The rising cost of living expenses can make it feel like owning your own home is out of reach. However, there are practical steps you can take to achieve this dream. With more people seeking additional income through side hustles and the trend of renting out portions of homes on the rise, there are ways to make homeownership a reality. One strategy that could work for you is purchasing a fixer-upper. Let’s dive deeper into these ideas and see how you can make your dream of homeownership come true.
Side Hustles
It’s no secret that the cost of living is increasing, which means finding ways to make extra income is becoming more necessary. In fact, many people are now seeking additional work through side hustles to save for their dream of owning a home. By supplementing your income with a side hustle, you can save more money towards a down payment. With so many options available like freelance writing, dog-walking, or starting an online store, there is certainly something for everyone.
According to Bankrate, many people are seeking additional income through side hustles, possibly to cope with those increasing expenses and save for a home. This trend is particularly popular with younger individuals who may be dealing with student loan debt (see graph below):
Renting Out a Portion of Your Home
Another way of making the dream of owning a home a reality is by purchasing a home with the upfront intention of renting out a portion of it. This is a popular strategy for young homebuyers as it allows them to offset the cost of their mortgage payments. By renting out a portion of your home, you can create a stream of passive income while enjoying the benefits of homeownership. Additionally, with resources like Airbnb, it has never been easier to find tenants.
According to a recent press release from Zillow, renting out a part of their home is already very important for most young homebuyers (see graph below):
Purchasing a Fixer-Upper
Another savvy strategy is to consider purchasing a fixer-upper. These homes may not look like your dream home right away, but often they can be purchased at a lower price and can be turned into the home of your dreams with some work and investment. By purchasing a fixer-upper, you also open up your options in terms of location and size, as they may not be as sought-after as more move-in ready homes. With a little elbow grease and some help from professionals, you can turn that fixer-upper into a home you love.
Owning a home is a goal for many, but with the rising cost of living expenses, it can feel out of reach. However, with practical strategies like side hustles, renting out a portion of your home, and purchasing a fixer-upper, you can make your dream a reality. By supplementing your income, creating passive income streams, and investing in your dream, you can achieve homeownership in today’s tough market. Keep these strategies in mind as you navigate the home buying process and you’ll be on your way to achieving your dream.
