Your home: a house in which you can revel in the everyday beauty of delectable domesticity, but have you ever thought about ways in which it could make you money? Here are five ideas you may want to consider – after all, everyone needs money to achieve the lovely dreams on their very own Big List.
Remortgage
Although the global financial crisis caused house prices to crash everywhere, in most places they have recovered to pre-2007 levels. If you bought during the crash, you may have built up equity which you could release through remortgaging your home. Even if you don’t want to access cash, it may still be worth checking out if you could remortgage for a lower amount now that you’ve paid off some of the capital. Now is a great time to take advantage of locking in the low interest rates – and the best part is, it could also lower your monthly payments.
Downsizing
If you want to release equity from your home and cut the size of your mortgage, then it may be worth thinking about downsizing. Have your circumstances changed since you bought the house? Do you really need all square footage you have? If you no longer make use of all the space in your home, then it may be time to think about downsizing. “Small” can be charming – it allows you to really make the most of what you have and curate a beautiful living space.
Reverse mortgage
A reverse mortgage is a different sort of mortgage, where you borrow money (either as a lump sum or as a monthly payment), against the value of the equity in your home. They are usually not repayable until either the homeowner sells the house or dies, so there’s no rush on repayment. This feature also makes them popular with older people with no dependents. It can be a great way to experience the financial benefit of selling your home, whilst still being able to enjoy living in it.
Take In A Lodger
If you have the extra space but don’t want to downsize for whatever reason, then renting out your spare room could provide a nice little income boost. You can set whatever rules you would like for your house – if you live alone and would like some company, then you may want to encourage them to use communal spaces, whereas if your privacy is important to you then you may want to keep some areas of your home just for you.
Holiday Rental
Although this may technically not make you money, it could definitely save you some. If you live in an area that’s popular for holidays, then you might want to consider either a holiday swap (where you agree with another person to exchange homes for a week or two), or using a site like AirBNB to rent out your home whilst you are on holiday, thus offsetting the cost of your accommodation against it. Just remember to check the terms of your mortgage and insurance carefully, as some lenders prohibit such short term lettings.
Obviously everyone is different and what works for one person may not be right for another. As ever, when making big monetary decisions it’s a good idea to seek the advice of a reputable independent financial consultant to ensure it’s a good fit for you and your circumstances.
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