Having a passive income besides your regular income is a great thing. It is one of the ways to become financially independent. A passive income helps you during times when you cannot work and you need money. Investments are a good source of passive income. You need to build a good investment portfolio to start generating high passive income. In this article, we are going to highlight some passive income ideas in South Africa.
What is Passive Income?
A passive income is an income that you get as a result of investments and you don’t have to work for it constantly. Some of the passive income sources include dividends, properties, and royalties.
Best Passive Income Opportunities in South Africa
The following are some of the best passive income ideas South Africa.
Blogging is one of the best passive income ideas South Africa. To start a blog, you just need to identify an area you are good at and then provide content. You need to buy a domain name and a hosting service for your website.
Blogging requires a lot of hard work and persistence. Once your blog starts to get significant traffic, you can start monetizing it by displaying ads from AdSense, Ezoic, or ShareASale or affiliate marketing. You can also make money through a blog by selling your own products.
Read more: Best affiliate programs in South Africa.
2. Real Estate
Real Estate is also one of the best passive income opportunities in South Africa. You can invest in rental buildings, commercial buildings, or land, and at the end of the month or year, you will be getting rent or lease. The only challenge with real estate investments is that they are capital intensive. However, they generate high passive income.
YouTube channel is another passive income South Africa. If you have some video content you can offer, start a YouTube channel. You can monetize a YouTube channel using adverts or affiliate marketing. To start monetizing your YouTube channel, you need at least 1,000 subscribers and 4,000 watch time hours in the last 12 months.
4. Rent Your Home
You can earn a passive income in South Africa by renting out your home. If you have a house that you don’t use, rent it and allow it to generate for you a passive income. You can rent your house to companies like Airbnb, VRBO and Vacasa. These companies provide accommodation to people who travel across the world.
You just need to list your house on these websites. Airbnb will charge you 3% on every booking while VRBO charges 5% per booking and an extra 3% if the guest pays using a credit card.
5. Peer to Peer Lending
You can earn a passive income in South Africa by lending your money to companies or individuals. To get started, you just need to join a peer-to-peer lending platform and lend money. The money you have lent out will be earning interest over the loan period. Make sure to use regulated peer-to-peer lending platforms to avoid losing your money.
6. Join Uber or Bolt
If you have a car, it can generate for you a passive income by renting it to app-hailing taxis like Uber and Bolt. At the end of the day, week or month, the car will be generating some passive income for you. To get started, you just need to have a sedan car and then you can rent it out to taxi companies. For example, Uber pays R8,000 every week.
7. Rent Your Car
If you have a car that you don’t use frequently, you can use it to generate a passive income. You just need to hire a driver. He or she can be ferrying people from one location to the other in South Africa.
8. Invest in Stocks
Investing is stocks is one of the best passive income investments South Africa. You will be earning dividends by buying stocks. To generate enough dividends from stocks, you need to pick the right stocks. Go for stocks that have a good track record in issuing dividends for the last 2 years. Some of the companies with the best dividends in South Africa include Fortress REIT B, Hyprop Investments, Redefine Properties, and Vukile Property Fund.
Read more: Best investment companies in South Africa.
9. Royalties from Music and Videos
You can generate a passive income in South Africa from royalties from music and videos. If you have some music or videos, you can upload them on sites like TuneCore and CD Baby. You will be earning loyalty when people listen or download them.
10. Open a Savings Account
You can open a savings account that can be earning you some interest. It is one of the best passive income streams South Africa. At the end of the year, you will have earned some interest. Look for banks that offer high-interest rates on savings.
The downside of a savings account is when the economy weakens and interest rates reduce. The amounts of payouts are affected by inflation. Holding all factors constant, a savings account can be a good source of passive income.
Summary of Best Passive Income Ideas South Africa
A passive income is a great way to become financially independent. A passive income is a boost to your regular income. The above are some excellent ways you can generate a passive income in South Africa. However, it is worth noting that some investments require time to start generating a passive income.