Dec 30, 2022
In the World of finance, passive income means the money one can earn without actively engaging in the management of the invested asset. In simple terms, a payment that generates after the initial investment and requires less maintenance is termed passive income. It is a relatively new term in this age, where financial literacy is essential for everyone to live without worrying about monetary gains. Young adults make up a significant chunk of India’s investment market, and you might be surprised that 63% are choosing real estate as their investment for passive income!
Why is real estate popular as a source of passive income?
Real estate is one of the most vital asset classes that one can invest in in this modern era. Despite numerous ups and downs in the financial World, real estate has stood up as one of the few sectors that can survive against almost any unfavourable market situation. There are several reasons behind this, one of them primarily being urbanisation and rapid industrialization. Real estate is also one of the most rapidly growing sectors of the World’s economy.
Despite regularly fluctuating market conditions, real estate is one of the top choices of the World’s finest investors. Real estate investments also add up to a significant portfolio of alternative investments, which act as a secure form of insurance against economic hardships.
Several features are present in the real estate industry, such as REITs (Real estate investment trusts) which are perfect for people who want to avoid managing their investments at the personal level. Fractional ownership is another impressive investment option for investors who wish to legally own a portion of a valuable commercial or residential real estate asset.
How to invest in commercial or residential real estate?
Investments are much easier now than it was during the last decade. As the age of the internet and digital modes of exchange have gone up rapidly, investing in real estate in both commercial and residential forms is now seamless due to solid and reliable platforms like Assetmonk. These platforms offer a variety of innovative investment features like fractional ownership and digital investment management, which makes investing a whole lot easier!
Investing in commercial or residential real estate only through secure and reliable platforms is highly recommended.
Are real estate returns good enough?
Real estate returns are always a hot topic. It must be so satisfying to make an investment and watch it grow over time. Many people are drawn to real estate as an investment option.
First, real estate is one of the best investments for long-term growth. It tends to hold its value better than stocks or bonds, meaning that you’ll have less risk of losing money over time because of inflation or other factors (like interest rates).
In addition, you’ll have a lot more flexibility with how much you invest. You can decide whether or not to sell your home at any point during its life cycle, which means you don’t have to wait for someone else’s decision before being able to move on with your life.
Here’s why young adults choose real estate as their passive income source!
Real estate is a great way to generate passive income. It’s like an investment opportunity but not as risky as investing in stocks or other financial instruments. You can get paid for renting out your property, and the cost of purchasing a house or apartment is usually not very high.
There are many different types of real estate that you can invest in, including commercial real estate and residential properties. Commercial properties are typically purchased by companies or large institutions, such as shopping centres and office setups. Residential properties are usually owned by individuals who live in them full-time, such as families with children at home or older adults who need caretakers.
Real estate can also be used for investment purposes by buying a property that will appreciate over time. This type of property is referred to as a “long-term” investment because it typically takes some years before earning income from rents or sales prices. But once the revenue comes in handy, there’s nothing to worry about further!
Invest, but with proper market research.
Investing in real estate can be a great way to build wealth, but it’s essential to do your research before you start making any purchases.
It’s also important to know that different kinds of investment opportunities are available, so it’s best to research each before deciding which is suitable for you.
For example, investing in commercial real estate might be the way to go if you’re looking for an investment that will provide income and appreciation. Investing in residential real estate would be better suited if you’re looking for something with a higher ROI.