Why do I believe that investing for passive income real estate tops every other approach when it comes to building genuine wealth? Let's examine the benefits together
If we examine the differences between investing your money in the stock market vs. investing in real estate you will notice that they both have their ups and downs. The difference here is their timelines.
On the other hand, you can invest in the stock market with very little money. But it won't grow and appreciate like real estate tends to do on an annual basis.
I my lifetime as a real estate investor, I have only witnessed 2 major declines, and they were predicted by the stock market's events. And with a little patience, your real estate investments will be back on track before long..
When we discuss passive income as it relates to real estate, we're looking at a real estate investment that will bring you monthly income without doing much more than buying it in the first place. Rental properties, and short-term opportunities such as an AirBnB type set up in your own home are just a couple examples of income that comes in without much added effort.
I was listening to a BiggerPockets podcast when the host shared that he purchases a rental property for each of his children when they are born. As a result, when it's time for college those purchases are more than sufficient to pay tuition and then some.
That's some serious passive income, when you take into consideration the rental income for 18 years combined with the appreciation of this asset.