How can You get Money Back from your Home?

If you’ve made the investment in a home of your own, then you might rightly wonder how you might recoup a little bit of the investment. You would have paid stamp duty, conveyancing solicitors fees, survey costs and much more. There are several practicable ways to make money from your property, and some of them might be appropriate to your circumstances.

Renting out your home

Lots of people need a place to live. You can allow one or two of them to live in your home in exchange for a monthly sum. This works wonderfully if you have another place to live, or if you’re frequently out of the country. You might even buy a new property with the expressed intent of renting it. You might take out a new mortgage in order to do so. Provided that the monthly repayments are less than your tenant pays in rent, you’ll make a profit with minimal effort.

Releasing equity

If you’re over fifty-five, you might look into an equity-release mortgage. This will effectively give you a little more cash to spend. You don’t even need to have entirely paid off your mortgage, either. You can either collect the cash in a single lump sum, or you can draw down smaller quantities over time.

Downsizing

Downsizing is the practice of selling a larger house in order to move into a smaller, cheaper one, pocketing the difference in the process. If your children have moved out, and your house is largely unused, then this is a sensible move. In some case, it might mean that you have hundreds of thousands of pounds extra to spend as you see fit. 

Ideally, you’ll want to downsize as early as possible. Don’t wait too long, or you’ll end up too old to really enjoy the money you’re collecting. 

Renovating to sell

You can invest a little bit in your home in order to bolster its value prior to a sale. Extending the rear of your property, adding utility spaces and conservatories, can make an outsized difference to the amount you’re able to recoup on the open market. Just make sure that you do your research before you make the investment, and ensure that the improvements you’re making are really cost-effective.

Renting out space

If you’re not able to move out of your property entirely, then you might modify it so that it’s suitable for rental to a single renter. This tends to work well in city town houses, where space tends to come at a premium. 

If you’re not willing to rent out the space inside your home, then you might still monetise the exterior of your property. If you’ve got a large enough drive, for example, then you might mark out a parking space and rent it to the highest bidder.

Read Also: Selling Your Home: How to Make an Amazing First Impression Online