Buying a real estate property is perhaps the shrewdest and most expensive decision you're ever going to make with the average cost of a dwelling in Australia hovering at $563,100. Landlords should carefully consider their choices to ensure that they get better return value on their homes in the form of rental cash flows or by reducing outgoings. If you're looking for ways to make your property pay for itself, follow these smart strategies.
Rent out a Room
If you're thinking of ways to increase your income stream, why not rent out a room in your real estate property? Renting out an additional room is a creative way to pay your bills without worrying about them eating into your income. You can even use the money to offset the cost of your mortgage or to pay off your credit card debts. No matter what you decide, the added income from renting out a room will help you take care of certain costs faster. For example, you can claim tax deductions for associated expenses from your rental income, such as wear and tear, and interest on home loans.
Install Energy Efficient Appliances and Lights
Replacing your old appliances and lighting fixtures with modern energy efficient solutions is a smart long-term strategy to make your home pay for itself in the form of reduced energy bills. For example, good quality LED lights can reduce energy consumption by up to 50%, making them a smart and energy efficient lighting choice. Good insulation also helps to lower energy bills, so consider installing curtains or blinds on windows to prevent heat from escaping out during cold months. Similarly, shading prevents heat from entering the house in summer to reduce air conditioning bills.
Grow Your Own Vegetables and Fruits
Growing your own fruits and vegetables in your backyard is perhaps the smartest way to make your real estate property pay for itself. You're likely to save hundreds of dollars every month by simply growing the items you use the most at home for cooking. With a little business ingenuity, you may also find a way to sell your locally grown produce to cafes and restaurants or even at a fresh food market. Citrus trees, tomato plants, leafy greens, carrots, green beans and many herbs are easy to care for and make useful additions to your garden.
Living in your own real estate property can be an expensive proposition. Luckily, these tips are designed to take the cash burden off your shoulders by enhancing return value from your home.