The bills and mortgage tag attached to owning your own home can be a hefty one. For those of you that are homeowners, no one knows better than you the significant investment you have plugged into your house. With rising house prices and climbing inflation, we can reasonably assume that those costs will continue to rise. In America, the average cost of maintaining a home can ring in at $1,204 a month. As you try to budget your family’s finances, thought turns to whether you are getting the most out of your home. Considering its value, is your home giving the best return it can? Interestingly, your home can be earning a little bit of extra income just like a side hustle. I am not referring to price appreciation either. Here’s a few ways your home can begin to generate returns.
Become A Host
Becoming a host for a foreign student has more than one advantage. If you and your family are open to the idea, you can earn income for having a student live with you for a few months while learning about different cultures at the same time. Renting out your spare room to a student visiting the United States of America to study ( and possibly learn English) can see your home earn $200 and above each month. In 2017, the number of international students in America topped 1.18 million. If you do decide to become a host family, you would have to formally apply and submit to interviews by schools in the district. On the plus side, you get to choose when to host students, However, the amount earned will be dependent on the amenities offered and other factors including location to the school district.
You can also explore ways of utilizing the equity you have built up on your home. A common and more recent one especially for senior homeowners, looking to finance their retirement funds is the use of an equity release. Surprisingly, 47 percent of Americans have a retirement income backup plan, according to a survey done by AARP. When using an equity release, you can retain the use of your home but also still receive a stream of income based on your home’s value. Reverse mortgages allow for seniors to borrow against their home’s value and the loan is then settled upon their passing. In most cases, this means the home is then sold to recover the value of the loan. However, the option also exists of repaying the loan early should your financial situation change and you wish to.
Make Money From Those Spare Space
For those of us that may have an unused room or even closet space, you can be looking at an a great option for generating income from your home. More recently, in the more populated cities you can also rent that extra space in your driveway. Online parking communities are now available for homeowners to let their vacant parking spaces without any inconvenience on your part. Similar rental platforms exist for spare storage spaces you may have at home including your garage if it is not being used.
Of course you can also rent out your spare bedroom to an individual or even an office space. When considering this option, be sure you and your family are comfortable with having someone else in your home. Minor adjustments may also be needed to be made to your layout to allow for some separation in some cases.
Finally, consider minor tweaks to your financing such as refinancing. Getting a better rate can be simple and save up hundreds each year in mortgage payments (interest charges). There are many great ways to use your home to earn an income. It is important that you find the best fit for you and your family. Any one of these options can help you begin earning today.