Buying or building a home is one of the most expensive investments you can ever make. It doesn’t matter the type of purchasing option you use; whether you pay with cash or with a mortgage facility. With a mortgage, it will take you several years to offset the loan, meaning you will be living with debt.
That notwithstanding, it is also one of the best investment options available. It doesn’t matter whether you are buying for residential or commercial purposes. It all depends on how you utilize your home. Buying a home for residential purposes means you will be saying goodbye to expensive monthly rents and that nagging property owner. You always have the option to turn your home equity into cash. Most importantly, the value of your property will rise over time, earning you more cash if you decide to sell.
But wait, you don’t have to wait that long to make money out of your residential home. You can still earn some good cash from it without necessarily putting it on sale. Here is how…….
Making money from your home
With the cost of living getting higher and higher each day, you need extra income to meet your daily needs. But, where will this extra income come from? By now you are asking yourself “how will I raise extra income in this difficult economy, I only have one job”. Or, you may be saying, “I’m a retiree with no business, how can I earn extra cash aside from my monthly pension payments.” Well, I am also asking, do you own a home? If yes, you can make it a source of income through the following means.
Access a reverse mortgage loan
If you are a senior above 62 years, you can use part or all of your home equity for a reverse mortgage. A reverse mortgage allows the property owner to continue living in the house until their demise when the lender comes in to sell the house. If your heirs are still interested in the house, they can pay off the loan through home refinancing or cash to keep it.
A reverse mortgage helps seniors to have enough funds to cover basic expenditures or attend to their health needs. You can use the money to start a small business while in retirement to gain you steady income. You can use a reverse mortgage calculator to calculate how much a reverse mortgage your house is worth.
Rent out extra rooms
If you have a four-bedroom house but currently utilizing just two rooms, you can give the extra two rooms out on rent. Ideally, a four-bedroom house should have two bathrooms, so issues of comfort, convenience, and having to share your bathroom with others, may not arise. Depending on your home design, your tenants, may not have access to or need to use your living room before getting to their rooms.
Having tenants means, you will be sharing the bills, which will ease some pressure on your finances. That aside, the monthly rents can cater to some of your household needs.
List the unused rooms on Airbnb
If the idea of having a permanent tenant doesn’t sound good to you, there are other alternatives. You can list your extra rooms on Airbnb. On Airbnb, you can set your rates and decide when, and to whom to give your room for the short stay. So, you wouldn’t have to deal with having long-term tenants who may become a thorn in your flesh. Listening on Airbnb can earn you very good money if you do it right, and your home is also in a popular and safe place.
Use your garage for a business
Every community has available opportunities one can harness to create consistent cash flow. You can look out for such business opportunities and start right home from your garage. For example, if your home is close to a street, you can start a mini-grocery store or a bar, using your garage. Professionals like plumbers, electricians, fashion designers, consultants, etc. can also start a business from home.
However, your business should be in tandem with the rules and regulations of your neighborhood, especially if you live in an HOA community.
Rent out your yard
If your home has a big yard with various amenities like a nice garden, swimming pool, barns, etc. you can rent it out for programs like parties. You can even organize such events on your own with the right permit. Some individuals can also pass by for short hourly stays to enjoy the serenity of your home environment. Your big yard can also be used for dog walking, while neighbors can rent it for picnics. On apps like Swimply, you can list your swimming pool for interested persons to patronize it for hourly rates. Other apps like Sniffspot can help you rent your yard.
You don’t always need to sell your home to raise money in times of need. All the above listed are great and smart ways to make good cash from your property. Just plan well and execute your intentions using the right channels.