Investing in real estate is generally considered a good idea. Once you have purchased a home, you have an asset which is continually gaining in value. However, this cash is not available until you sell your home. So how can you make money from your home immediately? With a few tweaks, your property could become your very own cash cow, bringing in some extra income each month.
Rent Out a Room or Garage
Many people have a spare room in their house for visiting friends and family. However, for much of the year, this room is unoccupied, meaning you could be missing out on a sizeable income. List the room online for short term lets at a slightly lower rate than the market value. For travellers or those seeking something short term, you can offer a cheap deal. Even if it’s just for a week, you’ve made some extra money.
If you don’t have a spare room to let, consider renting your garage. Some people might just want a place to securely store items, while others may want to permanently keep a car there. If you are happy to leave your car on the driveway or side of the road, you can make a small income letting others use your garage.
Create a Home Studio
If you’re an artistic type, consider turning a spare room or garage into a studio. Building sculptures or paintings is bound to attract attention from passing visitors. You can list your studio online, so that art collectors can come to your home for a viewing.
Finding the right price can be difficult. Buyers typically know the market price and you won’t sell anything if you overprice. However, underpricing makes you look unprofessional and won’t appeal to collectors. If you get it right, however, you could have a decent home business from your hobby.
Homes generally increase in value, but if your mortgage payments are too high, you won’t get the benefit from this. If you are aged 62 or older, consider a reverse mortgage. This is where you can use the equity gained on your home to receive regular payments, rather than paying a monthly mortgage. You are therefore able to use the value gained from your home to boost your pension now, rather than waiting until you can sell.
There could be more income in your home than you realize. You just need to find a way of accessing this money. If you have a spare room, you can either rent this out or turn it into a studio. Alternatively, switch to a cheaper mortgage or reverse mortgage to start receiving paychecks immediately.