Generating passive income is an interesting idea in more ways than one. It’s about making money by providing a little work. With a unique and often simple approach, income is generated in the medium or long term regardless of hourly work. Enough to achieve perfect financial independence, supplement your income or envision a more comfortable pension. Here are 10 passive income ideas that you can implement from the get-go.
Traditional passive income: real estate
Even today, stone is still considered a safe and profitable investment in all respects. However, this idea is often associated with having startup capital. There are ways to “do without” when starting from scratch.
OanHuaja without contribution
It is generally considered that banks do not lend without a significant contribution. Often times, they require the borrower (s) to pay the equivalent of a notary’s fee. For example, if you want to borrow $ 150,000, expect most banks to ask you for about $ 15,000. If you want to invest without contributions, go your own way.
But this is not inevitable: in some cases, there are institutions practicing what is called a 110% loan.
These banks agree to borrow an amount greater than the property’s value. This poses a risk for them: Early resale cannot pay off the loan. With a steady track record (regular income, savings capacity) and demonstrating the desire to be a good customer by registering, for example, in insurance products. Finally, be clear about your investment project, the kind of dynamics that can attract. And most of all, feel free to consult with some institutions to win your case!
Idea # 1: Start with renting out real estate
There is no doubt that buying houses, especially apartments, with the intention of renting them and earning income from them, is considered a profitable business.
Are the incomes negative? To an extent, yes. Again, it’s all about investment vehicles. Without an initial contribution, it is sometimes difficult to delegate the various rental management tasks as they are costly. Likewise, it is imperative to take care of the work it has to perform.
Finally, before a certain point, current asset management and accounting cannot profitably be mandated. Passive Income Yes, as rents decrease on their own, but beware of accidents! On the other hand, after a while, when you start to really live on rental income, rental management tools (from agencies), asset management and maintenance contracts allow you to relieve yourself of these responsibilities for a fee. Mostly monthly investments. It is enough to give you time to live well
Idea # 2: Short term rent
A good way to convince a potential banking partner if you don’t have a stake, is perhaps to focus their future investments on short-term leases.
Under certain circumstances, this can be really profitable, in the short term, even if it seems at first glance less certain.
To secure your banker for your project, expect a sector in real estate tension where needs are high. So instead in the city near transportation facilities, to attract business clients who will rent for a night or a week, or in a well-known tourism sector, to attract tourists.
A combination of both is somewhat a win-win formula. Target a super hub for a big city or coastal city, dynamic economically and from a tourism point of view, franchise small areas (studio of 3 rooms), easier to maintain and rent, and more profitable to earn real income
Passive income in the stock market
It is well known that the stock market can be a passive income generating tool. However, is this possible without input?
Idea # 3: Order a supplement thanks to PEA
Opening a PEA is a simple procedure that requires very little investment. From the start, we will argue that we did not start “from nothing”: it is true. But this can be achieved with a modest income, the full budget of your monthly contributions.
For example, specifying 300 euros first, then 100 euros per month, it is true that the return on investment may seem small.
Of course you need to manage your investment, while favoring stocks of companies that are safe, historically recognized, that can be counted for a long time, and that can pay dividends. These are profitable incomes in the long run, because after a few years it can become the majority of passive income in your budget, and it can even provide you with a comfortable pension, providing you with some safety.
Idea # 4: You go through an accumulation phase
To start playing the stock market more effectively, you need to raise capital, and thus you must consider that you are active before the first return on investment.
Take this fruitful period seriously: It’s about holding a predetermined share of your active income in order to create directly usable capital in the stock market.
Not for PEA, which provides long term savings, but to invest in highly profitable transactions. What’s free at this time is the fact that you seriously document yourself. You can also train strictly in trading, before making your investment, on trading platforms with a fake currency for example.
It may sound fun, but it can be extremely dangerous in the end and allow you to generate significant passive income thanks to controlled risk.
Idea # 5: Develop passive income, depending on your talent
In addition to traditional tools, thanks to the internet, there are passive income generating solutions. Often times this requires learning a few techniques and making time for them at first, but in the long run it can be a lot of fun when you showcase your talents.