After mortgage/rent payments, utility bills and the costs that come with maintaining a property, before you know it, your home has eaten into a significant part of your earnings.
So, what’s to be done? Is there a way to get your property working for you and actually make money from your home?
Potentially, yes. There are a number of short, and long-term ways to make money from your property, the most obvious being to sell the property for more than you paid for it. A rising property market will help with this of course, however it is important to buy the property for the right price and not to over-invest in it. Every property, whether a one-bedroomed apartment or a five-bedroomed mansion has a ceiling price. Knowing the maximum you are likely to get for a property on your street should help inform the amount of money you should be willing to spend on your property, in order to make a decent return.
If you do not want to sell your property, yet would still like to see it make money, check out our six ways to make money from your home…
Your driveway could offer the opportunity to raise extra cash. If your home is close to a train station, tube line or near to a venue, you could capitalise on the shortage of parking spaces in the vicinity by charging commuters and gig-goers to park on your driveway. While the income won’t see you retire early, it could be enough to offset some of your property’s costs.
Renting out a room in your house is a sure-fire way to get your home making money. If the idea of a full-time housemate is too much, consider offering a room to a local student. The advantage here is that you will only have to share your home during term time.
Is your property in a stunning location? Does it boast plenty of interesting or quirky features? If so your property could earn a living as a location for filming and photoshoots. Search the internet for location agencies and to find out what location finders are looking for in a property to be sure your property has what it takes.
While there is an initial outlay, installing solar panels on your property could save money in the long term. Not only will the panels generate energy your home can use - slashing your energy bills - but, through the Government’s Feed-in-Tariff scheme, you could be paid for any excess energy your panels produce.
If your home is in a place where people like to holiday, you could make some extra cash by letting your property out during the holiday season. This will see you need to relocate when you have guests, so bear in mind any costs associated with this to work out whether it is a financially viable option.
Working from home is no longer the stuff of dreams. Many businesses now offer flexible working to their employees and you can take this one step further by using a spare room in your home to set up your own business. By working around the day job, you could boost your earnings and your overheads are likely to be low too.
Whatever ways you get your property working for you, there are a few things to consider. Firstly, be sure you have the right insurance for what you are doing so that you are covered in all eventualities. Secondly, you may need to run your money-making schemes past your mortgage lender. Some mortgages may have clauses regarding what the property can be used for, so be sure to check from the outset.
Any additional earnings should also be declared to HMRC. The process is usually straightforward and may involve you having to complete an annual self-assessment.