Jun 30, 2017

What Is House hacking and Some Innovative House hacking Ideas



Amongst the latest trends to have caught on, this one teaches people to utilize on space at home for financial purposes
image:cnbc.com

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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