Brad Cohen December 13, 2023
With the rising cost of living, achieving the dream of homeownership may seem like a daunting task. However, a growing trend suggests that individuals are exploring innovative ways to make homeownership more affordable by turning it into a side hustle. Nearly 2 out of every 5 people have a hustle to find that extra income. Especially popular among younger individuals grappling with student loan debt, this approach involves creative strategies that not only make homeownership feasible in the short term but also transform it into a lucrative venture for the future.
One strategy to break into homeownership without breaking the bank is considering a fixer-upper. These homes, often overlooked due to their less-than-ideal condition, can be a welcoming alternative for those seeking affordability. By opting for a property that requires some TLC, potential homeowners may find it easier to enter the housing market at a lower price point.
According to U.S. News, the current state of the housing market encourages expanding options, making a fixer-upper a viable choice: While a fixer-upper may need some updating and love, it provides a more affordable way to become a homeowner. The added bonus? Investing time and effort into gradually enhancing your house not only makes it a home but also increases its future market value.
This approach allows homeowners to enjoy the satisfaction of turning a house into a home while building equity that can pay off when it's time to sell.
Another savvy strategy is to purchase a home with the upfront intention of renting out a portion of it. According to a Zillow press release, this approach is particularly crucial for young homebuyers navigating the challenges of homeownership dreams alongside the "side hustle culture." Renting out a part of your home can play a vital role in making monthly mortgage payments more manageable. As Manny Garcia, Senior Population Scientist at Zillow, notes:
"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."
Not only does renting out a portion of your home contribute to affordability, but it also positions you as an investor, turning your home into a potential source of income.
However, before taking the plunge into the world of short-term rentals, it's essential to weigh the pros and cons. Converting your home into a short-term rental is a decision that demands careful consideration. The allure of additional income must be weighed against the challenges and responsibilities that come with being a landlord. If the prospect of managing a rental property seems daunting, selling your house might be a more prudent alternative.
In the face of today's affordability challenges, these innovative strategies offer more attainable paths to homeownership, especially for younger buyers. Whether you're considering a fixer-upper or contemplating the prospect of renting out a portion of your home, these approaches can provide financial flexibility and turn homeownership into a side hustle with long-term benefits. To explore these options further and see how they might align with your goals in the local market, don't hesitate to connect with us. Let's discuss how you can turn your homeownership dreams into a reality.
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