FINANCE
Passive Income
How YOU can create it
BY GERT VAN STADEN
Given, for most people, it seems impossible to receive an inflation-linked income every month without spending time, money or effort to earn it, and regardless of whether they are working or not. The truth is that a passive income stream is not only possible, it is also easier to create than most people realise.
Income-generating assets So how can you achieve an ongoing, never-ending passive income? It is as simple as investing in incomegenerating assets. Among these assets, incomegenerating property remains the choice for the world’ s wealthiest people, because it is an asset that produces an ongoing, passive income for as long as the property is held, and that could be for generations. A well-chosen property in a good area with solid rental demand, which is maintained properly over time, will keep generating a rental income for the owner, month after month, year after year, for as long as the property is owned. This passive monthly income keeps pace with inflation too, year after year, as the rental increases in line with inflation or the percentage stipulated in the lease agreement. As a further added bonus to this ongoing, passive and inflation-linked income for life, the investor also enjoys ongoing and compounding capital growth as the value of the property increases year after year.
Your passive income A small portfolio of buy-to-let properties is the proverbial golden goose that lays a steady, neverending stream of golden eggs. In fact, if a property is acquired in the right structure, such as a trust, a rental property portfolio can continue to generate a never-ending income for your family beyond your retirement and even your lifetime. There are thousands of properties such as these held in trust in the UK, Europe and around the world, and these properties have been generating income for wealthy families for generations.
Many investors are surprised to discover just how simple and affordable it is to create a passive income with a buy-to-let property. You do not need prior knowledge or qualifications, you do not need a lump sum investment or even substantial monthly contributions, nor do you need much time or effort to invest in buy-to-let property, if you follow a triedand-tested system such as the P3 Investment System, with built-in risk management strategies.
This is exactly what the 2500 members of the P3 Investment Group are doing: building up small but highly profitable portfolios of buy-to-let properties, which produces ongoing, inflation-linked passive income that continues throughout retirement and even beyond their lifespan. All these ordinary South African investors have realised that it is, in fact, quite possible to earn passive income by taking a 3-pronged approach detailed on http:// p3propertyinvestments. co. za to create ongoing, inflation-linked ongoing income for themselves and their dependants in the next and future generations.
RESOURCES
P3 Investment Group
www. reimag. co. za JULY 2016 SA Real Estate Investor 23