Top 15 Passive Income Ideas in Real Estate

We Understand What Brought You Here

As Australians, creating a passive income stream through various forms of investments including real estate is what we aim for. If you are about to retire or simply wanting a better lifestyle because you have worked hard enough to get to where you are now, this blog is perfect for you.

We will give you a brief on every investment strategy out there in the real estate market that is widely used by savvy investors across Australia. We are confident that the information provided here can guide towards the path of generating passive income streams and help build wealth. Let’s get right into the various real estate investment options available in Australia.

Comprehensive Version of the Best Passive Income Ideas in Real Estate Investments Below

Investment Opportunity in Residential Rental Properties

Residential rental properties offer an excellent source of passive income. To be a successful investor in the residential property sector, you need to research on the best growth locations to earn a good rental income. If you dig deep and do your homework right, you will be able to build equity on the property as well as achieve good capital growth and make significant profits when selling it. Based on your budget and investment capacity, you can choose to buy an apartment, a townhouse, family home or a multi-family property to best optimize rental income. Here is a list of top 10 suburbs that are expecting significant growth according to canstar.

Here is a video from Ravi Sharma on how to make upto $100,000 in passive income from real estate investing.

Exploring Commercial Rental Properties

Commercial rental properties like an office space or a retail outlet present an excellent way of diversifying your passive income sources. Investing in commercial real estate can add another stream of passive income into your portfolio. Here is an in-depth guide from Rethink Investing on how to get about investing in the commercial real estate market.

Understanding REITs

Real Estate Investment Trusts (REITs) provide investors like yourself an easy way to invest in real estate without directly owning properties. REITs has true potential for passive income and help you save on taxes. Gain more insight on how REITs’ work, types available and all its pros and cons from this article posted by fool.com.au

Real Estate Crowdfunding

Crowdfunding platforms have revolutionized how investors participate in real estate projects.  Venturing into real estate crowdfunding is new but a fantastic & a unique opportunity simply because of the fact you can start off with a lower entry cost but also buy into a big real estate development. It can truly work as a part of your passive income strategy.

Crowdfunding real estate investment can fast track your journey to getting into the market faster. Understand its concept, benefits and the risks involved from this article by Finder.

Holiday Homes

Have you ever considered buying an apartment or a house by the beach after you visited a similar spot for a holiday. Are you thinking to achieve rental income and a free vacation simultaneously. Yes, it would be nice. However, the question you need to ask yourself is, if the property is worth buying because of its location and growth opportunities or you would like to simply buy it because you enjoyed the sunny weather and the beach surroundings.

The bottom line here is investors sometimes mislead themselves and others into thinking their holiday home purchase was for financial reasons, but it was more about personal pleasure and having a good holiday.

AIRBNB – A Game Changer

Now that we have covered the negatives, we are sure that platforms such as Airbnb have transformed the rental market in holiday homes, giving property owners and managers to reach the right people to help increase occupancy rates and thus helping generate passive income streams on a regular basis.

Take a look at this blog from Real Estate Investar that discusses the positives and negatives of owning a holiday home.

Unlock Passive Income Through Real Estate Partnerships

Real estate partnerships enable investors to pool their resources and expertise for accessing larger and potentially more lucrative real estate deals. Understand different kinds of partnerships available so that you can start unlocking passive income sources today!

Joint Ventures and Limited Partnerships are 2 common forms of real estate partnership. Joint ventures would include shared responsibilities and reduced financial obligations while taking into consideration that it comes with its own set of risks.  Alternatively, you can look at options to work with businesses managing big investment projects and their emphasis is on mitigating risk and help maximize your return on investment. Altis Property Partners is a business we found online that is currently working on a few projects that might help you.

Joining Real Estate Investment Groups

Real estate investment groups provide passive investors an easy way to participate in larger real estate projects without taking on excessive risk or sharing expertise with multiple parties. By joining one, discover its many advantages such as reduced risk exposure and exclusive investment opportunities!

Here is a example from Meet Up where there are about 28,000 likeminded real estate investors and about 60 plus groups currently.

Real Estate Notes

Real estate notes provide another avenue for passive income generation. Although, not a very popular method of real estate investment in Australia , Understand its principles and the available options to investors including its risks and returns from Wealth Fit.

Real Estate Exchange Traded Funds

Real Estate Exchange-Traded Funds or ETFs provide investors with an alternative means of exposure to real estate without directly owning properties. See what one of the most prominent ETFs Vanguard has to offer with their potential benefits. This can also be another form of investment option of not owing a property and the headache that comes along with it but can be included into your passive income portfolio.

Peer-to-Peer Lending in Real Estate

Peer to peer lending is a Marketplace lending platform that allows someone in need of any form of capital for a business, real estate project or even a personal loan. In this case, you are borrowing money investor instead of a bank or building society. If you are using this investment towards a real estate project, this requires you to be an expert in the field and you will need to assess risk before venturing into this this.  Here are the pros and cons of peer to peer lending.

Real Estate Development as a Passive Income Strategy

Real estate development offers the potential for substantial passive income generation. Discover different kinds of projects such as residential subdivisions and commercial properties as you explore these avenues of potential development income. However, this requires some significant capital, project experts, architects , builders to work and manage the project. The alternative is to find a development project  and invest with the developer and get a passive monthly income.

Star Investment’s Waterfront Development Project

Star Investment is currently working in a waterfront development in Lake Narracan, Gippsland in Victoria. The first six stages of the project have already been sold, with a total Gross Development Value of $125 million and over $23 million in sales.

Our Investment Offer

We are currently offering 12% fixed return on your investment paid every monthly. Invest in our waterfront development project and earn a guaranteed fixed monthly income with no hidden fees attached. Growth has been significant over the past 2 years, and we have also raised over $5.7M in investment during this time.

Real Estate Education & Investment Courses

Recognize the significance of education when it comes to real estate investing and how it can advance your passive income journey. Take time to investigate different courses that are available & & provide essential real estate investment strategies. Here is a course from UTS that might help you in the right direction.

Real Estate Syndication

Real estate syndication involves pooling resources from several investors in order to take on large real estate projects. Gain more of an understanding about this form of investing by studying its benefits as well as participating in any potential deals involving this form.

Real Estate Stocks

Buying real estate stocks is another example of passive income generation through real estate investment. Visit Market Index to see some of the real estate stocks listed in Australia.

Real Estate Property Management Services

If you are planning to buy multiple investment properties, hiring a property management firm could work as an avenue to passive income and save you loads of work and maintenance. About 80% of the rental properties in Australia are maintained by real estate agents or property managers.

See all the benefits offered by a property management firm as well as some essential tips from this Forbes article.

Our Final Thoughts on Passive Income Ideas

Thanks for going through the journey of everything you need to know about real estate passive income ideas! We have provided you with various strategies that can help generate ongoing passive income and build long-term wealth, so now it is up to you to act and implement those ideas that resonated most. Real estate is always changing and so stay current on market trends while expanding on any new opportunities you might find along the way! Start building financial independence via passive income today in this vibrant industry!

Source : https://www.starinvestment.com.au/blog/top-15-real-estate-investment-ideas/

 


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