5 Passive Ways To Invest In Real Estate

5 Passive Ways To Invest In Real Estate

Investing in real estate is often viewed as a ‘passive’ income – you make your investment and then you get to sit back and watch the money roll in. Of course, in reality, this isn’t always the case. Many forms of property investment require ongoing work, whether you’re renting out property to tenants or letting people hire land for events. This begs the question: is there a truly passive way to invest in real estate? 

There are in fact a few ways in which you can turn real estate into a passive income. Below are just a few investment ideas that could be worth looking into.

Invest in shares of real estate

There are a few different schemes in place that allow you to invest in shares of real estate. The likes of Farmfolio as created by Jonathan Dax Cooke allows investors to buy shares of farm land. This can be a way of making farmland more affordable to budding farm owners, while getting to share some of profits from this farm land. There are similar schemes in place when it comes to helping homeowners buy property.

Invest in real estate companies

You may also be able to invest in stocks of real estate companies such as property development companies. This helps to fund the company’s growth. Meanwhile, you get to enjoy a slice of the company’s value. As with all stocks and shares, you don’t have to do any work – providing the company you invest in is successful, your stocks will grow over time and you’ll make money.

Convert land into parking space

Buying land and turning it into a car park could be a good investment. By charging people to park there, you can make a return. A car park costs very little to develop and maintain. In most cases, a ticket machine and security cameras is all you need. Just make sure that the car park is in a place where people will actually be willing to pay for parking.

Get money for ‘rewilding’ land

Rewilding land involves taking a piece of land and letting nature take its course. It’s a great way of supporting local wildlife and you don’t have to do anything to the land other than preserving its natural state. Many states and countries will provide ongoing payment for preserving land allowing it to be potentially quite profitable.

Rent to tenants – but hire a property manager

If you’ve got your heart set on renting property to tenants, but you’re worried about the ongoing maintenance, a solution could be to hire a property manager. This involves hiring someone to handle all property maintenance and tenant communication for you. You’ll have to pay an extra fee each month for this service, which could affect your return. However, it could be worth it for taking away some of the hassle. This post at Dollars Plus Sense explains more about the pros and cons of hiring a property manager.

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