Yahoo Finance 5 Simple ways to Turn your Home into a Cash Cow
Make your house earn its keep with these simple ways to make money from home
When you consider ways to increase your income, the first thought is usually a second job or finding an employer who will pay you more.
But have you thought of putting your home to work instead? If you've got empty rooms filled with junk, why not rent the space and get your home working for you?
Here are some easy ways to turn your home into a moneymaker:
1. Sell your junk
Have a garage sale and sell all that stuff you have been hoarding in the spare room or garage. Alternatively sell it at a local market or put it on eBay. This will give you some extra cash to spend on adding to your mortgage payments or to put towards renovating your home or room for rent.
Related: How to sell stuff on eBay, successfully
2. Rent a room
Now that you’ve given your spare room a spring clean, you can rent it out. Rental income is included into your assessable income, so make sure you calculate whether you will receive enough rent to cover your tax needs. Use websites like Air B&B to advertise your spare room to let.
3. Rent your home
Have you always wanted to go on a trip around Australia or overseas for several months to a year? Well why not do it and rent your home whilst you are away. It’s a great way of funding your lavish travel habits.
Related: Best ways to start saving for a summer holiday, today
4. Start up a home office
Are you able to work from home in your job? Maybe you have a business or always wanted one. You can use your spare room to set up a home office or business. You will be able to claim tax deductions for the cost of using the room’s utilities, such as gas, electricity, business phone, internet and depreciation of computers, printers and furnishings, as well as a portion of your rent, mortgage, insurance and rates. For more details see https://www.ato.gov.au/General/Home-based-work/
5. Rent out your garage space
If you live close to the city or a public transport hub, you might consider letting someone else use your garage space during the week for some spare cash. Alternatively someone might want to use the lock up garage as external storage space if you aren't using it. Ask your friends and neighbours if they'd be interested in swapping the space for a weekly wage.
Related: 20 Tax deductions you can make today
If you rent out all or part of your home then the rent you receive is regarded as taxable income. "You will be entitled to claim tax deductions for a portion of the associated costs including part of the interest on your home loan." Check the ATO for Guidance. https://www.ato.gov.au/General/Property/Your-home/Renting-out-part-or-all-of-your-home/
Note: Renting to a relative is a domestic arrangement and not classed as part of your assessable income and you can’t claim deductions such as electricity, gas, water etc.
If you decide to rent out a room, ensure you follow all requirements such as modifying the room with locks, adequate furnishings and ensure you cover any safety regulations.
