Let’s say you want to make extra money now. I know that’s a stretch. Who wants that?
So, you look at the different investment vehicles out there. Already, we’re using the word ‘investment,’ meaning you’re expected to spend money to make money. You don’t need to, actually, and I’ll get to that in a minute. These investment vehicles include stocks, mutual funds, savings accounts, gold, what have you. These are all passive assets. When you put money into them, that money sits somewhere. It may increase, it may decrease. What it mostly does is sit there, and you watch passively, hoping it increases. As soon as you touch it, it stops being an investment, it stops making money. It’s either/or.
Property used to be like that. You’d buy a home, hoping it would go up in value. In order to recoup that value, you’d have to sell. For some lucky folks who are well-to-do, they could afford a second home, for their personal use. Or, they could have an investment property, and rent that out. The rent from most investment properties does not cover the cost of the monthly house payment. So, these are long-term propositions, with a payoff far in the future, which requires selling. They are also risky, subject to the same whims as the stock market.
Ah, but what if you could live in your home AND have it make money for you? You could have your cake, and square meters, too! You wouldn’t need to sell. You wouldn’t need to invest any more than you already have. You wouldn’t have to wait, either, as the new money would arrive in your bank account this week. Literally tomorrow.
What is this magic formula? You’ve probably already guessed it. Most folks have experienced it first-hand. The new money comes from renting your space.
How much are we talking about? Thousands annually. Try our simulator to get an idea.
When thinking about renting your space, the first thing that might come to mind is Airbnb. That is an excellent way. However, Airbnb is just one platform among dozens, in the larger usage category of “short-term rentals” or STR. There are also “long-term rentals” or LTR. There’s also Storage. And outdoor amenity usage like a garden deck with bbq or swimming pool. And Activities, which can be one-time like a corporate event, or recurring like co-working space or yoga class. Your space may be rented for a multitude of uses.
What would any adviser say about your portfolio? Diversify, of course. The same goes for property. Your space can be used in many, many ways. By creating multiple revenue streams, you become less dependent on any one of those streams, and even less on one of the platforms in that stream. You can easily shift, and continue making money.
At My Property Payday, we intend to provide the guidance needed to accompany you on your shift. We’re happy to help with news, analysis, case studies, and tools for the home owner.