Turn Your Home Into a Money-making Machine
With interest rates on the rise, many of us homeowners are eyeing our mortgage repayments with some trepidation, wondering how we’re going to make ends meet. The good news is that the answer to that question might be closer than we realise - in fact it could, quite literally, be right under our feet.
It’s not only high-end luxury properties that are in demand as film locations, says Clarke. Everything from shabby chic cottages to barbershops, to crumbling factories and car parks could have film and photographic potential. If your home fits the bill, it’s definitely worthwhile getting in touch with a location agent. Your property could bring in as much as R5 000 to R10 000 a day if they decide to represent you.
“The options for generating income from your home have increased dramatically over the last few years,” says Tony Clarke, Managing Director of the Rawson Property Group.
“It’s not just yard sales, or lodgers or selling crocheted doilies on the internet anymore - people are getting creative, and the results can be far more lucrative than you’d expect.”
One of the most profitable ventures, in the short term at any rate, is offering your home as a location for films and photo shoots.
“The South African film industry is booming, and we’re definitely on the map as a great location for international production houses of all types,” says Clarke.
“That means there are a lot of people looking for interesting places to use as sets or backdrops for their shoots. Your home, garden or views could be exactly what they’re after.”
It’s not only high-end luxury properties that are in demand as locations, either. Everything from shabby-chic cottages to barbershops, to crumbling factories and car parks could have film and photographic potential.
“The most important aspects that production companies look for tend to be light, space and a unique character, as well as enough parking to accommodate their team, of course,” says Clarke.
“If your home fits the bill, it’s definitely worthwhile getting in touch with a location agent. Your property could bring in as much as R5 000 to R10 000 a day if they decide to represent you.”
If you prefer to be more hands-on, and happen to be a whiz in the kitchen, Clarke says you might find the new trend of supper clubs a more interesting proposition. Pop-up dining concepts like supper clubs are gaining a lot of popularity, and their intimate nature makes them ideal for a home-based business idea.
“You would need a permit to run a food-service business from home, but it is a great way to earn income while meeting new people and maximising the use of your property. You could also venture into catering or home baking in a similar way,” says Clarke.
If you prefer to be more hands-on, and happen to be a whiz in the kitchen, Clarke says you might find the new trend of supper clubs a more interesting proposition. Pop-up dining concepts like supper clubs are gaining a lot of popularity, and their intimate nature makes them ideal for a home-based business idea.
Running a bed and breakfast is another method of generating income from a property, and is perfect for social homeowners who enjoy interacting with interesting guests. With websites like Airbnb, he says it’s also particularly easy to do.
Originally founded as a way to connect couch surfers with amenable hosts, Airbnb allows homeowners around the globe to advertise their spare rooms - or entire properties - to potential guests.
“With Airbnb, you can host guests whenever you want to, unlike a traditional B&B that generally stays open all year. You can rent a single room, a sleeper couch in your lounge, or your whole home or apartment, and set your own rates, picking and choosing guests through an online vetting process,” says Clarke.
“It’s all backed by Airbnb’s Host Guarantee insurance as well, which means that even if things do go wrong, you’ll be covered.”
In Cape Town, Airbnb rates range from R200 per night for a bed in a shared room, to over R70 000 per night for an entire, top-end, luxury property.
“If you have the extra space, or are planning on being away from home for a period of time, listing your property on Airbnb can bring in a considerable amount of cash,” says Clarke.
As with all new business ventures, Clarke says he recommends doing a bit of research before diving into a new project, however.
“There are plenty of home businesses that don’t require any special zoning or permits, but you need to be completely sure that yours complies with any regulations if you want to avoid future trouble with your municipality or disgruntled neighbours,” he says.
“Also check that your mortgage doesn’t have any restrictions that limit the use of your property while it is bonded.”
To find out what zoning applies to your property, or to get advice on rezoning, contact them on 021 658 7100.
“It could be the first step towards owning a very profitable home that will weather those interest rate increases with no trouble at all,” says Clarke.