Is it really possible to build passive revenue nowadays?Real estate market is falling down, stocks are falling down too , and it's more hard to get a decent yield.
Bonds are possibly in a bublle right now, so how should you transform your capital in a passive income stream?
Well Scpi are the best tool for passive income:They buy property and lease it to businesses, they don't have any debt, they look after everything.
All the financiers have to do is to way for their earnings to be distributed every quarter.
No worries, nothing to do, and the yield is reasonably good: 5,30% net in 2012.
Advantages are numerous.
Reit buy many buildings, so backers own a diversified property portfolio, which spreads the risk.
Reit management firm costs are fixed and can not be modified, which puts the costs in hand.
Scpi are most of the time debt free.
They may only contract debt if they've a great investing opportunity, but the debt will be paid back to the bank if there are new subscribers.
So if we are facing a debt major crisis, Scpi will be safe, because they have much more assets than liabilities.
If we have a financial crisis, Reit will be safe as well , because they own tangible assets, which supply a secured income.
Compared with bank savings plans, Reit yields are miles better, above 5% net with a limited risk is great.
So what are the hazards?
Well there are typically 3 hazards.
1. Capital isn't secured. Reit price depends upon their assets value. So if we face a real estate crisis, their value might drop also.
2. Yield could drop too. If there are empty lots, or if renters negotiate the rent price down 20 or 30 percents, then the net yield will drop.
3. If backers sell massively their shares, then it'll become tricky to sell them in any way. Because if you would like to sell a Scpi, you want a purchaser.
But so far so good. Reit are popular, secured, and supply a stable yield.
Bonds are possibly in a bublle right now, so how should you transform your capital in a passive income stream?
Well Scpi are the best tool for passive income:They buy property and lease it to businesses, they don't have any debt, they look after everything.
All the financiers have to do is to way for their earnings to be distributed every quarter.
No worries, nothing to do, and the yield is reasonably good: 5,30% net in 2012.
Advantages are numerous.
Reit buy many buildings, so backers own a diversified property portfolio, which spreads the risk.
Reit management firm costs are fixed and can not be modified, which puts the costs in hand.
Scpi are most of the time debt free.
They may only contract debt if they've a great investing opportunity, but the debt will be paid back to the bank if there are new subscribers.
So if we are facing a debt major crisis, Scpi will be safe, because they have much more assets than liabilities.
If we have a financial crisis, Reit will be safe as well , because they own tangible assets, which supply a secured income.
Compared with bank savings plans, Reit yields are miles better, above 5% net with a limited risk is great.
So what are the hazards?
Well there are typically 3 hazards.
1. Capital isn't secured. Reit price depends upon their assets value. So if we face a real estate crisis, their value might drop also.
2. Yield could drop too. If there are empty lots, or if renters negotiate the rent price down 20 or 30 percents, then the net yield will drop.
3. If backers sell massively their shares, then it'll become tricky to sell them in any way. Because if you would like to sell a Scpi, you want a purchaser.
But so far so good. Reit are popular, secured, and supply a stable yield.
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