Best Residual and Passive Income Investments

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Passive income is nothing but the net return that we earn without taking many efforts. Nowadays passive income is becoming popular because of the increased number of technical information accessible to everyone over the internet.

People search things such as “GET RICH OVERNIGHT” such websites fool people because to earn passive income the person has to take efforts, apply strategies at the correct time and invest money at the correct place.

We just have to invest our money in such trades which can give profit to us. Outside there are many ways where we can invest our money for profit. Some of those are well heard such as Mutual funds, share Market (Stock Market), etc.

One of the well-known person for gaining lots of profit form investment is Warren Buffet. He has invested so much and earning passive income. Today according to Forbes magazine he is the world’s third richest man on this Planet. Check out this journal review article to know more about other passive income business opportunities.

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Initially, to earn the passive income, you require some amount of investment “You have to spend money to make money.”

One of the hot topics revolving around Investors is:

  • Which is the best passive income source?
  • Will passive income generate a huge amount of returns regularly?
  • How much will I earn what will be the duration to get income after investment?

Some of the Best Residual and Passive Income Investment include:

  1. Real estate.
  2. Peer-to-peer lending.
  3. Fixed Deposits

Real Estate

One Thing which strikes us as we hear real estate is “buying and selling of properties.” Investing in lands will generate a permanent income source? Real estate investments are again divided into two groups:

  1. Direct Real Estate Investing (here you own the total ownership of property)
  2. Indirect Real Estate Investment (here you are not the sole owner investment trusts (REITs), or tax liens are the partial owner of the property)

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Real Estate is a fluctuating market, so you have to update yourself continuously. Investing money on real estate requires a lot of patience as acquiring returns on the investment property may be immediate or may require years.

The correct strategy to earn standard income on passive source requires knowledge and experience. People are more inclined towards investing in the Real estate because they think we can sell the property as it’s valued increases over time or we shall earn income by giving property on rentals.

But renting the property if you have stable tenants is a great source of income. Who won’t like it if you get extra income in your pocket?

But for that extra income and investment on should understand that with growing fluctuations in the real estate market, you can’t get stable income only by applying business strategies. Also, Luck factor plays a great role in passive income.

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One more question in real estate property investment is whether you want to invest in Residential Building or Commercial Spaces?

Residential Building is involved with fewer headaches, but they don’t yield more profit. Whereas if you invest in Commercial Spaces, they usually yield more profit along with it you have to invest more initially but once everything is stabilized you start to huge stable income.

In cities like Pune, Bangalore, Mumbai rental business is also a great source of passive income. Pune and Bangalore are the biggest IT hub in India, whereas Mumbai is famous for completing dreams.

Every year many people come to these cities for making themselves successful. And around 70% of people live on a rental basis. This gives a great chance for people to invest and have passive income. Also if you have a small flat, it can give you 10000-20000 a month. In these types of cities, the rental system is a great business. People are becoming richer and richer by just a one-time investment in a flat system.

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Peer-to-peer Lending

Here peer-to-peer lending is lending money to the borrower at lower interest. This is done online through by selecting lenders and borrowers who match with each other.

Here the profit is done on both the lenders as well as borrowers side because lenders earn income by receiving the additional interest on the money which they have lent. Borrowers also earn a profit because they don’t have to pay much interest as compared to traditional Banks interest.

As a result, both the parties are happy, and both earn income. It is one of the oldest passive income sources, yet it involves lot’s of risk because there is no necessary bond or written agreement between lenders and borrowers

There are many online websites which provide such facility of peer-to-peer lending such as Upstart, Funding Circle, Prosper Marketplace.

Fixed Deposit

Fixed deposit, is also one of the best ways of investing money if you want to have security. Today many middle-class people invest in fixed deposit rather than investing, as they don’t want to have too much risk.

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Also, Bank provides up to 7.5- 10% of interest over the fixed deposit. This creates a great income if you invest around 15 lacs – 20 lacs in fixed deposit.

This can create a total of around 1.5 lacs per annum or around 12.5k per month which is a pretty good amount. At least it can help you to pay your monthly bills and some of the expenses. One can also earn great amount online. Today most of the people are learning online rather than attending classes or academy. Many people are making courses and publishing them online.

This is one of the most efficient and easy ways with zero investment type of income. They do not need to invest a large amount of money.

We just have to dedicate our time in making course videos then we can publish it on YouTube or by creating our own website. One’s website domain just cost almost 1500 a year. This is the preferable mode of passive income if you have the know-how and with low investment. Today many people also making there funny videos or vines which can we publish online and making them famous and helping them earn pretty handsome amount.