Should Real Estate Be Considered A Passive Income In 2022

[moonchild]

Real estate is one of the oldest ways of accumulating wealth, personally, I've read a lot of books on passive incomes even though most of them are written in the eighties or let me just say in the twentieth century, but most of them stress real estate as the building blocks to accumulate wealth, but as the saying goes change is constant and investment is not left out.

For the past twenty years how we invest changed significantly before you have to meet a broker physically before you can buy shares but nowadays with a few clicks on your phone you can buy shares from any public company in the world and this begs for question on whether real estate is still a way one can accumulate wealth passively.

Well, I think real estate is still a hot niche to look at as a passive income investor, because housing or shelter is one of the basic necessities of life, the only thing that have changed is the barrier of entry is getting higher and higher.

As an average earner your odds to succeed as a real estate investor is lower than one that have a massive funds.

Do you think real estate is still a thing in 2022 when it comes to real estate investment?

 

[Setho]

The real estate industry is one that you can be able to make money even passively . They are generally lot of advantages and opportunities that you can be able to take advantage of if you know exactly your way around it and how you can be able to convince clients . A lot of people have associated the real estate industry with high investment and in as much as it is true you really do not need to commit millions of Dollars into it before you can start making money .

As we are all aware the closest way of making money in the real estate is by building rental properties . You can choose to build it whatever way you like based on the mind and people usually like to target students and bachelor's or large families . You can choose to be collecting your rent on monthly or yearly installments and in typical scenario as you can be able to recoup your money within 6 to 7 years.

You can also choose to make money by simply by becoming a real estate affiliates where your work is going to be bringing people who are interested in real estate properties to their sellers.

 

[Mika]

Real Estate is a passive income, probably, the best passive income source. You earn from real estate in two ways, one, you invest in properties, hold the properties for a few years and sell for higher profits, two, you invest in properties, rent out your properties, and you earn rental income. The second method can be considered a better strategy because you are able to compound your profits, first, you earn rental income which you can use to pay back the loan in case you bought the property with a bank loan, two, when you are collecting rental income your property price will also continuously increase and if you decide to sell your property, you will earn profits. The best thing about real estate investment is you can invest and sleep relaxed and then one day wake up and sell back your property to earn profits. You make money when you are sleeping. However, the major drawback of making passive income from real estate investment is the amount of money you need to invest in the real estate property. You need a lot of money, not just one thousand or two thousand dollars, but hundreds of thousand dollars. This is not for people who do not have money.

 

[Ithedicious]

Real estate investment is the type of investment that can be considered to be a passive income business because it has the ability to generate money constantly even without you having to work everyday to generate them .

A real estate investor has so many ways of generating money , he or she can just invest in properties and later rent out these properties for people . Automatically the investor is generating a passive income since the property can generate money as long as the demands for housing is in existence.

It is a nice way of making money and this is what a lot of people who are retired are using to make their money , but however investing in this business may be stressful since it involves huge capital requirement .

But in terms of generating a passive income , I will say a real estate business is a passive income generator.

 

[Suba]

Indeed, most businesses in real estate or property are passive income, such as renting out real estate or you buy for long-term investments, but there are also types of businesses in real estate that must be active, such as if you are a broker or entrepreneur in the type/category as a property developer. , because if you are a developer you have to be active in looking for new land opportunities as well as in marketing.

 

[Jasmine]

In 2022, the real estate price has gone down, you can buy properties for lesser amount compared to 2021. If you are thinking about getting into the real estate market, this is the time. Sadly, real estate investing requires a lot of money. If you don't have money to by properties, this might not be an option to you. Some people suggest that you can borrow money to invest in real estate and pay the mortgage through the rental income. This sounds interesting but very risky because if you cannot find renters you might not be able to collect enough money to pay your loan. Furthermore, you might also be paying more for your mortgage compared to the amount you collect as rents. Another reason that makes real estate risky because of the huge involvement of money, you need to spend a lot of money to buy properties and you might be in debt.

 

[alexa36]

In 2022, real estate should not be considered a passive income because the market is expected to become more volatile. Additionally, the time commitment and upkeep required for real estate investments may not be worth the passive income returns.