Make Money from Your House — Live for Free
How to make money from your house, earning £7,500 tax free — and live for free. It’s so easy, anyone can do it.
Have you ever considered renting out your rooms or living with a friend? Let us know your thoughts. Leave a Comment below.
By George Choy & Sarah Choy | 24 January 2020
How to make money from your house and live for free
Hi I’m George Choy and I’m Sarah Choy and welcome to this week.
I wanted to talk to you about how you can live for free.
So one of the things you can do is use your home. So your home is not an income-producing asset unless you use it.
So what you can do…is let’s say you have two spare rooms. Maybe you know, maybe you had a four-bedroom house and you had kids living there, and they’ve moved out, for example. And now you’ve got two spare rooms that you perhaps don’t use at all. Or you have filled it with junk. All your junk.
So what we can do instead is you could you could rent out those two rooms two lodgers, and this could enable you to basically live for free.
So you know, it should you know, more than cover your mortgage cover all your utility bills. And we know somebody Nikki – and you know it pays for a cleaner as well, and it basically cost her nothing. So she lives in her house for nothing.
And she has a repayment mortgage as well, so effectively they’re paying for her house. Yes. Officially awesome! They’re buying her house. So you can do that too. It’s something anybody can do.
And which website should you advertise these rooms on on Sarah? Well she used spareroom.co.uk
I think it’s one of the biggest ones. A lot of people who are looking to rent rooms look on there and she found that quite good. Yeah, so have a look on there.
Search for your kind of postcode area, your town. See how much people are offering. See what their houses look like. What the rooms look like. Yeah. I’m sure you can make your room look much better.
And the other thing is you can earn tax-free income. So not only that. There’s a big tax break. There is £7,500 tax-free, from using your home like that. So that’s on top of your tax-free allowance that you already get. Yeah. So it’s a really awesome scheme.
I mean one thing that can be done, obviously if you’ve got those rooms, great. But if you’re looking to buy a house yourself, or a flat, buy one with an extra room because they can basically pay your mortgage for you. I mean it’s kind of it’s not as far as an HMO, it’s just having people live in your own house. But it is an awesome way of living for free.
Yeah, and certainly if you’re one of these people that doesn’t spend that much time at home. Perhaps you’re traveling on business all the time – so you have somebody there in your house to kind of look after as well when you’re not there.
Yeah, so that was one great tip for you. So what else have we been up to this week?
Well, we released a free chapter from our book – Retire Now. It even shows you the whole RETIRE NOW model and summary. So it’s really good.
I’d suggest you send it to your friends – people that perhaps are on the fence about whether they should get into property, or whether they want to retire young instead of waiting until it’s 65, or 67, or never.
So, send it to them and hopefully that will get them thinking.
It will give you a taste, just so you know what you’re buying.
Yeah. So, we’ll put a link below, so you can have a look. Yeah.
What have we been up to this week?
One of our properties – the tenant moved out, they do that, you know people move on with their lives. She’d actually been there about 13 years, so it was a really long time that we’d had a tenant in there. And the agent let me know that it needed a little bit of TLC,
which is fine. So I went down and here is video of me.
Hi I’m in the car. I’ve driven down to Folkestone. Now you don’t seem too many videos of us actually at our properties, because we’re very hands-off. We use agents to do pretty much everything.
But we’ve had a tenant move out and the agents informed me it needs a little bit of work doing to it before we can we re-let it.
So, I’ve popped down today. I’m gonna meet the agent and work out, kind of a schedule of works, as to what level of work we want to do, prior to putting it back on the market again.
Hopefully I’ll do a little bit of filming inside, so I can show you what condition it’s in and I’ll let you know what we’re going to do.
Window to be replaced – uPVC white. Just strip back and decorate. Stripping back. Re-plastering where necessary. Re-painting white. New carpet. New light fitting – actually that looks really nasty.
General making good. And we’ll let you know how that goes. I’m gonna be popping down
probably partway through the job. And definitely the end the job, to make sure they’ve done a good job. Because obviously we’re paying for this builder to do it up for us.
Fortunately it’s only about 45 minute drive from us. That’s not too bad to get to. So we’ll keep you up to date with that one and let you know when we’ve got a new Tenant in.
Just so you know. How much work is it going to be for you to manage this refurbishment?
Well not a lot. I mean the agents actually pretty much managing it for me. He set the
builder up. He’s also set up the chap to clean out the furniture that’s been left and also he’s arranging the carpets and the cleaning at the end of it. So he’s doing all of that for us, just within our management contract.
So all I’m doing really is just checking that they’re actually doing the job, and checking at the end to make sure it has been done.
Because obviously I don’t wanna be paying them, kind of a refurb bill without checking that it’s actually been carried out. So not a lot, is the answer.
And it gives you the chance to snag at the end.
Exactly. You know if they haven’t done it appropriately, you know. We can just make sure that I’m not paying the bill without getting the job done. It makes it all nice for new tenants.
They’re marketing it at the moment, so you know they’ll be taking some people round, kind of in it’s not awesome state, with the hope that obviously they’ll get somebody in as soon as they’re finished.
So fingers-crossed. and very last, but not least. We’ve got an old property which we’re coming up to the end of the two-year tie-in for the mortgage.
Because quite often when you’re doing a Buy-To-Let mortgage you have a two-year fix, or a five-year fix, or you can get variable one but they’re less popular. And so two years ago, or just under that – we took out a two year fixed rate and I’ve just had a letter from the mortgage company saying “hey you’re coming into your fix rate.”
So it’s going to go from 1.75% I think up to 4.99%, which we don’t want to be playing. So I’ve been having a little chat with Paul Davies, the mortgage broker. I did one a few months ago actually and I remortgaged onto the same company.
There’s reasons to do that. Partly it’s a little bit less hassle. You don’t have to pay so many fees, because obviously if you’re remortgaging with the same company they’re not having to revalue it, and not have to come out again.
So it’s cheaper if the rates are good, obviously. And I did that a few months ago with one company, but this one, they won’t actually talk to me. They only will talk to a broker. So getting Paul involved and he’s gonna do it hopefully for us, but we also need to compare what the current mortgage company are offering me, with what the rest of market will.
Because obviously they’re not quite so incentivised to give me a good rate. Because they obviously know that the rates and the fees aren’t gonna be so high. So I’m gonna get him to have a look at what I’m being offered by them, what I could get elsewhere, and obviously weigh the benefits and the cons against that.
So again I’ll let you know. But that’s gonna be happening in the next month or so,
well. So there’s a bit going on. Yeah.
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