There’s an old adage which suggests that you need to speculate to accumulate, and this is never truer than in the current economic climate.
After all, despite recent positive shifts, real wage growth has remained relatively sluggish when compared to inflation, creating a scenario where it’s arguably easier to create an additional income stream than attempt to make savings.
We’ll explore this further in the post below, while appraising the best ways through which you can make money from your home.
The Best Ways of Making Money From Your Home
Certainly, the current economic climate makes a compelling case for generating income from your home, particularly if you want to create a sustainable way of coping with the rising cost of living.
This is particularly true if you own your home, but what are the best ways of monetising your property? Here are some ideas to keep in mind:
#1. Rent Out a Spare Room
We’ll start with the most common and accessible option, as it can be leveraged by anyone with a spare room in their property.
Of course, you’ll need to be comfortable with sharing your space with a stranger if you intend to remain in the property, but you can easily leverage a spare room to generate a viable source of income over time.
You’ll need to be selective in terms of marketing your spare room, for example, while it’s also important to understand the market rate and ensure that you don’t price yourself out of contention.
If the room is large and open enough, you could even rent it out for the purpose of events and photoshoots, although this is a relatively niche endeavour that will depend largely on your location.
#2. Consider Equity Release
Equity release is an often misunderstood concept, and one that essentially refers to the process of drawing value from your owned property in the form of a large cash sum.
This is a basic description of how equity release works, and it’s ideal if you want to access a large cash sum in order to meet a number of immediate and pressing costs.
This is aimed at older home-owners, as it can only be leveraged by property owners who are over 55 and don’t find their property trapped in negative equity.
There are downsides and important considerations when thinking about equity release, of course, as this won’t offer you access to the full value of your home. So, keep this in mind before making a genuinely informed decision. You might even want to invest in a second home.
#3. Utilise AirBnB
If you spend regular amounts of your time travelling or visiting overseas locations for the purpose of work, you may also want to consider renting your home in its entirety.
This can be achieved relatively easily in the modern age, as platforms such as AirBnB enable you to market private residential properties while setting your own rate and conditions for renters to adhere to.
Once again, you’ll need to research the market before setting your rate, while it’s also important to consider the potential pitfalls of putting your home for rent on a short-term basis.
