Last Updated on Apr 17, 2020 by James W
An Englishman’s home is his castle, or so the saying goes. Most of us dream of owning our own home, but the reality isn’t always what it’s cracked up to be. Homeownership is a huge financial burden. Whereas a tenant can ask his landlord to fix the boiler or replace a broken window, a homeowner is responsible for all maintenance charges, no matter how big they are. And if you are still paying a mortgage, you have to find the money to cover your monthly payments.
The good news is that you can make your home work a bit harder. With some smart decision-making, your property can make you money – here’s how.
The most obvious way to make money from a property is to sell it. As long as you sell it for more money than you paid, you can make a profit. Of course, that isn’t always easy, especially if you bought at the height of a price surge and now the market has dropped. But, if you buy wisely – i.e. in the right area at the right time – and you hang on to the property for a while, you can’t lose.
If you want to make serious money from buying/selling property, you need to put a lot of effort in. Check out successful property developers and see how they make their money. By using them as an example, you might be able to emulate their success.
Rent It Out
Do you have a spare room or three? Do you live in a scenic area frequented by tourists? If so, you should have no problem renting out rooms to tourists, or even the entire property if you have somewhere else to stay. Websites such as Airbnb make short-term letting a breeze. All you have to do is create an attractive listing with some nice photos, decide how much your property is worth, and then sit back and wait for the money to come rolling in.
Remember that you don’t need to let out your property all year. You could live in it for 11 months of the year and then rent it out during a popular sporting event (or similar) and earn a premium. People who live near major sporting venues often make serious money for one or two weeks a year by letting their home out to visitors who come to watch the big match or sports event. Use this time to take a vacation or visit family and friends.
Anyone with equity in their home can release this money via a mortgage. Re-mortgaging is an easy way to raise cash for whatever purpose you like. You will need a decent amount of equity in the property and be eligible for a mortgage, but if you tick all the right boxes, you can look forward to a cash lump sum. Seniors can apply for an AAG reverse mortgage that makes monthly payments rather than a lump sum. They can use the cash to help supplement their retirement income.
Other ways to make money from your home include allowing it to be used as a location in a movie, dressing it up for magazine shoots, and opening a business there, e.g. a café or B&B.