When working to avoid foreclosure on a home, many people immediately turn to sources of extra money like friends and family and even second and third jobs to try and make their payments. It is very important not to fall behind on payments as it is the beginning of a slippery slope to losing your home and it can quickly see you sliding straight to the bottom. What many people fail to do is to get creative about ways that the property itself can work for you and make money—even without selling it. Try some of these top tips to get positive cash flow out of your property and avoid foreclosure by putting your property to work for you.
- Rent the Whole Home. Buying a home is 45% cheaper than renting. Remember that buying a home is expensive and many people out there are in a position where they cannot afford an initial down payment and must rent. Putting your home up for rent is a great way to make money from the property in the short term while you get time to pull together your finances. This option is best if you have a friend or family member willing to help you out by letting you live with them for the 6 month to 1 year length of your new tenants’ lease. Talk to your bank about refinancing to get your monthly payments equal to standard rents in the area for a home like yours. You may find that you are in a position to pay a bit more off the mortgage each month or even use the extra income for other outstanding debts.
- Rent Out Part of the Home. If you are not in a position to leave your home, try renting out an extra room to boarders. Think about the local environment where you live and see if there is a good target audience to live with someone like you. If you are young and single or in an unmarried couple, renting to young professionals like yourself might be a good option and is not likely to be a terrible long-term commitment. If you have a family, the situation can be a bit more complicated but take advantage of nearby assets like living near a university. Interstate and overseas students are wonderful tenants willing to pay a bit more for a comfortable family lifestyle and are often backed financially by family back at home. Make the most of features like finished basements or separate entrances to increase the amount you can charge.
- Capitalize on Parking. Do you live near a train station or in an area where many people commute? In certain cities and suburbs, renting a parking space can be a great extra source of income that is more secure and more affordable to commuters than paying for expensive private lots or parking tickets. Garage space can also be rented to store items like vehicles that people are temporarily unable to keep at their own residence due to a lack of space.
If you’re in danger of losing your home, it is important to consider easy to execute solutions like those above to begin earning extra income almost immediately. Renting your home for half to one year can help you get back on your feet and gain you a lifetime of enjoyment in your property. For more information on renting, consult with a real estate professional as soon as possible and avoid foreclosure.
Article by Sharon Freeman from http://taylors.com.au/, one of the leading real estate companies in Sydney. Sharon is a freelance writer from Australia who loves writing about real estate and investment-related topics. Head over to the website for more information about renting and selling houses.