Buying your own home is a costly exercise. Luckily for us the, and with a little help from our dear friend the Internet, we can make some decent money through rental properties. Here are a few ways you can make a little extra money to put towards your bond:
- Wanted: Roommate
Renting out a room in your house or flat for an extra slice of income is the easiest way to cover a portion of your bond. If you’re relocating to a new area and aren’t sure of the cost of living, being able to supplement your home loan payments with extra income is always a good idea. For example if you’re buying a 3 bedroom flat for R1.5million, renting out 2 rooms for R5000 each will only leave you paying the remaining R5000 of a R15000 a month bond – probably the same amount you would be paying in rent each month if you were to have not bought in the first place.
- Rent it all!
There are many people who buy property as an investment, or with the view to live there themselves in a few years time. This might be because they are stuck in a long term lease themselves or that their current lease is too good to let go. By renting out your entire house or apartment you can control the amount you earn, ensuring it covers most of your bond.
While it may seem counter-intuitive to be paying rent while paying off a bond, there are cases where this is in fact a smart financial situation. Perhaps you are living in an apartment with your partner while renting out your larger home. The property rental covers your bond, while you pay a lower rent because you are sharing with your partner. In the long run you will be gaining a property while potentially saving yourself money each month.
- Happy Holidays!
A popular option is renting out your home during the busy festive season. If you plan on going away yourself, you could make some serious extra cash by renting your home out for a few weeks. Luckily there are several ways of doing this – the easiest being through a holiday rental company. They ensure the tenants are properly vetted and that the house is up to standard, for a small fee of course. While this is a chance to cover some of your holiday costs, there are risks involved. You can never be 100% sure that your tenants will treat your home with the same respect you would. Ensure they pay a deposit at the start to cover their booking, as well as any damage that may occur.
Another option for semi-holiday rental is a service like AirBnB. AirBnB allows all kinds of home owners to rent a room or the entire property out for short term holiday rentals. The platform easily connects you with your potential market and allows you to assess those in the same area as you. However, you do need to comply by their rules and regulations so read the fine print!
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