Household properties are a significant investment for many families. It forms a big part of family budgets – paying for mortgage, property taxes, home insurance, as well as house maintenance costs. Figures from the Bureau of Labour Statistics reveal that housing is the biggest item in family budgets in America, and represents 16% of the total budget, with a further 11% spent on household operational costs to maintain the home; and rising on average by 3.4% each year. Your family property is an asset that is expensive to buy and maintain, and will, therefore, be financially wise to take advantage of opportunities available to use your home to get money to look after yourself and your family.
Using rental opportunities
You can use your home to generate income in a number of ways. Earning income from renting out various spaces around your home is a good idea. You can make money by renting out a spare or unused room to a lodger, space in your home for storage, as an office space, for photo shoots, TV and film recording, or your parking space during big events around your home. While on holiday, you could rent your home for short-term stays – students, professionals, and business people tend to look for places to live on a short-term basis; or earn money on your home as a holiday rental.
Working from your home for money
You can also get the most from your home and make money by using your home as your work or business location, thereby saving on travel costs and business rents. Increasing flexible working patterns offered by employers, as well as the rise in small businesses, freelancing and contracting means that you can work from any location using the internet and modern communications tools. Whether you are a stay at home parent or have a job already on a part-time basis, you have the opportunity to earn income by taking up work you can perform from your home location.
Tapping into your equity
About 64% of families own the homes they live in. This means that families can also get money from the increase in the value of their homes – the equity. Data from Zillow Research show that on average, the value of homes appreciate by 3-5% a year. When you sell your property, you can make gains from the increase in its value. However, many homeowners, especially those with families as well as those in retirement need their homes now for shelter and so cannot sell their properties; you can use other options to convert your equity into cash in a way that will benefit your family.
Your property may be your biggest asset and you spend a considerable amount of your family’s money to maintain it. In addition to enjoying the property as a home for you and your family, there are many opportunities for you to generate income or raise finance for your business or family needs.