Paying for housing is usually the biggest expense you will have in your monthly budget. Once you get locked into a mortgage contract or a rental agreement you may think that your housing costs are fixed and will never change. Looking past the shackles of the dreaded contract will reveal many options to reduce your monthly housing cost or eliminate it all together. The following article lists 4 ways to get other people to pay your rent or mortgage for you, freeing up your cash for other investments to include other properties.
1. Get a Roommate
For many young people, their first experience living outside of the family home involves living with one or more friends, or roommates. The goal for most is to save enough money to buy a their own house or be able to afford a place on their own, This is an admirable goal, but when you move to your own place you are giving up the huge savings of splitting rent right at the time when you are becoming financially independent.
Instead of taking all of your hard earned savings and throwing them away into rental of your own place, save that money and use it to make some savvy investments or start a business. If you play your cards right that investment might yield enough money to buy a home with cash. The worst that could happen is that after a year or two you will have more money to move out with than you did when you first found you could afford it.
For the adults: roommates are not just for twenty-somethings. One of the quickest ways to get back on your financial feet during tough times is to leave your overpriced apartment or condo and find a roommate to share costs in a smaller place. Saving an extra $500 a month equals $6,000 a year; more than enough to offset the inconveniences of living with a stranger.
2. Rent out a Room
So you bought this nice 3 bedroom, two bath dream home 5 years ago for $300,000 and you find out today its only worth $200,000 (if you're lucky). Selling the housed in today's market is not an option but renting a part of it out to reduce your monthly expense is. Renting a spare bedroom to a college student or a responsible person looking for a room is a great way to reduce your monthly expense until you can figure out your next move. With so many people being relocated due to the foreclosure, inflation, job losses, etc. there are a lot of working middle class people who need a cheap, quality place to live. a room in a nice suburban house or town home is a win for them and a win for you as you could pocket an extra $300 to $1,000 a month depending on the cost of living in your area.
3. Buy a Duplex
If you can afford to buy property, this market is full of great deals. Homes are selling for 30 cents on the dollar and great deals are everywhere. Instead of buying a single-family home at rock bottom prices, you might consider using your money to buy a duplex.
Buying a duplex gives you and your family a unit to live in AND a separate unit to rent out. If you get a great deal the money from your rental unit can pay anywhere from half to three-quarters of your mortgage. With so many foreclosed rental properties out there now might be the perfect time to invest in property while still maintaining a place to live for your and your family.
4. Own an Apartment Building
Everybody who lies in an apartment building is paying the owner of the building rent. Why should he be the one doing nothing and collecting your hard earned paycheck. you could buy the apartment building and have people paying you rent. Of course we all understand that apartment buildings are expensive, but putting energy into finding 2 or 3 family members or investors to pool your money together could yield enough cash and credit to buy your first 4 unit building. Once you get started, manage the property well, save your money and maybe you could buy a bigger building or go off on your own.
These are just a few ideas for getting others to pay your rent or mortgage for you. The key for you is to look at your own financial situation and not be limited to the terms of your contract. You can change your living situation to suit your finances and to help you actually make money through housing instead of losing money.
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