No one has ever claimed that getting onto the property market is easy; it’s not. In fact, it’s one of the hardest financial moves any of us could ever make. And, even once we’ve got our feet under the table, there are the mortgage repayments to consider. In this day and age, it’s unlikely anyone would have enough money to buy a house up front. As such, most of us are tied to monthly repayments, often until the day we die. With that in mind, it makes sense that you would want to turn your home into an investment. It’s likely your most expensive asset, after all, so it’d be good to see some return on it. Plus, any money you receive from your property will mean you can pay your mortgage back that bit faster. That’s got to be good, right? Most of us would prefer to be debt free by retirement.
Of course, turning your home into an investment is a personal decision. It’s not going to suit everyone. Despite how much money we spend on our homes, we see them in terms of emotions, rather than business. And, so we should. But, if you want to make the investment side of things work, you may need to rethink your attachment. If you don’t think you could untie your feelings about the property, this may not be best for you. In fact, to avoid that emotional side, it might be best to turn your house into an investment before you’ve moved into it. That way, you’ll be better able to be subjective. But, if you think this would be too much for you, don’t do it. Your home should, above all, be a comfortable space where you can unwind. If you think you could turn some business prowess to the pursuit, though, here are some money making tips worth considering.
RENT IT OUT
The most obvious point is, of course, renting your home to others. It may seem strange to own a house without living in it, but it’s a sure way to fast mortgage repayments. And, you don’t have to offer a long-term lease if you don’t want to. Having someone rent for six months to a year would still make a huge difference to you. All you would need to do is look at other houses for rent which could tide you over in the meantime. Again, look out for short-lease properties so that you can move out as soon as you need to. It may seem like a convoluted way of doing things, but finding a cheap rental means you’ll make much more than you’re spending. Before you make this decision, though, make sure to research rent prices in your area. While some, inner-city areas can fetch big bucks, a house in the middle of nowhere may not make as much. No one likes the idea of letting someone else live in their home, so make sure it’d pay off in the end. Otherwise, you may be better off considering other options.
GET A LODGER
If you want to stay close to home, you could always rent a spare room to a lodger. This option is perfect if you have a self-contained space, like an attic conversion or an annex. That way, your lodger wouldn’t inconvenience your life in any real way. If they have their own front door, they would be completely separate from you. In many countries, renting out space in your home also makes you eligible for tax breaks. So, it’s an option worth taking. Even if you don’t have a separate area, you could rent out your spare room. You would have to share your front door and kitchen this way, but it might not be as bad as you’re expecting. Depending on who your lodger is, they may become a part of the family. To ensure you choose someone you can trust, do thorough checks before agreeing to anything. Background checks and references can go a long way. Consider, too, making the lease long-term. If you have a few different lodgers in a short space of time, it’ll be harder to connect to any of them. But, if you rent to the same person for an extended period, the arrangement could work for everyone.
THE HOLIDAY MAKERS
If you don’t like the idea of renting your home for extended periods, you could turn to holiday makers for your money. If you’re business minded and have the time, you could always transform your home into a B&B. This isn’t for the faint-hearted, though. It’s important you consider carefully. While you would get the chance to continue living in the space, it wouldn’t be yours. You would have to share it with holidaymakers quite often to see a return. If you don’t like the idea of a constant invasion of privacy, you could consider entering the world of the Airbnb. This option means you would be able to host guests in your spare room, without too much inconvenience to you. If you have somewhere else to stay during summer months, you could offer your whole house for holiday rental. This is a fantastic option if family members are willing to put you up in the meantime. Though, the short nature of the business means it wouldn’t be practical if you had to rent somewhere in the interim.
RENT YOUR DRIVE
Your home can make you money, even if you don’t want anyone else staying in it. Drive rentals are becoming big business as parking prices are skyrocketing. Bear in mind, though, that this option will only work if you live in a city, or at least near to one. No one likes to commute, but not everyone can afford to pay to park each day. As such, a spare space on your drive stands to make you big bucks. Take a look at other drive rentals in areas like yours to get an idea of how much you could make this way. This is the least invasive rental option. Other than the arrival of a car on your drive each day, your life won’t change. Your home will still be yours. And, it’ll be earning you money in the process. If you are sharing a drive, make sure to set clear rules. A harmonious share is a happy one. Make sure neither of you block each other in or interfere with each other’s cars in any way.
MAKE HOME IMPROVEMENTS
Rentals aside, you could earn money from your home just be making some improvements. Certain renovations stand to make you real money in the future if you can afford to invest in them. If you’re up for the challenge, you could even buy a fixer-upper. Not only are these cheaper to buy, but they’re also easier to increase value on. So, it’s a winner all around. If you don’t like that idea, you could always move into a top quality home and make improvements gradually. Certain renovations stand to make you more money. Work done in kitchens, for example, increases value much more than that done on, say, bathrooms. Attic conversions and outhouses are another way to see a decent return. Bear in mind that you’ll need to get planning permission for extreme renovations. Make sure to do everything through the right channels. If you fail to get the correct permission, your council could demand you put everything back as it was. So, you’ll lose a fair amount of money and be no better off. Patience can also help here. If you aren’t planning to be in the property long, consider whether it’s worth spending the money. While it will increase value, it’ll also set you back a fair bit to start with. The best way to see a return is to wait until house prices rise.
Seeing your home as an investment may not be easy, but it’s important that you do. As you can see from the list above, there are a variety of ways to make some return. If you aren’t happy with one option, it’s worth considering another. You can make this investment as invasive to your life as you want. Or, you could ensure it makes no real difference to you. If you’re unsure whether renting would work, try renting your drive, or hosting holiday guests. This will help you see for sure whether it’s a workable situation. You may find that it’s not as invasive as you think it’s going to be. The key to success is often compromise. If you have Airbnb guests, there’s nothing wrong with making some rooms out of bounds. That way, you can keep some personal space if you need it. If you don’t feel comfortable committing to making breakfast, opt for a breakfast hamper instead. These can be effective, and many guests prefer them. After all, as hard as it is for you to let someone into your home, it’s not nice for them to feel like they’re imposing!