If you have worked hard enough to build your property portfolio or buy your first home, the last thing you want to see is your investment vanishing. However, life sometimes comes up with unexpected situations, and you might need to make more money or need cash immediately.
The good news is that the property you bought can get you out of financial trouble in more than one way. You can use your existing assets to invest in new ones, pay off debt, or reduce your loan repayments. Find out more below.
Sell It and Downsize
In case your money situation is not likely to improve in the next 12 months, it might be time to think about selling. If your current property is too big, costs too much to maintain, or is not at the right place for your work, you should start thinking about downsizing and using the money you have left over to pay off your credit, or reinvest. You can find companies that will take care of the process fast, so you can get your cash in weeks. Check out needtosellmyhousefast.com and find out how you can get your home on the market in the shortest period of time.
Rent Out A Part of It
In case you don’t want to move, you might want to make use of the extra space you have. Rent a room out to students or single professionals. You might even turn your garage into a self contained office, and rent it out to local businesses. In case parking space is scarce in your neighborhood, you might even rent out your garage or yard, in case you are not using them. An extra few hundred dollars a month can go a long way when you are trying to solve your financial troubles and pay off bills.
Parking Space Share
In case you bought a parking space in your neighborhood or close to work, you can offer it to people for the hours you don’t use it. Living in the city has many disadvantages and plenty of benefits. If you know for sure that there are many people struggling to safely park their car close to work or home, you can advertise the parking space share deal in local newspapers and online social media groups.
Sometimes, you will need money to make money. You could release some equity from your home to reinvest it into renovation that can increase its value. Alternatively, you might pay off your debt or settle outstanding finance. Provided that you have money left over, you could also get a second, buy-to-let property that will generate you a residual income for many years to come.
Use It as a Loan Security
Those embarking on a journey of debt consolidation should focus on reducing their interest rates and monthly bills. In case you have a high interest credit card or loan outstanding that you are struggling to pay off, you could get a secured consolidation loan and use your property as a security. This method, however, is not without dangers. If you don’t make the payments on time, you might end up losing the home you worked so hard for.
Use It for Your Business
When your budget is tight, you might consider giving up your office in the city and turning your spare room into a great workspace. This will help you save money in your business, and allow you to avoid morning and night commute. If you create a home office, you can also get a tax rebate on the expenses, provided that you get a professional accountant who will help you manage your tax accounts.
Advertise On It
In case you don’t want a change, you could use your home as an advertising board for companies. Living on a busy road can give you the competitive edge to offer the space on your front, your balcony, or in your front yard to local companies to advertise. You can get paid a flat fee each month, without doing anything. Approach companies that are in your area and could benefit from extra signage and stop signs.
We all face financial difficulties from time to time. If you would like to make sure that you are dealing with the issue efficiently, you might need to use your existing assets. Your property can help you reduce the monthly payments on your loans, earn an extra passive income, or save on renting an office or commuting.