Real Estate Investor Magazine South Africa July 2016 | Page 25

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