Investment Strategy for Passive Income

by Jul 7, 2021Real Estate Investors0 comments

Investment Strategy for Passive Income: In this article, our aim is to compare a buy-to-let strategy with alternatives that have the same fundamentals as well as the additional benefits that emerge from impact investing.

As part of their property investment goals, many investors are rightfully focused on earning returns but do not always take into consideration the lasting impact of their decisions. Especially towards those who paid the initial price to create the investment opportunity in the beginning.

With impact investing becoming the trend amongst property investors it is time to revisit the conventional investment philosophy.

Focussing on making an impact, whilst earning excellent returns.

Such examples include investment into a distressed property with the intention to:

  • assist property owners in distress to recover;
  • minimize potential loss of property or proceeds; and
  • generate a measurable, beneficial social impact.

Basic fundamentals of recovery & buy-to-let property investment

Purchase price

The purchase price has the following attributes:

  • influences your returns
  • risk mitigation tool
  • determines the timing of your exit
  • determines the value of the underlying security.

Should you purchase a property at lower than market value, your returns will be secured. This can be achieved without taking advantage of others, but in a manner that is mutually beneficial.

Property management

It is essential to ensure that the correct tenant occupies the property, considering legal costs and processes for eviction, whilst maintaining the proper condition of the property and managing the income and expenses on a continual basis.

Alternative Property Investment Opportunities

Specialist asset originators such as Property Assist provides structured, wealth-creating alternative property investment opportunities to property clubs, institutional investors, and private individuals.

The solutions are collaborative and aim to provide lasting results for property owners in distress.

Investment Strategy for Passive Income: We hope this blog brought value to you and will bring more valuable content on this topic in future articles.

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