Is there a way for homeowners to become creative and engage in real estate investing? What is the best investment strategy for homeowners to make more money? These are important questions facing current and future homeowners as well as potential real estate buyers when thinking about the strategy for their investment and how to make the most out of it.
There is no denying that buying a real estate property is very costly for the majority of people. While few people are able to afford properties without the need for mortgages after having saved enough money, most tend to struggle on monthly basis with the mortgage payments. This is where creative strategies for real estate investment come in. As a real estate investor who is purchasing a home to live in, there are ways to utilize that investment to make extra money to pay off mortgages for example. The best investment strategy depends on the preference of the homeowner and the kind of profit he/she is looking forward to making. What is important is to look at your home not only as the place where you and your family would live but also as an asset which can bring you profit (or at the least pay for itself).
The Best Investment Strategies for Homeowners
1. Live and Rent Strategy
Perhaps this is not the best investment strategy for homeowners who already have a family that needs all the space available to them. However, it could very easily work out for young couples or single individuals as it will allow them to buy a home and start investing in real estate early in life. This strategy is an excellent way for cover part or all of the mortgage costs of an owner’s property. For example, let’s consider a couple who have purchased a 3 bedroom property and are paying a monthly mortgage fee of $1,000. The couple has two bedrooms that are completely unused and which can be used more efficiently by putting them out for rent. The rental income generated from renting out these two bedrooms can be enough to cover mortgage costs, which practically makes the property pay for itself. While privacy issues might be a concern for some people, being selective about tenants and having a good screening process will make the effort worth for the homeowners.
in specific, this approach can turn into the best investment strategy for homeowners who are living in an Airbnb hot zone. Airbnb cities that are in demand like San Francisco, Los Angeles, and New York City can generate a lot of money for owners who share their flat or house with guests. Some owners can even make enough money to cover their mortgage in addition to providing a profit in the high season of Airbnb rentals.
2. Renting Parking Spaces
Renting parking spaces can be a good investment strategy if the owner has the space for it. This could be ideal for families who don’t want to share their homes with anyone but want to make extra profit from their real estate investment. In big cities, parking spaces can provide owners with significant profit because of their scarcity and extremely high prices. There are many apps and websites which act as a platform for property owners to list their parking spaces for rent. This could be the best investment strategy if you have unused space outside your property.
3. Renting Office Spaces
Investing in office spaces could be hugely profitable for investors who want to expand their investment strategies. Investment property owners shouldn’t be limited to the housing and tenant market when they utilize the maximum potential of their investment. To have the best investment strategy, an owner must be open to new options and adapt to the needs and demands of his/her surroundings. Renting office spaces is cheaper than renting out rooms because they are used for most of the daytime and then the owner has privacy again. This is convenient for both parties because it provides owners with extra profit and gives freelancers or startups a cheap alternative to do their work. An owner can accommodate an unused space like a garage to become an office space that can fit 3-4 people. It is an alternative to the traditional methods of renting and gives the owner an extra dimension into the real estate world that can be exploited.
When thinking about the best investment strategy, one should be creative and open to new ideas and opportunities. While it is absolutely true that buying an investment property is something that many cannot afford, you don’t have to necessarily purchase a separate rental property in order to become a real estate investor. Real estate investing is a very dynamic world where supply and demand change quickly, so as an owner, you need to adapt and improve your strategies in the necessary way to make more money. Seeking opportunities and understanding the demand of the real estate market will only guide you to more profit and an easier way of life. The truth is that most homeowners are unaware of the potential that their real estate properties hold because they see real estate only as a place for them and their families to live in. However, times are changing and the faster you accommodate to these changes, the bigger your rewards will be.