Take a minute to picture your dream life, what does it involve? If the answer is anything along the lines of sipping cocktails on a deserted island, travelling the world or, well, simply not working then we’d recommend taking some time to read on. You see, escaping the mundane life of inflexible schedules and working for someone else doesn’t have to be just a dream and can actually be achieved by making some changes in your day-to-day life. Check out our suggestions below on how you can leave your nine to five lifestyle behind for good.
Invest in a rental property
If you’re looking to escape the rat race and have disposable income available, rather than letting it sit in your bank account, it’s worth looking into investing it in property. Even if you were planning on spending that money on travelling, an alternative is to invest the money into property and use the returns for travelling. While this may take a little longer to get off the starting block, in the long run these returns could be lucrative enough to continually fund your travels for a much longer period (or for the rest of your life).
That sounds great, but I don’t have six figures to invest
“That sounds great, but I don’t have six figures to invest,” you may be thinking. That’s not a problem. Contrary to popular belief, you don’t have to be a rolling in money to invest in property.
Ideally, you should have at least a 20% deposit for the property you want to purchase. Good investment properties can start from $200,000. If you have a property already, you may be able to utilise equity for your deposit. It’s important to obtain independent advice from a qualified advisor before you start, but the aim is to purchase a property that will deliver an income and cover all the costs of ownership. In other words, if you choose well, the money you’re receiving through renting your property can cover your mortgage payments as well as running costs such as maintenance and council rates.
Invest in a holiday rental business
When you think of your favourite holiday destination, is there a country or city that instantly pops into your mind? If so, it could be worth considering buying a holiday home there. If the place is a popular tourist destination, then this can be extremely lucrative – – think places like the Sunshine Coast, which used to be a holiday destination and is now a place where people live and work or towns within driving range of major cities, such as Port Macquarie or the Tweed Coast. Depending on the zoning for your property, you may have the opportunity to adjust an existing structure to add a room or rent out an extra dwelling on the same land.
Of course, there will be an initial investment, but once that’s paid off you’ll be continually making money and have your very own holiday house. If you’re considering purchasing overseas, keep in mind the legalities of building in other countries (in some countries you can only lease land, not buy it) as well as the tax implications. Make sure you do your homework if you’re interested in this route.
Rent out a room on Airbnb
If you’re not opposed to house mates and have a spare room in your house, why not rent out a room on Airbnb? You can rent it out to short term holiday makers or a long term house mate and make yourself a pretty penny. More and more, people are listing their properties on Airbnb, then stay with friends or family when their property is booked. However, it’s important to know that if you rent your property for 14 days a year or more, the earnings must be reported as income and tax is payable on the rent received.