Renting out your house for income
When you want to invest some money that you don’t need to pay your bills, the first thing you might think of is heading to the stock market to try your luck. However, investing in stocks is no guarantee for fortune hunters that they will actually make money with their investments. Stock values fluctuate constantly, making it hard to do any predictions about the benefit. If you want to be more sure that your efforts pay off, it is wiser to invest in real estate.
The value of real estate, if you invest wisely, usually only grows. Investing wisely means buying property in neighbourhoods or cities that are in demand. You could go and live there yourself, but it is even better if you have the opportunity to buy more properties and rent them out.
Of course, buying houses or apartments is a big investment, but the rent that the residents pay you each month, is easy earned revenue. However, you do have to keep in mind that renting out houses also means that you are responsible for the maintenance of the place. If the sink in the bathroom is leaking, you have to make sure it gets fixed. The same applies to the maintenance of the exterior, like painting the window-frames and door-frames every now and then.
The time when your investment is really starting to pay off, is when you get to sell the property. The best time to do this is when the prices of houses in that particular neighbourhood or city have risen, due to increased demand or inflation. The profit will be a lot higher than when you would have left the money in a savings account at the bank.