Once you have acquired a property, found a tenant, and signed a rental contract (typically for a few years, sometimes for many years), the income is almost guaranteed for that period. This makes property rental an extremely passive way to generate income, with much less uncertainty and fewer moving parts compared to other investments.

While buying property may seem straightforward, it’s actually a complex topic that requires deep understanding because of the large sums involved, the options present, and the funding alternatives available. That’s why one of my life’s works is to share property investing insights with those open to learning.

Regardless of where you are, you are likely to find good property mentors or investors in your area. Remember that a good mentor is someone who has accumulated a great deal of experience in the industry; makes a good living from it (in this case, significant rental income); and Is open and willing to share her knowledge.

Property is a good example of an asset, but there are many others (art, bonds, gold, stocks, wine, etc). The key is to create assets that generate passive income (not all do). When your passive income exceeds your expenses, you achieve financial freedom.

I need to mention, for the sake of completeness, that creating a passive-income stream is not the only way of achieving financial freedom. Other ways are to make an investment that provides extraordinary returns; pick a profession that leverages your natural talent in some field then work long and hard to develop that talent; that means pursuing advanced studies to a level that you become a recognised authority in your field; or that involves highly risky work that pays extremely well. These kinds of professions can give you such an advantage that you are able to accumulate so much wealth that you can retire without ever having to work again or cultivate a source of passive income. However, very, very few people are lucky enough, talented enough, or smart enough to be able to achieve these.