We’re all looking for ways to improve ourselves financially. While buying a house gives us the opportunity to build equity, there are other ways you can make money by becoming a homeowner.
I don’t know anyone who couldn’t use more money. In fact, a good way to build wealth is to have multiple streams of income. If you’re looking for ways to bring in more cash, here’s how your first home can help you achieve that goal.
It’s a way to build equity. When you pay rent, every penny goes to your landlord. But when you pay your mortgage, the amount you owe on the house decreases and your equity in the house rises. As your equity increases so too does your net worth. In fact, for many people, their home is their largest asset.
You can rent it out. A multi-family house can be turned into a steady income stream. You can live in one unit and rent out the other. Even if you don’t have an entire apartment to rent out, you can make money by renting out a room. If you live in an area that’s popular with tourists, you might even rent your home out on a service like AirBnB during tourist season as long as you can find another affordable living situation for yourself.
You can make money on storage space. If you have storage space that you’re not using, you may be able to make money by renting it out. Some people who live in small spaces are unable to fit all of their belongings in their homes. Rather than renting a storage unit, they may find it more convenient or inexpensive to pay you to store their items. An unused garage or shed can also house someone’s larger items such as a small boat or camping equipment.
You can run a Bed and Breakfast. A home provides a lot of options for entrepreneurs. If you have some extra rooms and you like to cook, you may be able to make money by catering to travelers. Bed and Breakfasts are appealing to many people who don’t want to stay in a hotel. However, as with any entrepreneurial venture, make sure you research the ins and outs of starting such a business before cementing your plans.
It could give you a business tax deduction. If you’re a small business owner who works from home, you could take advantage of the home office deduction. The Internal Revenue Service allows business owners who work from home to deduct certain expenses for using their homes to conduct business.
The truth of the matter is that homeownership is an excellent way to build financial stability for yourself and your family. If you’re worried that you don’t have the money to afford a house right now, consider that $35,000 is the average amount of down payment money that HomeFree-USA finds for our members. Become a member of HomeFree-USA today and let us start looking for down payment money for you. Investing in yourself through homeownership can pay off financially in so many ways.