Passive income is income you receive on a regular basis without having to work just as regularly to get it. By definition, passive income doesn’t require a lot of follow-through to produce that consistent cash flow, but that doesn’t mean it’s easy to get. Indeed, it is necessarily the result of an initial investment and upstream work to make it profitable.
When it comes to generating passive income, you must therefore start by stimulating the market first, then take care to maintain it. The second step is less tedious and requires little time and resources, which is why the word “passive” is used. But above all, it is above all a question of finding THE passive income in which to invest.
Real estate investment and online business are among the most popular sources of passive income today. I will detail all this in the rest of this article.
Real estate is the most promising sector when it comes to passive income. Indeed, investment in stone is prioritized by the French for many good reasons:
Real estate remains a safe investment when we know that in France, more than 150,000 homes are missing per year! In addition, the value of real estate tends to increase over time, provided that the market has been well studied beforehand. Real estate in particular makes it possible to obtain truly passive income since once the purchase and rental procedures have been completed, all that remains is to collect the money every month !
Real estate investment offers the advantage of being accessible to all, in the sense that it does not require any particular skills, apart from starting capital to invest of course. By investing in real estate, you kill two birds with one stone by building up your assets while making it profitable. This heritage can then be used as you wish: housing, inheritance, rental to relatives…
Real estate rental investment also allows you to choose from different possibilities such as renting apartment buildings, which will allow you to buy a lot of buildings at a low price. The yield of a rental property is optimized thanks to a low management cost and the possibility of spreading the risk over several lots . You also have the possibility of delegating the tasks related to the management and rental of the property to a professional in the field, in order to optimize the return. This is very practical if you have several other activities to manage.
Among these possibilities, I can also mention the seasonal rental which is a good way to make profitable the free rooms of your house, or even your garden studio during the holiday periods. By registering your property on the dedicated platforms, you will be sure to find tenants as soon as the annual vacation periods approach.
Investing in SCPIs (real estate investment companies) is also an excellent source of passive income. Find out the details in this article.
Real estate investment offers the advantage of being able to be financed by borrowing, which facilitates access. Banks and other financial institutions are indeed more inclined to grant loans for this type of financial investment, because it is considered profitable and secure . You have the possibility of repaying part of your mortgage thanks to the rents you receive, and in the end, you are a winner since you remain the sole holder of the real estate assets.
In France, you should know that the investment of individuals in rental property is strongly encouraged by the State. Tax provisions such as the Pinel Law allow people who invest in rental property to benefit from tax advantages.
Since the democratization of the use of the Internet, it has become a real financial windfall for entrepreneurs and individuals who wish to build passive income online.
Here is a non-exhaustive list of existing solutions.
Creating and maintaining a blog requires a certain investment of time at the start. But once the latter is monetized, it can be a great source of passive income. Among the monetization solutions that generate this type of income, I can only recommend affiliation . The concept of affiliate marketing is quite simple:
So all you have to do is set up a marketing system to get visitors to click on your affiliate links.
You can also post sponsored articles for which you will be paid . The more notoriety your site will gain, the more you will be able to claim an attractive remuneration.
Mobile application creation is a solution that web developers can implement to earn passive income online. To do this, you must obviously create an application, then offer it for sale or for free on application sales platforms. If you go for a free app, you will get a source of passive income through advertising .
Designing and selling online courses is increasingly popular for earning passive income online. This concept consists of creating courses in the form of a video, e-book or tutorial to be made available to Internet users subject to registration. Each time a customer purchases your course, they will automatically receive all the materials you have provided .
On your end, you will receive a sum of money for the price of the course you have designed. Attention ! I would like to point out, however, that this is not easy money. If you want your course to sell well, it will have to be of quality, and you will have to implement a strategy upstream that will allow you to promote it to the public.