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How To Gain Income From Your Home After Retiring

Many people have emotional connections to their homes, whether they received it as an inheritance or still paying off mortgages. But financial experts have advised that it’s best to consider your home as an asset, especially when you’re facing retirement with no form of sustainable income stream you can rely on. A home offers several sources of income that you can take advantage of long-term to stabilise your financial situation, especially when you retire. So, is retirement on the horizon, and are you looking to raise additional finances? If yes, here are four ways to tap your home for money when you retire. 

1. Sell your home and downsize

If you’re nearing retirement, it’s safe to assume your children are all grown up and have probably moved out. If that’s the case for you, your home may feel empty and probably too large for you. You can consider selling it and downsizing it to a smaller home. This way, you’ll have some money from selling your home and have fewer expenses to deal with moving into a smaller property. Many experts recommend moving into college towns when you sell your home. That’s because you’ll mostly find affordable housing options, cultural amenities, and high-quality medical facilities ideal for retirees. 

You can also consider moving into locations considered to be excellent retirement locations, but before you move, it’s wise to seek some professional advice. For example, if you’re considering moving to South-East England, contact local property experts such west sussex and many others available online. This area has been named a number one destination for pensioners, so it’s worthwhile doing further research. 

2. Rent your home to generate income

If you have enough space in your home to accommodate someone else (and you don’t mind having a housemate), then renting your home is a great idea. A rental property will provide you with a good source of income and some potential tax benefits that may prove crucial during retirement. For example, you may be able to deduct certain expenses on your home, like home repairs and value depreciation, from your rental income.  

However, if you don’t like the idea of sharing the space with someone else, there are other renting options you can consider. For instance, you can consider short-term rent options like making your space available to people looking for short-stay accommodation. Airbnb is a great example in this case. You can also consider renting your home for other temporary uses. For example, you look up the possibility of making your home available for movie makers looking for options in your locations. And if your property has enough land space, you can consider renting it to those who live in trailers or other mobile homes. 

3. Borrow against the house

As long as you have equity in your house, backed by a paying job, you should be able to find a bank willing to lend you money. But what is equity? In real estate, equity is the difference between how much your home or property is worth against how much you owe on your mortgage. In other words, home equity is the value of your interest in your home. 

You can also benefit from reverse mortgages, designed to help cash-strapped, ageing homeowners benefit from their home equity while remaining in their homes. 

A reverse mortgage allows you to release some of the value held with your main property. With this, you can avoid the requirement for a regular borrower, as your lender can use your house as some form of security for the mortgage. With all the interest also rolled up, a reverse mortgage offers you a unique financial tool. It allows you to access your home’s equity without the pressure of paying monthly mortgages while accessing the money you need to supplement your income. 

4. Use your home as a storage facility 

Aside from renting your home, you can consider other ways to make money directly from it. For example, you can consider renting out smaller spaces in your home as safe storage solutions. You’ll be surprised how many people are looking for temporary storage facilities to store personal or business items. If you have an extra unused bedroom, garage, or even a secure garden shed, they could serve as excellent storage facilities for those who cannot afford the commercial options. Check with local government authorities to see whether this option is feasible. You may want to assess your home to determine the amount and the type of goods you can store within the space available. You should ensure that this is clearly communicated to your customers to avoid various problems that could affect the success of this business venture.