Passive income is a pretty hot topic these days, as people get tired of working for income, the idea of passive income becomes very intriguing. Here are 5 ways to create passive income.
1. Property / Real Estate
Property investing in general can provide one of the highest returns due to the leverage it offers. By leveraging on the bank loan, one can purchase a property many times the value of the down payment required. For example, if you can get a Loan To Valuation ratio of 80%, you are purchasing a property worth 5 times more than your down payment, effectively having 500% leverage. You can then rent out the property for passive income, assuming a good rental yield, you should have positive cash flow after accounting for the loan repayment and other costs. The problem with property investments is that they are very illiquid; it can be very ......