Creating Passive Income Streams
Creating passive income streams.
Do you feel trapped in a high-pressure job because you need/want the money that goes with it? Maybe you are reluctant to change your career or work levels because you are worried you will use up all your savings whilst doing so.
In this article Dawn Hutchings, founder of Lucesco Ltd, shares some ideas on how you can utilise your savings to create additional passive (or hands-free) income streams.
Creating passive income streams
Passive income streams could provide the financial support you need to transition your career, reduce your workload or simply top up your pension income.Often people’s thoughts turn to the traditional Buy-to-let property when they think of generating additional income and there’s nothing wrong with that.
However, with today’s property prices you would need to commit a good chunk of money or be willing to take on an additional mortgage to complete the purchase. You would also need to consider maintenance costs, tenant management and vacant periods into your calculations, all of which make it somewhat less hands-free.
Another option is to participate in the activities already being undertaken by a group or company. For example, a property developer or rental housing provider. That way you can get involved in property projects that are much larger than you could otherwise afford and from a much lower starting price.
There is also the advantage that the company is an expert in its field, with experience and a provable track record of delivering the developments; probably not something you have yourself.
A good example of this sort of project might be in the social housing sector. We all know that Local Authorities are under increasing pressure to supply housing and waiting lists are long. Indeed, the knock-on effects of Covid are likely to increase this demand if job losses continue to rise.
Shared purchases of groups of properties that are then forward leased to the Local Authority, can provide government-backed long-term rentals for investors, as well as the much-needed housing for our communities.
The long-term nature of the leases also means that the property owners do not suffer if there are short-term fluctuations in property prices. These groups provide a genuinely hands-free service with fixed rental yields and no hidden costs.
More about Lucesco Ltd.
Lucesco can help you to generate passive income streams through property investment and pensions, with a view to reducing your working hours and improving your lifestyle.
Found this article useful? Why not read Need to consolidate your pensions? here.