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Many people today aspire to own a home, but with rising housing markets, and a volatile economy, home ownership is a dream that can often feel out of reach. So, if you simply can’t afford a home, what are you to do? Here are some alternatives:

  1. Room rentals

This solution is geared toward those who are already in a home but are struggling to make their mortgage payments. If you have a larger space with some extra room, you can put that space to work by renting it out. While renting out to strangers can seem daunting, this can work well if you use a good screening process. Young professionals and students traveling for work or internships often find this type of arrangement appealing because it is more affordable than renting a whole apartment. Alternatively, you can rent a room out on sites like Airbnb.

  1. Condos and cottages

Just because you cannot afford a bungalow in the suburbs doesn’t mean you can’t afford any type of property. Consider looking at smaller, less expensive homes such as condos and cottages. These types of accommodations can provide you with a great alternative to renting. Over time, they can also grow in value so they are an investment while you are saving for the home that you really want.

  1. Co-ops

Co-ops can provide a lower cost alternative to cottages and condos. In a co-op establishment, you share both ownership and responsibility for maintenance with other owners. These arrangements can work well if you have a good co-ownership agreement in place.

  1. V. Living

If you have a heart for adventure and want to be able to pick up and travel whenever the spirit moves you, you may want to consider R.V. Living. In addition to the cost of the R.V. itself, there will also be expenses for general maintenance and park fees, but this is still considerably less than the cost of owning a home.

  1. REITs

Owning stock in a Real Estate Investment Trust (REIT) won’t put a roof over your head but it will give you the benefits of owning a rental property without having the headaches and hassles that can come along with being a landlord.  REITs allow you to pool your money with other investors to purchase property that is managed by a property manager. Many of these types of investments are traded publicly and available for any investor to purchase. Income from the properties is distributed to the shareholders – so if you invest in a profitable REIT, it can help you save for a down payment on a home.

If you are searching for a way to finally get into a home of your own, or break into the real estate market, these ideas are worth considering. Before making any investments however, it is strongly recommended that you seek out the help and advice of a qualified professional who can help you assess your risk tolerance and walk you through the fine print. If you would like to discuss any of these ideas further, contact us at markandbrandon@harveykalles.com

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