Homes are a valuable investment. For most Americans, housing is the single biggest payment they will make across their lifetime, averaging at about 34% of expenses per month. However, there are a surprising number of ways homeowners can make money back on their home investment without putting it on the market.
Whether you recently purchased a house or have been paying off the same mortgage for decades; knowing how to boost your profits from a home investment can save you money with minimal effort and risk.
Rethink your monthly bills
Take a good, hard look at your financial statements to make sure you aren’t overpaying for home insurance. Also take a look at your heat/electricity, your outdated cable bill, etc. In fact, most people overpay on everything from their electric bill to car insurance, a change that often requires simply switching your provider or coverage plan.
If you’re over the age of 62, you may be eligible for a reverse mortgage by tapping into your home equity to supplement your monthly income. The amount you are eligible to receive depends on how much money you’ve already paid towards your mortgage. Often times reverse mortgages are a good option for new retirees looking to earn some extra cash.
Rent out your spare bedroom
If you have a guest room, loft space, comfortable attic, etc. consider advertising it for short-term rentals on sites like Airbnb and HomeAway. In major cities, regular Airbnb hosts earn about 80% of their housing payment back by offering up their homes to guests.
Another option would be to make your home a multi-family property. This way you can lease out long-term rentals, but short-term stays typically require far less paperwork.
Smart Ways To Maximize Your Home Investment
Rent out your extra space
If you aren’t interested in hosting renters and have extra space, consider renting your space as storage. There’s a rising demand for storage across America and you can advertise your home storage via Craiglist, the Pennysaver, or the like.
Be sure to stress that your storage is weather-controlled (so clothes won’t grow moldy) and secure/lockable to attract potential renters. You can also rent out extra driveway space or garage space for people looking to park their cars without paying for access to a pricey parking lot.
It pays, ultimately, to buy a home when you make a good investment and know how to showcase your assets. Instead of a getting a side gig, turn your house into your side gig by making the most of your space.