The soaring costs of living might seem like a barrier to your dream of owning a home. According to Bankrate, many are turning to side hustles, especially younger individuals contending with student loan debt, to bolster their income and work towards homeownership. Here are two strategies not only to make homeownership more feasible in the short term but to transform it into a lucrative side hustle.
Turning a Fixer-Upper into Opportunity
Consider the prospect of purchasing a fixer-upper. These homes, slightly less appealing and often lingering on the market, present an affordable entry into homeownership. According to U.S. News, the current housing market encourages expanding options to find an affordable home:
"A fixer-upper that needs some updating and a little love can feel like a welcome alternative to move-in ready houses that go off the market before you can even take a tour."
Opting for a home that requires work offers two significant advantages. First, it may be easier to secure a home, given you're not seeking perfection. Second, it positions you in the housing market at a lower price point. Investing time and effort into improving your home not only turns it into a personalized space but also boosts its future market value. You're not just building a home; you're creating equity that could yield profits when it's time to sell.
Renting Out a Portion for Affordability
Another strategic approach is to intentionally purchase a home with the idea of renting out a portion. Zillow notes that renting out part of a home is crucial for many young homebuyers. As Manny Garcia from Zillow states:
"For those first-time buyers navigating the ‘side hustle culture,’ where a regular 9-to-5 might not quite cut it for homeownership dreams, rental income can step in to help."
Renting out part of your home serves a dual purpose. It aids in meeting monthly mortgage payments, enhancing affordability, and simultaneously transforms your property into a source of income.
Faced with today's affordability challenges, these strategies present tangible paths to homeownership, especially for younger buyers. If you're interested in exploring these options and understanding how they align with our local market, let's connect. Homeownership is within reach with the right strategies. ???