Real Estate Investor Magazine South Africa June 2016 | Página 28

INVESTMENT STRATEGIES

Passive Income

The Holy Grail of Investment

BY GERT VAN STADEN

What would you be doing today if your income simply arrived in your account each month , not because you are working day in and day out , but because you invested intelligently in assets that deliver a growing income , month after month , year after year , for as long as you live and beyond ?

Passive income : income received regularly , with little effort required to maintain it . Closely related to the concept of “ unearned income ”.
Perhaps you would be sitting on the beach , sipping mojitos , or travelling to exiting and exotic places . Perhaps you would be spending precious time with your loved ones , finishing a favourite project , developing a new skill or realising a long-held dream . There are , of course , no boundaries to what you can do and achieve when you are no longer chained to a job , working day in and day out , for enough earned income to make it through the month , year in and year out until - hopefully - you have saved up enough to receive a monthly pension .
The Holy Grail This is why passive income is the holy grail of investment . Passive income is income that arrives month after month , year in and year out , regardless of whether you are working or not . It is freedom .
Passive income is the holy grail of investment for another reason , too . Unlike earned income , the amount of passive - or unearned – income you can create is virtually limitless . There is a ceiling on the
amount of earned income you can receive , because earned income is limited by how much you can earn for your time and labour in a day . No matter how keen and able you are , you only have a limited amount of time and a limited amount of labour in each day , restricting your earning ability . Passive – or unearned – income does not depend on your time , labour , or even your abilities , and therefore there is no limit to how much passive income you can create .
How to create passive income Passive income : earnings derived from a rental property or limited partnership or another enterprise you are not actively involved in . - Investopedia
Investing in a rental property – or buy-to-let property investment - is the fastest and simplest way to create passive income . This is what our 2500 P3 Investment Group members are busy with : creating passive income streams through rental property . Implementing the 3-pronged approach of the P3 Investment System , encompassing preparation , pre-selected properties and partnership , our investors are streamlining and fast-tracking their path to passive income , so they can quit the rat race and build real wealth .
Don ’ t miss the next articles to find out how our members are creating passive income , or visit http :// p3propertyinvestments . co . za to sign up for our free 13-part course detailing the property investment system step-by-step .
RESOURCES
P3 Investment Group
26 JUNE 2016 SA Real Estate Investor www . reimag . co . za