If you’re stuck in a tenancy agreement and desperate to improve your savings to be able to afford the deposit that will make you a homeowner, it’s likely that you think of homeownership in terms of freedom, and in terms of an investment in your future. But for anyone who’s a homeowner, the sense of freedom might not be as exhilarating as you first imagine.In fact, owning a property can be an extremely costly matter that most people struggle with. There’s not only the mortgage repayments to take into consideration. When you buy a property, you are responsible for the maintenance of the place. If you remember your tenant’s days, maintaining a property was something like sweeping the floor regularly, taking the bins out and making sure that you didn’t set the kitchen on fire. As a homeowner, maintenance also includes necessary renovation and improvement works, as well as a home insurance that covers your belongings and your walls and roof. Needless to say that when the boiler goes, you need to pay for a new one, instead of calling the landlord and asking for a repair. And that can rapidly accumulate into large expenses. Consequently, it’s no wonder that for most, the idea of ownership doesn’t go well with getting rich. But there are nevertheless ways in which you can make money out of your property.
Make the most of your property
Change your loan agreement
Month after month, year after year, you pay back your mortgage. However in the current economic climate, it can be difficult to make the payment on your home loan, and that exactly why some owners wonder about their home refinance options. Basically, refinancing means that you choose to get a new mortgage to replace the original loan. Why should you consider this strategy? Simply because you can borrow using a better interest rate and rate. Assuming you’ve got a good credit history, it’s the perfect way to reduce your monthly repayments, and therefore save money. One word of warning, though: People with a poor credit score or too much debt will find refinancing a risky strategy and should stay away from it.
Buy to let
Homeownership doesn’t mean that you have to own only one home. If you’ve made the most of a low housing price, then it’s likely that you might have bought more than one properties. In that case, you’re in a good position to consider letting the places you don’t live in. However if you want to become a successful landlord, you need to be careful about the tenants you choose. But with the right approach, you’ll be able to build a productive income. For a start, no tenant wants to live in a property that hasn’t been maintained, so you need to make sure that the house is fully cleaned and in ideal conditions when you put it on the market. Make sure that you stay on top of all Health & Safety requirements, namely smoke alarms, safe kitchen appliances if you choose to let a furnished or semi-furnished property, and overall structure. Finally, you should leave the tenant search to a professional, a letting agent.
Make the most of that free room
So what if you’ve got a free room in your home? You could consider letting it at the best price, say for holidaymakers. That’s exactly what Airbnb is about. The platform puts you in the driving seat and lets you pick your tenants for a weekend, a week or a month. Joining is free, so you’ve got nothing to worry about. However, as a host you will need to create a detailed profile, adding a picture and ensuring that Airbnb can verify your identity. All you need to do then is to list your space, include its availability as well as the location. Then it’s all in the description and the pictures you show of the room! Good luck!
Ever heard of house flipping?
If you’re enthusiastic about house auctions, then you might have heard about house flipping. In simple terms, house flipping is the process of buying a house at a bargain price and reselling it at your advantage. What does it require? Smart renovation strategy and a lot of attention to details, especially to capture the market fluctuations and make the highest profit. You might need a lot of DIY skills to keep renovation costs low and also a good sense of what people need and want.
Declutter and sell
A minimalist lifestyle is for a lot of homeowners a decor interior design. Admittedly, a minimalist interior provides space and freedom of movement within your property, especially by focusing on decluttering your rooms. But instead of throwing away everything you don’t need anymore, you could sell it at a good price and make money out of the unwanted items in your home. You can list your items on eBay, Craigslist and Bookscouter, but before you do so make sure that they are in good condition. Unless it’s a rare collectable, nobody will want an object that is damaged or stained.
How about opening a B&B?
If you’re a stay-at-home mom, or if you work at home, you may want to consider turning your home into a B&B. Naturally, you will need to have a home with several unused rooms that can be transformed into bedrooms and bathrooms for your guests, as well as invest in professional kitchen appliances. Is it worth it? Yes, if you can create an exquisite service and decor!
Help someone who needs it
If you have a free room and want to make a difference, you can apply to become a foster parent. With over 400,000 children in the foster care system, you can help to change a child’s life for the better. The allowances for foster parents may not make you rich, but they are sufficient to take care of a child. After all, you can get rich emotionally too!
Your property might be expensive to maintain, but it’s not without value. All you need to do is identify its specific value and maximize it, for monetary or emotional return.
