Gaining Profit from your Real Property Most of us understand that real property is a good investment. Of all the property we own, our real property most likely is the only thing increasing in value. We understand how much we can save in the long term by paying against the principal on a mortgage, or refinancing at a lower rater and/or for a shorter time period, and we understand the tax benefit of deducting the mortgage interest. Some of us even make the January payment and property tax payment in December for early tax benefits. In tough times, though, homeowners also have discovered creative ways to put their real property to work to increase income and/or decrease expenses.
Farmhouse. Perhaps the oldest method of using real property to decrease expenses is by using it to produce food. People may raise chickens, cattle, pigs, goats, honey-bees, etc. to supply meat, dairy products, and honey. Others may plant crops and/or gardens to feed their families. Even a contemporary suburban home-owner can plant a garden in the back yard. Contemporary land owners with a bit more land have put the land to use to have blueberry farms and/or to grow organic vegetables and fruits, nuts, etc., which they then sell at farmers' markets, to farmers' market vendors, or even by subscription to others in nearby communities. Using the land to raise and/or grow food can both reduce expenses and increase income. Home Rental. Another traditional method of putting real property to work for increased income is converting all or part of it into rental property. Homeowners may have a small house separate from the main home, an upstairs apartment with direct access, or leased rooms within the house. Leasing a couple of spare bedrooms may provide half the mortgage payments, or better yet, additional monthly payments against the principal. Making your real property into private homes for rent is smart move nowadays. Specially that the holiday season is coming many tourists will be interested to rent a place to stay where they can relax and free from stress-filled city life.
Work-at-Home. Increasingly, in our computerized society, people are choosing to work from home. Working from home is no longer necessarily a "cottage-industry" situation. While some still operate cottage-industry-type businesses from home (e.g., making items to sell, such as jewelry, woodcrafts, decorative tile painting, etc.), some professionals now are opting to work from home offices. Some attorneys, website designers, lease managers, massage therapists, etc. office solely at their homes rather than buying or renting office space. Some people who are employed full-time open a home office for a side business. Countless ways exist for putting your real property to work for you. Don't overlook the possible tax benefits of having a business at your home, also. Be careful to check the zoning regulations as well.