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Insight & Opinion

Little known ways to generate a passive income

Author: Gemma

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For many years, investors have been searching for new ways to generate a passive income from property.

From traditional buy-to-let to new alternative investment and income generating assets like student property and care homes, there are plenty of options for investors who wish to invest their money to receive a passive income.

What is the best option for investors?

With so many products available it can be difficult to decipher a stable investment. For those looking to expand their property portfolio outside the typical ‘norms’,  Experience Invest has some interesting opportunities currently available that have the ability to produce up to 10% NET per annum assured.

office1

The UK’s commercial market

The UK’s commercial property market is experiencing a ‘boom’. Commercial property values increased for 10 consecutive months in February according to Investment Property Databank, with average property values increasing by 0.6% in February 2014.

Highlighting the resilience of the sector, returns from the asset class have almost reached their 2010 peak (IPD) and investors are once again drawn to this income generating asset class.

Alternative offerings

If you’re uncomfortable venturing into common, alternative investments such as wine, forestry and solar power, there are some great alternative commercial property products available on the market.

Fully managed office suites can provide investors with a passive income. This type of asset allows investors to take advantage of the UK’s commercial property market and expand their portfolio at a lower cost and still secure higher than average returns.

These low entry level investments provide investors with a low entry level opportunity to enter the UK’s thriving commercial property market and will generate returns between 8% and 10% per annum.

The UK’s residential market

With low interest rates, rising mortgage approvals and an influx of first time buyers, the UK’s residential market has flourished over the past year.

Despite a healthy growth, property prices are still below their 2008 peak, making now a sensible time to enter the UK’s residential market.

student property

Alternative buy-to-let offerings

Student accommodation falls between the commercial and residential markets. Student property has been hailed as the UK’s number 1 performing asset class by Knight Frank as the sector has outperformed other alternative options since 2011.

Realistically, investors should expect NET returns between 8% and 10% from this asset class. Studio and en-suite rooms within a purpose-built complex are the top choice for investors and tenants and these schemes tend to be fully managed on the behalf of investors.

It’s rare to find but below market value buy-to-let property is still available on the market. Off-plan options provide investors with a lower entry level – as mortgages are not available on these schemes – and some may offer an assured rental period.

Investors are attracted to below market value, buy-to-let properties as they will provide a regular rental return and offer strong capital appreciation prospects.

How to generate a passive income from property

Whether you’re looking for a low entry level investment, a regular monthly income or would like to secure a property investment which will offer strong capital appreciation prospects, Experience Invest has a passive income product for you. Contact us today for more information.

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