It’s the biggest asset you have.
House prices are high, mortgages are large and times are tight for many people. When you combine that with the fact that a home is the largest investment most of us will make in our lifetimes, it’s not surprising that more and more people are looking to see some sort of return on that investment. While in days gone by the return on a property investment would strictly be limited to the amount of profit you could make on a sale, today that’s not the case.
If you have a home that you own (with or without a home loan) then there are ways that you can make money from it. This can be useful in all sorts of ways. You can avoid having to borrow money for a big ticket item like a new car – that means no interest payment on your borrowing so especially useful if you have a poor credit record and would need a bad credit loan in order to borrow at all. Even if you have a decent credit score and could get a secured loan with a low interest rate you will still be saving money by raising it via your own asset.
Rent your home out
If you’re lucky enough to have a second home, you’re planning to go travelling or you own a home in a premium area and are considering moving elsewhere, there is cash to be made from long-term lets. If you have a mortgage you’ll need to make sure the mortgage allows for you to become a landlord. It’s also important to make sure you understand landlord legal requirements – such as the annual check of gas facilities. Average rents are around $1,200 a month up to $1,600 a month in popular areas so, as long as you have a roof over your head elsewhere, there’s a lot of cash to be made.
Become a B&B
If long-term lets are too much of a commitment, the gig economy provides the perfect alternative. Sites like AirBnB provide the opportunity to generate short-term rental income from visiting business people, families on holiday, students, travellers – anyone looking for a home from home in the town where you live. You can rent out the entire property or just a space in it, such as a bedroom. Let one room for 46 nights a year at $130 a night and you could net $6,000.
Turn your home into a ‘location’
You don’t have to live in a castle or an expensive loft to have a space usable as a location. Fashion photo shoots, film shoots and ad campaigns all need a setting for their stories, which could be anything from a cosy family sitting room, to an art deco ballroom. Sign up with a location agency to get your home listed as a space for hire. Alternatively, set up a website or use social media to display images of the space available.
Convert for extra cash
If you have a space in your home that’s currently going unused this could prove to be a serious money-spinner with a little bit of conversion. For example, you might have a basement or an attic, or an extension that needs a little love. If you do enough work to create a self contained flat then you can rent this out at a much higher rate than a single room. Pitch the space to appeal to a cool Millennial crowd – who generally prefer self-catering over hotels – and you could bring in several hundred per night.