Chapter 1 : What are ways to get cash from my home? –

How do I turn my property into income?

Chapter 1 : What are ways to get cash from my home?

A home may be one of the biggest investments you ever make. Saving up a down payment is just the first step. Find out more.

Investor Education Fund

Did you know that if you own your home, you can use it to free up some extra cash? Here are three ways:

1. Sell and then buy something cheaper, or rent

You can:

* Sell and take the cash you get back to pay off your bills. Or, invest some or all of the money so it will grow

* Move to a smaller home, or move to a place where prices are lower. For example, your bills for property taxes, heat, hydro, and repairs may go down

* Rent to lower your costs. For example, you don’t have property taxes and your landlord has to take care of most repairs for you.

2. Rent out all, part of your home, or other property

You can:

* Rent out your whole home for part of the year

* Rent out your basement or a room in your home

* Turn your home into a duplex and rent out one floor as an apartment

* Rent out a family cottage for part of the year.

With all of these options, you could invest some or all of the rent money you get. Before you rent any property, though, make sure you check with your local government. There are rules you must follow

3. Borrow back some of the savings you have in your home

If you have paid off some or all of your mortgage, you have a lot of money tied up in your home where you can’t use it. You may be able to borrow back some of that cash if you need it. Options include:

* If you’re over age 60, you may be able to get a loan that you don’t have to pay back until you sell your home. This is called a reverse mortgage.

* You can also get a bank loan, a regular mortgage or a line of credit.

Remember: Your home may be a great source of extra cash

This is not the right move for everyone, though. It’s important to think through your choices with care. You may also want to get some expert advice before you decide.

Content in this section is provided in partnership with the Investor Education Fund. The Fund is a non-profit organization that promotes financial literacy and helps consumers make better financial and investing decisions. It was established by the Ontario Securities Commission and is funded from settlements and fines from enforcement proceedings.
To find out more go to investored.ca.

Posted via web from Toronto Real Estate News | Blog

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About Tariq Sultan
Dear Readers, I am a dedicated Toronto, Ontario based real estate professional who has been successfully meeting and exceeding the needs of his clients for past several years. I am actively involved in the insurance, financing, and mortgage industry. Real estate is not only my career – it is my passion. I strive to continuously provide my clients with exceptional service to ensure they are fully satisfied when it comes to their real estate needs. For any real estate related inquires contact me today, I will be happy to assist you. Best wishes, Tariq Sultan

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