Losing Money to Expensive Housing? Forget It! Make Money Instead in 2022

• Author: Teresa Boehm
• Posted: 2024-08-02

With a hot housing market and rental housing crisis occurring concurrently, you might think that you have no choice but to lose money to your housing situation. You possibly experienced increased rental, if applicable, and insurance payments. If you own your home, you might have experienced higher-than-average financial losses because of inflation and supply chain disruptions increasing the costs of construction materials, home appliance parts and related home repair and maintenance services.

Whatever your situation, you don't need to accept higher costs. Make money in 2022 from your housing by following these tips:

 

Shop Around and Negotiate

These days, it's more important than ever to research the costs of products and services before you make a purchase. For example, instead of buying a home appliance part through an offline repair shop or retailer, always perform an online search for the part and compare the prices listed for local and non-local businesses. You might discover that you can save more money by buying the part direct from the manufacturer or through a non-local retailer than a local one even when you take shipping into consideration.

Of course, you also need to try to prevent "reactive" buying whenever possible, which means that you need to find ways to limit expensive, last-minute emergency spending for home repairs. For example, you can save more money over time by negotiating yearly or seasonal professional services that help prevent emergencies, such as electrical, pest control, plumbing and roof inspections and maintenance.
 

Reduce The Cost of Insurance

Most people know that they can reduce insurance premiums by bundling all of their policies within one insurance agency. Yet, you have other options. For example, most insurers give you a discount if you pay the total amount due for the year rather than a monthly premium. You might even receive a discount if you recently stopped smoking or your relationship status changed from single to married.

If you own your home, some small investments that you make in it can save you money on your insurance plan as well. You can receive a discount by investing in renovations that increase its value and reduce the risk of future claims. For example, your insurer might give you a discount because you reduced the risk of a fire or flood by upgrading an old roof, plumbing or wiring or replacing flammable construction materials with less flammable ones.
 

Pick A Different Rental Property

If you currently rent your home and need more money, then it's time to consider if the rental is worth the amount you pay for it. Although a hot market actually makes it more difficult to find affordable properties, you might discover while rethinking your housing situation that your space is too large for your needs. If you now work primarily from home but still rent within close proximity of your former brick-and-mortar workplace, especially if you live in a city, then you might find a cheaper option farther away from your employer's business site.

When searching for a new rental, always make certain that the location has great infrastructure in terms of electricity, internet access and healthcare. Beyond finding a property in a low crime area free of pests, you need to know that you won't have to worry about regular power or internet outages while working from home or substandard healthcare.
 

Invest in A Vacation Starter Home

A person's starter home choice can help them make money. Many people who can't work entirely from home live in areas where they can only afford to rent an apartment or house. They're ready to invest in their first home, but they're not ready to relocate because they still need to live close to their employer. As a result, the pandemic has prompted these workers to invest in vacation homes as starter homes. They maintain their rental in a city or suburbs and then invest in a small, second home in a vacation area that they consider a nice place to someday retire. They then rent out their new home to vacationers or other workers who want to rent a temporary place in a pleasant location for six months or longer.

Given the high rents that people are currently willing to pay, this type of starter home can bring in enough money to cover the cost of upkeep, insurance and taxes and allow these buyers to save a bit every month for their nest egg and eventual retirement. Vacation properties also normally retain their high value no matter inflation or housing market fluctuations. Even if you later decide to put down roots in a different geographic area, this type of investment usually makes it possible for you to receive your asking price or a higher amount to reinvest elsewhere.
 

Things to Keep in Mind

It's not difficult to make money from your housing. You merely need to keep in mind that one of the top ways to make money is by reducing what you already spend on housing-related expenses. Additionally, if you want to invest in a starter home, you simply need to remember that you can make money from your investment while still living and working in a rental as long as you invest in a property that historically retains its value during tough times.