Forget buy-to-let! Here’s how I’d invest today to make a passive income


first_imgForget buy-to-let! Here’s how I’d invest today to make a passive income See all posts by Peter Stephens I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Peter Stephens | Saturday, 15th February, 2020 Enter Your Email Address I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Buy-to-let property has historically provided an attractive passive income which has grown at a generous pace. However, a variety of factors mean its appeal could now be lower than it has been in the past.As such, buying a range of FTSE 100 and FTSE 250 shares could be a better means of obtaining a growing passive income. They appear to offer greater tax efficiency, stronger growth potential, and more diversity than undertaking buy-to-let investments.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A diverse portfolioBuilding a diverse portfolio of FTSE 350 shares isn’t an especially challenging process. The falling cost of buying shares and the global nature of the FTSE 100 and FTSE 250, which together generate the majority of their income from outside of the UK, mean most investors can put together a portfolio containing a range of stocks which operate in different sectors and geographies.This could improve their risk/reward ratio compared to buy-to-let investments where, in many cases, a landlord owns a small number of properties in a limited geographic area.With Brexit likely to dominate news headlines in 2020, and risks such as US political uncertainty and a slowdown in China’s growth rate set to continue, diversifying geographically could become increasingly important for income investors. It may provide a more reliable income stream in 2020 and in the coming years.Growth potentialAs well as offering less risk, FTSE 350 shares could deliver rising dividends in the long run. In some cases, mid- and large-cap shares may be able to access higher rates of economic growth across the emerging world. This may enable them to pay rising dividends.Similarly, UK-focused companies may offer relatively high yields at the present time due to investor apathy towards the UK during the Brexit process. They may be able to deliver inflation-beating dividend growth to complement their high yields.Meanwhile, high house prices mean that even if there’s rental growth potential for landlords, a low yield could lead to them receiving a disappointing level of income. This situation is compounded by rising taxes for buy-to-let investors, which could make purchasing FTSE 350 shares through tax-efficient accounts, such as a Stocks and Shares ISA, more attractive on a net basis than holding property.Starting todayNow could be the right time to build a portfolio of FTSE 350 shares to generate a growing passive income. By diversifying across a range of geographies and sectors, you may be able to obtain an attractive and resilient after-tax income return – especially when compared to the prospects on offer through buy-to-let investing.Although the FTSE 100 and FTSE 250 have experienced a volatile start to 2020, their valuations, growth potential, and track records suggest now could be the right time for income investors to buy a range of companies and hold them for the long term. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Image source: Getty Images “This Stock Could Be Like Buying Amazon in 1997”last_img

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