Everything You Need to Know About House Hacking
Jul 05, 2019 Real Estate News
Being a popular concept in the west, house hacking is making its way to the Indian real estate. It is a unique way of investing the property that might be a bit heavy on your pocket but making money out of it cleverly.
Before we proceed, let us discuss in depth what is house hacking and how it can be of advantage to the home buyers:
In house hacking, you invest in the property that is a bit expensive or in the prime location. Then to make sure that the property is not killing your finances, you rent out a portion of the property while living in another part of the said property.
This allows the homebuyers, especially young home buyers, to buy the property in a prime location or even near the workplace which would have been otherwise unaffordable. Since the property will be in the prime location, it will fetch handsome monthly rent, which will, in turn, help in paying the monthly EMI of the property.
Benefits of house hacking:
1. As the property will be near the workplace, the homeowner will save a lot of time and money in commuting to the workplace and back home.
2. The maintenance of the house is split among the dwellers equally.
3. Being a first-time homeowner, it will give your hands-on experience of investing in real estate and making money out from it.
4. If you have to go on a vacation, then you are not leaving your house unguarded. The tenants will look after the property while you are not there.
Disadvantages of house dwelling:
1. Your home may feel like a multi-unit living space.
2. If they miss out on the rent, it could get awkward, and you may find it difficult to pay the EMI.
3. Lack of privacy is the prime concern in such settings.
4. Also, as a home buyer who is depending on rental income to help in paying the monthly EMI, the tenant moving out can be the cause of your worry.
Things to remember while choosing the house hacking:
1. When opting for house hacking, it is a good idea that one invests in the multi-unit property. A multi-storied property is a good option for the house hacking as it will ensure you have your personal space while getting the monthly rent.
2. If your budget does not allow you to have a multi-story building, then it is a better option to invest in the property that has multiple bedrooms with attached bathrooms. If there is an independent bathroom, keep them for your use.
3. Look for the property that has a large open area that can be easily converted to a bedroom or a living space.
4. When you are looking for the property for house hacking, make sure you take into factor the common areas of the house.
Before we proceed, let us discuss in depth what is house hacking and how it can be of advantage to the home buyers:
In house hacking, you invest in the property that is a bit expensive or in the prime location. Then to make sure that the property is not killing your finances, you rent out a portion of the property while living in another part of the said property.
This allows the homebuyers, especially young home buyers, to buy the property in a prime location or even near the workplace which would have been otherwise unaffordable. Since the property will be in the prime location, it will fetch handsome monthly rent, which will, in turn, help in paying the monthly EMI of the property.
Benefits of house hacking:
1. As the property will be near the workplace, the homeowner will save a lot of time and money in commuting to the workplace and back home.
2. The maintenance of the house is split among the dwellers equally.
3. Being a first-time homeowner, it will give your hands-on experience of investing in real estate and making money out from it.
4. If you have to go on a vacation, then you are not leaving your house unguarded. The tenants will look after the property while you are not there.
Disadvantages of house dwelling:
1. Your home may feel like a multi-unit living space.
2. If they miss out on the rent, it could get awkward, and you may find it difficult to pay the EMI.
3. Lack of privacy is the prime concern in such settings.
4. Also, as a home buyer who is depending on rental income to help in paying the monthly EMI, the tenant moving out can be the cause of your worry.
Things to remember while choosing the house hacking:
1. When opting for house hacking, it is a good idea that one invests in the multi-unit property. A multi-storied property is a good option for the house hacking as it will ensure you have your personal space while getting the monthly rent.
2. If your budget does not allow you to have a multi-story building, then it is a better option to invest in the property that has multiple bedrooms with attached bathrooms. If there is an independent bathroom, keep them for your use.
3. Look for the property that has a large open area that can be easily converted to a bedroom or a living space.
4. When you are looking for the property for house hacking, make sure you take into factor the common areas of the house.
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