Real Estate As Both a Residence and an Investment
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Posted On :
Apr-27-2010
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Article Word Count :
534
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This article encourages buyers of residential real estate to make their purchase not only a home but also a source of income. Examples and considerations regarding this are given.
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Most buyers of residential real estate are primarily looking for a home to live in and only consider it an investment in terms of value appreciation, namely the worth of the home increasing. This aspect has become too painfully clear as not being dependable or true at all. However, there is still a way to make a home also an investment totally apart from price appreciation. That is where the home can produce income for the owner as well as provide a residence.
One of the most common ways this is accomplished is by buying a multiple family property where the owner lives in one of the homes/units and rents out the other(s). This can be a two to four family house or a property that has a separate living unit, such as a "mother-daughter" type of arrangement. This also can be done sometimes by converting a garage and/or basement into an apartment to rent out.
Any of these situations require the owner to be a landlord and all that comes with that role. This includes property and tenant management, legal issues of liability and responsibility and making sure you are in compliance with all pertinent zoning and related laws and regulations. However, especially in areas that have higher rents, the income realized to the owner can be well worth the hassles and time.
Another way to realize income from residential real estate is still being a landlord, but on a temporary basis. If your home is in a high demand vacation area, you can rent out your home on a seasonal basis while you go away on vacation. This could actually pay for your whole vacation and more.
A less familiar way to make income from your home, but growing in popularity, is to operate an income producing business from your home. This does not mean having to open a store in your home, which would be against most zoning regulations. Instead, as an example, you can run a legally allowed professional practice from part of your home. Thus, if this fits your situation, when looking for a home you should make this part of your decision process if the particular home makes this possible. This option is not just for doctors or lawyers, but also for music teachers, accountants and even day care providers. You make money not only on your business revenue, but also on the saved rent you would have had to pay elsewhere.
Another way to have your real estate can produce an income for you is applicable to people who have homes with significant or special property characteristics. If you have agricultural land, you can grow and sell various food produce. In certain locations you can board pets or even breed and sell dogs. If you have property with frontage on a river or lake, you can rent our dock space to boaters.
Thus, when selecting a home to buy, you should always try to see if the particular real estate has the ability to make you income as well as provide a residence and should be part of the decision making process in selecting an actual home to buy.
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Article Source :
http://www.articleseen.com/Article_Real Estate As Both a Residence and an Investment_17293.aspx
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Author Resource :
To find out more about real estate please visit Charlotte real estate and Charlotte loan modification.
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Keywords :
real estate, residential real estate, income, business,
Category :
Finance
:
Real Estate
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