Amongst the latest trends to have caught on, this one
teaches people to utilize on space at home for financial purposes
First there were just
hackers (with knives and blades), then computer hackers and then came the life
hackers. Now, we have something called house hacking which is being more and
more commonly used in various parts of the world where there could either be
living constraints or people are looking for ways to earn that extra cash.
The concept
House hacking in an integral stepping stone into the
world of real estate investing
While it was not unheard of
in the past of people letting out a spare room, it wasn’t really looked at from
a business and investment point of view. This concept may not be new but it has
only gained popularity and momentum in the recent past. If people go about this
in the correct manner, they could end up staying free of cost in their own home
only because they have turned it into a multi-unit facility to generate income.
The process
Getting started out as a house hacker is much easier
than expected and you end up becoming a real estate investor in the process
One of the simplest and
easiest ways to start out as a house hacker is to get hold of a duplex or a
triplet and turn it into a multi-unit rental facility which would also be your
principal residence. This would give you the opportunity to cover the EMI
expenses and maybe even get some left-over cash after that. Living in the same
place as your tenants will also give you the option on keeping an extra eye on
the general upkeep of the property. The
following pointers are the types and then some innovative ways of househacking.
Equity househacking
Buy a property that needs touching up and then sell at
a higher cost when the time is right
If carried out properly,
this method could literally ensure that the cost of living in this property for
whatever period of time till it is sold is absolutely free of cost. One needs
to buy a Residential Apartments in Bangalore which requires a bit of renovation and will
appreciate greatly in value once these renovations have been carried through.
The profits from the sale would effectively cover the costs of the renovations
and also the cost of living for this duration.
Cash flow house hacking
Do not wait just for the property to appreciate in
value, make money right from the start
This is another one of the
common methods used for househacking. This is when one purchases a property
with the aim of subletting the rooms or has the one spare bedroom which could
be given out to a college student or a fresher who does not want too much of
his starting salary going on accommodation.
Pets only accommodation
While most places do accept pets, imagine having a
personal animal haven of your own
While this would involve a
little bit more thematic design to ensure that this place is pet friendly, how
many people would have heard residential set ups that are meant only for people
who have pets. Just imagine the delight of people when they find out that they
can take their beloved little pooch with them on their travels. Plus having so
many pets under the same roof would always ensure fun and frolic unless one of
them bites off something they are not supposed to chew on. Given the number of
people with pets, and the shortage of proper animal shelters, occupancy levels
for this sort of a place could be high.
Community based
Similar ways and mannerisms would promote greater
cooperation and better general upkeep of the place
India is a place where
cultures and customs are still very much prevalent even in the most developed
areas of the country. Even though the average Indian is friendly and helpful,
most of them are at ease when they are in the midst of their own kind. After
all, there are a greater proportion of habits that one has in common with their
own kind. Having people from the same community promotes a greater sense of
unity and would cut out common problems which a mixed set of tenants may have.
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