You might be one of the millions of people who live in this expensive real estate market and feel that affording a home is just out of reach. You want to be that homeowner who has acknowledged the reality that means narrowing down on housing budget.
In conjunction with the increase in wage for some of the country’s expensive cities, housing prices have simply soared high overreaching the skies.
This is not an issue for those who stand on the top of the pay-scale such as people with executive leadership or top salesperson.
But, this is a major issue to the average people who try to make their ends meet to provide a good living for their families.
The creative homeowners have adapted this assertion and are searching for ways to own a home without causing a hole in their pockets.
So, what is housing hacking?
To generate the income that is used to offset the cost of your mortgage along with the other expenses that are associated with owning a home, house hacking is a strategy that involves renting out simple portions of your primary residence. When this is applied correctly, it allows people to live for free in areas that are expensive. It also makes way for house owners that generates a positive income.
The following ways will help you save money through house hacking:
- When you opt to rent portions of your property it lowers your monthly housing allowance through this.
- It lowers your taxable income base when extra tax write-offs are acquired.
- You can save on gas decreasing the cost of your transportation.
- The unproductive time that is spent waiting in the traffic is also decreased.
- It possibly removes your car payment, insurance, and cost of maintenance,
- Marking in transition into the world of real estate investing and learning to become a landlord.
The following are the features to consider while analyzing a property as a potential opportunity for House Hack:
Multiple Family properties
It is welcoming for anything that is two units or more as this is better than anything less. A triplex is better accommodation than a duplex and a fourplex is better accommodation than a triplex. You need to set up a search for multiple family homes and then analyze them to end up with a one that will give you the lowest housing expense.
For homeowners who are renting out, they need to ensure that their home is cleaner for this they can take help from waste removalists of rubbish removal sydney.
The ultimate goal of house hacking is to lessen your payment as required and not to buy the house that is prettiest of all.
A multi-family home is the best designed for house hacks so we make a start here. While analyzing them you need to keep in mind of the neighborhood and where it is located.
In some areas, multifamily properties are only located in specific neighborhoods that are “zoned” for multi-family housing.
This means there is likely to be a higher concentration of tenants living in the space which is usually considered less desirable for those looking to invest there.
You’re better off buying multi-family properties in neighborhoods where the multi’s are mixed in with the single-family properties.
This diversity of style encourages less investor to flood the area with tenants and usually improves pride of ownership, and with it, rising home values.
Speak to a local real estate professional or property management company to learn more about zoning laws in the areas you’re interested in.
Sometimes you can strike gold when you find a property in an area zoned for single-family homes that has a finished basement that’s been converted into separate living areas.
Many times, homeowners finish their basements and include kitchenettes, full bathrooms, and multiple bedrooms. If this portion of the home has a separate entrance, that’s even better.
Properties like this allow the homeowner to live in the basement and rent the main space out to a family. This often allows them to live for free while simultaneously building equity and paying down their mortgage.
If the homeowner has a family, they can rent the finished basement out to others and collect easy rent money while not having to share their living space. Finished basements are one of the top things to look for in your search.
Multiple Bedroom Houses
If you can’t find any multi-family properties (or properties that have been modified to function as such), you’re next best bet is to find a single family home with as many bedrooms as possible.
Since the bedrooms are what you’ll be renting out, it’s important to keep in mind a home with more square footage but fewer bedrooms aren’t necessarily better.