Part 6/11:
While rental income can be relatively passive—especially with a management agent handling tenant issues—it does come with significant initial investment costs. The speaker’s investment totaled around £36,600 for the property, covering various fees. They noted that while the passive income aspect is appealing, the responsibilities of property management and potential stresses from tenants should not be underestimated.
For those who prefer a less hands-on approach, the speaker introduces Real Estate Investment Trusts (REITs) as an alternative. These companies manage portfolios of real estate assets and provide investors a chance to earn passive income without owning physical property.