Getting on the property ladder is an ambition and long term goal for many people. Owning your own home is one of those things that can feel like such a big deal, and of course, you appreciate that it can be one of the biggest purchases that you can make in your lifetime. It is also one of the most stressful things that you can go through.
But once you are on the property ladder you are on the path to making money and also helping towards your pension pot in the future. But could your property purchase or additional purchases make you more? There are ways to take advantage of the money making possibilities your property could create and I thought I would share with you what some of them are.
Can your property increase in value?
The main answer to this question is yes. A property is one of those things that will increase in value over time, it is one of the best investments you can make hence why so many people are desperate to get onto the property ladder. However, while a property will steadily increase in value, there are things that you can do to your home to speed the process up. People consider some of these options to raise capital quickly, or enable them to move onto bigger properties or into better areas. So here are some of the ways that you can do that.
Extending to add more square footage
One of the first things to consider would be if your property would warrant an extension. Is there any scope to add more square footage? That might be in the living areas down stairs, or it could be to take advantage of a garage and either extending into it for more living or over it for extra bedrooms. This will have one of the biggest costs in terms of investment into your property, but it can give you a big reward as your property is worth more with added reception rooms or bedrooms. You can consider funding to help you get the work done and a quick look online will help you find the best Bridging Loan deals. However, you may need to get planning permission for some of the things you want to do, so it can also be a long drawn out process.
Building on land
If your home sits on a decent sized pot of land, and perhaps you have done what you can to your home, then you may want to consider putting that land to better use. You could consider selling a pot of it which could be bought by a builder who will probably plan to build on it, or you could take control of it yourself and build on your land. This means that you have control over the type of house or property that will be built near ours, so you can take into account how you feel in terms of being close and also the height of the property. Once it is completed, and while it may have cost you to build the house, selling the land with the home can give you a significant boost to your finances.
Updating the property
Finally, sticking with your home and finding ways to increase the value I understand that you may not have the option to extend, but that doesn’t mean you can’t improve what you already have. A new kitchen and/or bathroom especially in home can help to increase the value massively. Decoration, new walls, added features like built in wardrobes or storage, they can all make a big difference to your home in terms of value.
Can you make money in other ways?
You may have done all you can for your home, and perhaps you don’t want to move just yet, so you may be wondering if there are any other ways you can make some money from your property? You may be surprised that there are some different alternative ways to make some money.
Using part of your home as a holiday let
There has been a huge rise in the world of self catering holidays and holiday lets recently and thanks to websites like Airbnb you can really take advantage of it in your own home. Perhaps you have an area of your home that could be converted into a holiday let such as an annex or granny flat, this could then serve you an income in the holiday season and become a little business. Some even consider putting there whole home on the holiday rental market, and then moving out themselves while someone rents theirs. Staying with relatives or taking a holiday themselves. The money made could pay for your own holiday meaning you are not out of pocket.
Renting out parking
If you live close to a trains station, public transport links or even in the city, then you could take advantage of renting out space for parking. If youa Yves drive you don’t use, or ample space for cars, then allowing people to rent a space could be a quick money making opportunity for you as well as offering a cheaper effective alternative to the person needing the car space.
Finally, if you have a big enough home with ample space, perhaps you are living on your own or your children have left, then you may want consider a lodger. This is someone who rents out a room in your home and shares the living space. It might not be for everyone, but the rental income can be quite profitable, especially if you live close to transport links or a city. People on short term contracts with work are always looking for more flexible living arrangements.
Additional properties could give you more income
Finally, there are other ways that having a property could work in your favour. This could mean buying additional properties as well as your own. Your home may be your forever home, and you may be very happy and settled and not want to do more to it. But you could make money from property in different ways, so I thought I would share with you the last few options to consider.
Renting out property for an income
The rental market is booming at the moment as more and more people are struggling to save up their deposits and get on the housing ladder. So buying a house to rent out could be very lucrative. You not only get the long term value from your investment as a property value should increase over time, but you also get the short term income from the rental, which could cover the mortgage and give you a little extra income.
Buying a holiday rental
The next thing to consider would be to buy a property abroad and not only use it as your holiday home but also rent out to holiday makers. This again can be quite profitable as a short term rental on a holiday let can often equate to a monthly rent on a long term lease. This could mean that your holiday home is paid for just by the income and still give you some profit.
Renovating property for quick profits
Finally, there are also an abundance of properties on the market right now that need some work and TLC. This is where your an buy them and renovate them to sell. It can be quite the money maker if you make some wise decisions on how you spend your budget, and could even help you develop your own property portfolio for the future.
I hope that this has given you some inspiration on how you can make money from your property.
*This is a collaborative post.
Boost your income in 30 days!
Boost your income with this FREE 30 day money-making crash course. Plus get exclusive access to our Facebook group!