Thursday, October 4, 2012

Ways Your House Can Earn You Money

Housing (Photo credit: james.thompson)
When financial times are tough, we have to make our assets work for us. A house is a large investment and it is important to ensure that the money that has been invested in it is working as hard as it can. Of course, we invest a lot emotionally into our homes as well, but sometimes it helps to view the house from a different perspective, and think of the fiscal benefits our homes could provide. 
By viewing a house as a moneymaking machine as well as a home, ideas for generating extra cash will soon come flooding in. Here are a few to start off with: 

Almost everything is rentable 

Perhaps the most familiar moneymaking scenario is renting out the spare room to a lodger. There are many types of lodgers out there looking for a room. Whether it is a student during the current college term, out-of-town workers looking for Monday to Friday accommodations, or tourists seeking somewhere to spend a few days or even a single night, there is plenty of flexibility in the room rental model. 
It may seem hard to believe, but the rental concept can be extended to cover many other things related to the home. There are people out there willing to pay good money to rent the driveway (for parking), the garage space, and even the back yard of a house (to pitch a tent for a party). Websites exist that can help hook up homeowners with people looking to rent various parts of the house or property. There are even people who will be looking to rent the lawnmower or gardening equipment for a couple of hours. If you are looking to generate some income, take another look at your home and its contents with fresh eyes - instead of being a money pit, it could be making money. 

Buy another house 

We have established that houses can often be efficient moneymaking vehicles, so if there is room in the budget, why not buy another? Admittedly, not many people have spare cash around these days, but those who do are certainly not getting great returns from savings accounts or CDs. It will usually be a far better idea to put any extra money into investments that pay good returns. With property prices at historic lows in many areas and rentals in high demand, becoming a landlord is increasingly popular for those with money to invest. Choose property in attractive areas where rental demand outstrips supply. There are many US houses for sale in premium locations that would make prime vacation rentals and yield a healthy return on investment. 

Film star homes 

Spectacular, unique, well located, or just plain quirky homes are always in demand as film locations. TV and film companies are willing to pay good money in return for the use of a home as a film set. Registering with a locations agency can be a relatively simple process and if your home has that ‘star quality’, the house could be earning hundreds of dollars a day just for looking good.

Remodel for great returns 

Another sure-fire way of making money from a home is by increasing its value through remodeling. Home improvements such as unique designer kitchens, luxury bathrooms, extra bedrooms, new flooring, garden rooms and conservatories, landscaped gardens and driveways will all help to boost resale profits. This long-term route may take time to reap rewards, but can be very financially beneficial. 
So remember, home is where the heart is, but when money is tight, home can also be where the cash is. 

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