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Top Passive Income Ideas

Posted by Jehan Anis on December 14, 2022

top passive income ideas 1


The ultimate goal of hands-off investors is to make money while sleeping. This may be possible if you discover the best sources of passive income.


What Are Passive Earnings?


Passive income is money that can be earned with minimal effort. After identifying and establishing a passive income stream, you will no longer need to attend to it daily; but, you will still need to perform occasional work.


The majority of ideas for passive income need an initial input of time, money, or other resources. They also require some monitoring or routine maintenance to keep things on track, but you will not need to devote tens of hours every week.


How to Earn Passive Income?


Typically, people produce passive income in one of three primary ways:



When you invest, you use the money you currently have to generate additional funds.



This involves obtaining an asset that generates passive income over time.



In this context, sharing involves selling or renting out things you already own.


Let’s examine various passive investment strategies that leverage investing, asset creation, and asset sharing.



Real Estate


Real estate ownership is one of the oldest methods for generating passive income. If you do not hire a property investment professional, repair and maintenance requirements can sometimes become time and money drains when you own rental property. Additionally, purchasing real estate may necessitate an upfront cost of hundreds of thousands of pounds.


You can avoid the expense of paying upfront and hassle by investing in real estate through the Rent-to-Serviced-Accommodation model instead.



What is R2SA & its upsides?


Rent to Serviced Accommodation (also known as R2SA) is the term for a short-term holiday rental of a fully-furnished property that is rented from the owner. The property is rented from the owner (landlord) at the standard long-term market rent, and it is then rented on short-term rental services such as Airbnb. This is done to produce greater rental income through short-term leases as opposed to long-term leases. Airbnb short-term rentals are of a considerably higher quality and presentation than a typical tenanted property since they must appeal to short-term renters (often for as little as two days) who anticipate a high level of presentation, similar to what they would find in a hotel or bed & breakfast. While the majority of short-term rentals in a city may be for vacationers, there are many additional reasons for short-term rentals, such as corporate stays and short-term seasonal housing.


The greatest advantage of real estate investing is the ability to profit from assets you do not own. This is also a simple approach to entering the real estate market and generating a substantial profit margin. A further advantage for R2SA operators is that they are not required to obtain a mortgage or make a substantial down payment. Therefore, if executed properly, the rent-to-serviced-accommodation route can be a highly profitable venture with relatively cheap start-up costs.




What is Buy-to-Let & its upsides?


When purchasing a buy-to-let property, an investor purchases a home or apartment with the goal of renting it out to renters. The goal is to earn a profit on the investment by generating income through monthly rent and capital gains when the BTL property is sold (and, in the best of circumstances, profit from both).


After reminding landlords of some of the disadvantages connected with rental property, a buy-to-let guide must also discuss the benefits.


From a long-term perspective, a buy-to-rent property is typically a solid investment. Although the housing market fluctuates, there is an overall increasing trend. For instance:


  • Compared to a decade ago, typical house prices are 34% higher today.
  • and 212% greater than twenty years ago.


Some regions of the United Kingdom are also predicted to experience tremendous expansion, particularly cities in the North East of England. There are numerous opportunities to make a profit in real estate, so long as you learn which towns are predicted to experience the greatest gains in house price growth.


In addition to the general upward trend of property price rises, rentals also tend to increase over time. There will always be a market for people seeking to rent private property on a medium- to long-term basis, and due to high housing costs, many younger generations are delaying homeownership for longer periods of time.



The conclusion


Investing in real estate is an excellent strategy to produce passive income. It offers numerous choices, allowing anyone to begin earning passive income in the field. There are some minor risks associated with passive income real estate, but investors can mitigate these by avoiding typical errors.

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Established in 2019, Star Sterling is a family-run business based in the UK. As a cutting-edge investment advisory firm, we aim to deliver top-of-the-line investment services to all our valued clients. Leveraging a dynamic combination of finance and real estate expertise, we specialize in B2SA, R2SA, and BTL property investments.
Our professionals work tirelessly to identify the best investment solutions for estate agents, landlords, and investors and cultivate long-term partnerships for future success. We partner with businesses to find suitable properties to provide premium accommodation on a short-term basis to business travelers and contractors. By creating customized strategies for our clients, our services extend beyond the traditional confines of real estate

Our Typical Investors are

✓ People with a minimum of £7,500 to invest into Rent To Serviced Accommodation and £50,000 into Below Market Value property deals
✓ Looking to build high cash-flowing Rent To Serviced Accommodation portfolio (either passively or self-managed)
✓ Looking to buy Below Market Value residential properties with 8% to 10% annual return on capital
✓ Looking to achieve financial freedom through property investment in the UK
✓ Looking for safe and secure investment opportunities with low risk
✓ Looking to build a legacy for their family’s future

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