A Guide to Turning Your Property Purchase Into a Side Hustle
Feeling the pinch of soaring costs in almost every aspect of life? Is the dream of owning your home slipping away due to the financial strain? According to Bankrate, many individuals are exploring side hustles as a means to generate additional income, potentially to counter escalating expenses and save for that elusive home. This trend is particularly notable among younger demographics grappling with student loan debt.
Consider two strategies not only to make homeownership more accessible in the short term but also to transform it into a profitable side hustle with long-term rewards.
1. Transforming Fixer-Uppers into Opportunities
A smart move to break into homeownership is contemplating the purchase of a fixer-upper. These homes, slightly less attractive and often lingering longer on the market, can offer a viable solution. As highlighted in a recent U.S. News article:
Opting for a home in need of renovation presents two significant advantages. Firstly, you might find it easier to secure a home when perfection isn't the top priority. Secondly, it could be your gateway into homeownership at a more affordable price point. This strategy not only offers a budget-friendly entry into homeownership but also holds the potential for future profits.
While the initial investment may demand some sweat equity, dedicating time and effort to gradually enhance your house not only transforms it into a home but also enhances its future market value. So, beyond the gratification of turning a house into a home, you're simultaneously building equity that can be unlocked upon future sale.
2. Renting Out a Segment of Your Home for Affordability
Another shrewd strategy involves intentionally purchasing a home with the plan to rent out a portion of it. As per a recent press release from Zillow, this tactic is already gaining traction, particularly among young homebuyers.
This strategic move serves a dual purpose, as highlighted by Manny Garcia, Senior Population Scientist at Zillow:
Essentially, renting out part of your home assists in covering monthly mortgage payments. By embracing this approach, you not only enhance affordability but also position yourself as an investor, turning your home into a lucrative income source.
Amid today's affordability challenges, both these strategies provide realistic avenues to homeownership, especially for younger buyers. If you're intrigued by these options and wish to explore how they align with our local market, let's connect and delve into the possibilities.
Call Teresa Ryan today, at 630-276-7575 for expert advice and guidance when you buy your first home in the Chicago suburbs!