get you off the hook with the responsibilities of being its landlord. Get investment returns from rental income without the hassles of dealing with tenants, upkeep, or repairs.You don't have to deal with banks.Passive investing is often made through private investment companies instead of banks. Banks typically require extensive documentation for a loan, and it may take a while yet before an investor is approved for such. By contrast, investing through a private company allows for a much faster transaction.You let others do the work.As in the case of REITs or investment groups, an investor would need only entrust a developer or company with his investment and, eventually, enjoy its returns. Given this setup, there isn't as much need for research; no need to scour for property to invest in, or worry about its location, or attend to advertising and marketing the property: everything else is already taken care of.You generate passive income.As with all types of passive investments, you'll generate income with minimal work. Passive income allows you to maintain your daytime job whilst making money on the side without having to actively work, as is often the case with a sideline. It's an ideal financial situation to be in.