How to be RENT FREE with minimum compromise
Since London happens to be one of the most expensive cities in the world to live in, it’s no surprise that renting a small flat comes with a big price tag. Buying your first home is riddled with obstacles by banks and wage restrictions with substantial savings required to move up the property ladder. Half of our salaries goes into paying bills, mortgages or rent. Wouldn’t it be wonderful to find a way how to save or invest the money you need to pay every month instead of spending? Attention! We found a way! FYI, this comes from our own experience and not just some advice we know nothing about, these are actual things that helped us developing and growing.
- If you rent a one-bedroom apartment for £1200 as an example, it’s likely that you can afford to pay a little more for a 3-bedroom house which could be in the region of £1500-1600 pm. The idea here is to take up a floor and rent the rest of it, perhaps making some changes in layout to facilitate privacy for yourself (subject to this being allowed by the landlord). This would mean that you would have at least two bedrooms which can be let out as bedsits. This will cover at least £1000 per month, leaving you with a bill of only £500-600 if not less. Yes, there will be a time at the beginning where you are exposed to more risk as the rent increases, but if you plan and execute without hesitation then it will be short lived. Concentrate on the long-term benefits that will make your life less stressful.
- If you own a house of any sort, there are ways to get great returns similar as to number #1. The upside is that you don’t need to seek permission as you are the freeholder and owner of the property, you are completely in control and you benefit from the gradual property price increase over time. If you extended up or out, this will mean even greater return and potentially nothing to pay at all when the bills arrive, while only compromising how big of a place you need to live in.
- Rent-to-Rent is a more complex way of doing business, but for those who is prepared to put in the work, this is a great opportunity. This would involve renting a property for a long time, anywhere between 3-5 years, guaranteeing rent to the landlord while renting it out as an HMO (subject to applying for a licence). This could bring considerable amount of money if done right, which in fact will release you from paying for your living expenses
There are a lot of books related to property business for people interested in progressing in life, our recommendations would be researching Rob Moore and Mark Homer who happen to be successful entrepreneurs and property investors.