Making rental income from a secondary residence

Are you an investor and business minded? This one is for you…

Many are starting to list down goals and dreams for the upcoming year 2021. Every new beginning is truly inspiring for everyone. Have you started planning out how to reach your goals? Do you desire to have more funds or probably need a new way to generate income by making the most out of what you currently have?

Do you own a good-sized block and needing more space for the family?  How about a secondary residence right in your backyard and make money out of the land you are not utilising?

As an old proverb says “Don’t put all your eggs in one basket.” The most popular and successful way to earn additional income is real estate. It is a tradition that has been working for generations in terms of investments – bricks and mortar they say.

We list the top 5 Reasons why you should consider building a secondary residence in your backyard. Start utilising your block of land to help you achieve your goal in 2021.

1.  Passive income

When we say passive income, it means you are earning money through passive investments. Well, it is all about money because the goal is to improve your cash flow over time.

Everyone needs shelter to live in. As you may have heard from Channel 9, the rental market is booming. It is more expensive to rent in Canberra nowadays than it is to rent in Sydney. There was a high demand in 2019 and it will continuously grow in years to come when more infrastructure and more people move to the nation’s capital. It’s exciting to see the growth from the last 10 years, can you imagine the next 10?

They say money can’t buy happiness and they are right in the long term but the opportunities it can provide can bring priceless moments that could make you happy. Also, having more money means less stress in the household and planning for the future. Constant cash flow from a rental property is no question, especially when it’s using land from another property you or a family member owns. Firm and a fixed monthly income are what you can look forward to. 

Wouldn’t you like an income from your main property like The Pod’s secondary residence in the backyard?

2.  Minimal supervision 

We all get busy in different ways. We need time for family, work, leisure and of course, business and investments. It will allow you to spend more quality time with your family.

With a secondary residence as a new investment, you would not need to spend a lot of time checking on it. DA approved secondary residence means you can rent it out legally to any real estate agent. Hence, creating less pressure for you to manage two properties on one block. Your agent can take care of your tenants and check if they need help with anything. The Pod will have separate water and electricity costs as well so you will have a separate dial showing the usage of each property on the block. 

Wouldn’t you want to spend more time with your family while your block is making money?

3.  Trust is important

Yes, you can choose who you want to give the keys to your property. We highly recommend that a real estate agent do the appropriate checks and handle the tenants so it takes the pressure off of you, it’s worth the fees in our eyes.

Tip: You can have a long term tenant this way you can avoid turnovers.

4.  High potential to increase the value/equity on your current property

We invest because we want to expand possibilities in making money. We desire extra income to look after ourselves, significant other, family and friends. We all desire to become great providers because it makes us and our family happy. Financial stability makes our lives stress-free and worry-free. 

Secondary residence in your backyard will make your property become more valuable. This will likely increase your equity and you can use those funds to potentially borrow more and buy more investments or improve life situation.

You can also increase the value of your current property by painting it to have a new look. Almost every place older than 15 years needs a good coat of fresh paint in relevant colours. Upgrading kitchens and bathrooms are also a big plus.

5.  Lastly and the best part – FREEDOM!

Building something on your own will boost your self-esteem and pride. You can go overseas and list your secondary residence on Airbnb. Making way for earning money by renting it out for a weekly fee. You can have two houses on one block for a minimal cost in comparison to buying a new property. 

There are lots of options to create freedom. Having more finances means potentially more time to do other things you love than work. 

Wouldn’t you like to create opportunities in your life to travel more, take up hobbies, learn new things and spend more time with people you care about?

These all sound like a life-changing plan, do they? Why plan for retirement when you can start planning for your life today? Get going, and start your investment portfolio with a secondary residence! 

Remember that success through your supervision, decisions, abilities, ideas isn’t just an unremarkable feeling – it is fulfilling!

Please note we are not financial advisers or brokers. We are using our experience and stories from our clients to gauge this information. We recommend that you consult your accountant and financial adviser before engaging in any investment options. VRD and The Pod Canberra is not responsible for any actions you decide after reading our material. 

Good luck and happy investing!

We build secondary residences called The Pod. We are located in Canberra and we build in the surrounding regions. Any questions please contact us.

0403 843 763 | 1300 THE POD (1300 843 763)

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