If you’re on the hook for a property whose value is in the hundreds of thousands, you want to maximize that investment as much as possible. Now it’s certainly feasible for you to sell your mortgage and see some profit before you’ve entirely paid off the property. But you’re not going to make as much as if you owned it outright.
Still, sometimes neighborhoods change in a way that devalues property such that paying off the mortgage will lose you money because of your property’s value declination. You need to find some friends in the real estate industry to advise you beyond traditional agency policy in order to get the best data here.
With this in mind, it’s easy to see why paying off your property as quickly as possible is advisable: you’ve got more leverage that way. You have a greater quotient of control.
That said, if you have lost property value, or if you’d like to increase the value inhering to your home now, there are a few ways you can do that cost-effectively. One way is to maximize the property itself. Cellphones are now almost as integral to daily life as clothing. They need service. This requires installing towers.
Surprising Possibilities In Leasing
There are different leases you can use, such as cell tower lease. The average yearly cellphone tower lease rate is $45,000+. Now, that’s not ironclad. Sometimes the lease rate will be more, sometimes less—it all depends on your property. The lowest you’ll get will be around $100 a year, the highest at around $150,000.
Still, if you lease out your property to such organizations, you can reap a sum the size of a salary, allowing you to offset or even pay off a mortgage. And it’s not the only way you can lease, either. Provided you’re legally able to do so, you can rent out your property to tenants—but you must be careful that they don’t in turn rent out what you’re renting them. This is illegal in many places, and only at your authorization otherwise.
Upgrading Your Property
Another fine strategy is instituting property upgrades which are known to expand value. There are a number of ways to go about doing this, often they include interior and exterior upgrades—a really popular trend today involves instituting sustainable energy solutions.
However you go about it, you want to upgrade your property as cost-effectively as possible. Redo the bathrooms and the kitchen, provided you can get it done for less than the increased value. I.E., if you spend $5k on a remodel, you should see at least $8k in property value increase—but you want to see $10k or more for a $5k investment.
Sustainable energy solutions were mentioned earlier: did you know that a 3.1 kWh solar energy system can bring your property between $10k and $20k in value? That is in addition to potential tax-breaks and utility savings through reduced (or eliminated) electricity costs. Furthermore, if you install it yourself and shop carefully, it’s feasible to acquire, ship, and set up such a system for somewhere in the neighborhood of $5k.
$100k+ Of Potential Value
If you sublet the basement for $1,000 a month, install a solar energy system, upgrade interior fixtures and spaces, lease the grounds to a cellphone agency, and generally repair everything on the premises, it’s not without the bounds of possibility for you to spend less than $20k and see value increase of $100k or more for an $80k+ profit.
Keep your nose to the grindstone, as the saying goes, and you’ll be able to maximize that which you own in a way whose effectiveness is written in dollar signs.