3 Tips on how to Make Money from Your Vacation House
Spanish property that does not generate passive income is a liability. In this article, we will give you tips on how to turn your vacation home into a money-making asset.
In 2008, the world crisis severely impacted Spain. Millions of people started losing their jobs and could not make their mortgage payments anymore. House prices started to decline causing a lot of foreign investors to purchase Spanish property. If you happen to own a vacation home in Spain or to win one of the Cloverhut raffles, here are a 3 tips to turn your home into a passive income generating asset:
- Turn your house into an Airbnb rental.
- Create a home-based business.
- Flip it then sell it.
- How Can Cloverhut Help You?
1. Turn Your House into an Airbnb Rental
As you know, Spain is one of the most appreciated vacation locations. In 2019 alone, the country counted more than 82 million tourists. These people come to Spain to escape their everyday life and take a bit of time off with their friends and family. Clearly, these people need accommodation in order to stay in the country and you could use your house as an Airbnb rental to host them. Make sure to check out new rental rules in Spain beforehand!
Indeed, people are ready to spend a lot of their hard-earned money in order to enjoy a dozen days in the sunny south of Spain. The trend nowadays is to use the Airbnb app to list your home and make a bit of money. If your house is located in a good location, its value might increase. However, you will still encounter some costs associated with maintenance. As a result, if you do not use your house, you will end up losing money and the house will start to feel like a liability as you are not making passive income from it.
Airbnb is a great alternative that will prevent you from losing money. Actually, it can help turn your house into a money-making machine.
Airbnb rentals are currently trending because they cost less than traditional hotels. All you have to do is clean your home and remove all your personal belongings except for things that people will need to live such as plates, cutlery, towels, etc. Then, you list it on Airbnb where they will handle the advertising of your property and take a small percentage off your earnings. As people visit Spain all year-round, you will be able to makeemuch money from your house. Keep in mind that Spain is now taxing passive income generated from renting a house.
2. Flip it and Sell it
Keeping an unoccupied house is similar to dragging around deadweight. It is time-consuming and extremely costly. If making passive income with your Spanish property does not interest you, you could be better off flipping in it in order to sell it later. In 2021, a lot of people are eying Spain to retire or to purchase an Airbnb rental. There are a lot of individuals interested in buying homes that have been completely remodelled. Consequently, you could use your brand new Cloverhut prize to flip Spanish property. What you do is that you buy an old Spanish property and make some renovations to it. You can later rent out it to people for a bit of time to make extra money and then sell it to make even more. This is a very popular technique that is used by so many investors in cities that have a lot of growth potential. Salamanca for example, is a small city in Castilla y Leon close to Madrid and Valladolid. The city is well known for its university that attracts a lot of international students. These students need housing and are willing to spend 500 to 600 per month for a bedroom.
With that being said, you could buy a piece of the old Spanish property and remodel it. Afterwards, you could rent out each room separately to students for 2 to 3 years. Once you have made your passive income, you can sell the house and make additional profit.
Keep in mind that you will have the possibility to repeat the process with several houses at the same time by using leverage from the bank. Flipping and selling requires a bit more attention but could end up being more profitable than just having an Airbnb rental.3. Create a Home-based Business
As the popularity of ecommerce keeps rising, it is now more than feasible to start working from home. The covid-19 pandemic proved that businesses worldwide could grow sustainably through their online-based operations. Once again, if you happen to have a vacation home that is of no use to you, you could use it as an office to run your ecommerce. Ecommerce only requires a laptop and a Wi-Fi connection. However, a lot of internet-based business owners use an office for tax purposes. That being said, you could spend more time in your vacation home and use it as an office. Your company could pay you for using your vacation home as an office. This is a legal way of decreasing the taxable income base of your business and giving yourself some non-taxed income. With that money, you can cover the costs of your Spanish property.
How Can Cloverhut Help You?
If you do not have a vacation home or any type of accommodation to turn into passive income, Cloverhut could be the alternative to help you. Cloverhut is a company that gives people the accessibility to Spanish property through house raffles. Indeed, you could be the winner of a Spanish beach home due to a £2 raffle ticket. Once you win your Spanish beach house, you could use one of the previously mentioned tips in order to make yourself a bit of passive income. Cloverhut strives to be as transparent as possible. We want to make sure that you have the best experience possible. Get a chance of winning your next Airbnb rental by taking part in our raffle here. You can also shoot us a message through our contact form should you have any questions. Remember! With Cloverhut, you are 222 times more likely to win than at the classic lottery.
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