4 Reasons Why You Should Consider Your House as an Investment


Buying a house per se does not always mean having a great investment. Instead, the worth of owning a house depends on the quality of the purchased home, which is why owning a well-built home is a great investment.

On the other hand, you may hire new home builders to build your own home instead of purchasing a pre-built one. This will ensure that you have full control over the quality of your house and the materials used.

A great investment means basically getting more from what you paid for. But how can a well-built home be considered a great investment? Here are some of the reasons why this is the case for some property owners:


1. Earn passive income by renting out your house

You could easily rent out any spare rooms in your house to people needing the space. This is a win-win situation for the tenant and the homeowner. Moreover, you could just allocate certain sections of your home like the basement, or the attic for rental service. You may also offer part of your house for storage purposes.

Having a residential home, whilst making it available for tenants, technically makes you a landlord.

See Mr. Bean’s rented space? The landlady granny there seems to have maximized her property’s earning potential by allocating certain sections of her house for tenants. By applying the same, you can just sit back and relax with your pet while sipping your afternoon tea as your passive income comes in the form of monthly rental fees.

2.  Use your house as a loan collateral

Life emergencies such as sudden medical expenses can often be financially draining. If one is simply renting, bills could pile up to the point of turning into distressing financial conundrums. This is where owning a well-built home can give you much-needed financial leverage.

A real estate property provides instant access to collateral loans. This is especially applicable during emergencies. For instance, you or a family member may be in an unexpected situation wherein your health insurance would not cover all the medical bills. You may, then, decide to mortgage your house after trying other possible alternatives.

Once all is well or back to normal, you can then work on finishing mortgage repayments.

3. Utilize your house for business purposes

More than renting out your house to other people, it can also serve as your place of work. You can convert it into an office headquarters for your start-up enterprise.

You may also or convert your garage into a warehouse or workshop. You probably know the story of how the Apple corporation started, right? On the other hand, you could advertise it for lease. Some homeowners have also successfully transformed their sprawling homes into pensions or guest houses.

So, if your house can easily be converted to an office-like environment or some other business enterprise site, you can benefit from having a relatively low-cost transition.

4. Save on maintenance

Owning a property requires long-term maintenance like repainting, refurbishing, and repairing. If the builders of your house are not very skilled, the quality of the building is compromised. Consequently, it will require more maintenance.

A well-built home is more resilient to calamities, thereby making repairs and costly upkeep minimal. The average annual maintenance cost of a house is approximately one percent of the original purchase price.

So, if your home costs AU$200,000 to AU$400,000, then it would likely cost you around AU$2,000 to AU$4,000 to maintain annually.

A reduction in maintenance cost translates into savings. If you have more savings, you can use the extra money for other investments.

Secure your investment

If your house is built with utmost attention to quality, it would be worth the extra cost. It will not only provide you shelter for decades to come but can also give you financial stability.

Your house can provide you with a variety of ways to earn or save for your future.

Of course, ensuring it is well-built it is not that simple. You must hire reputable builders who have the expertise and experience to construct not just the house of your dreams but also one you can depend on for when times get tough, or when you want to diversify or expand your income sources.


Ben White is the Sales & Marketing Manager of Danmar Homes. He has had a passion for home construction from an early age as he grew up in construction and followed in the footsteps of his parents. At Danmar, we believe in building great homes of value for families that want to build an asset and their financial future through housing and developments.


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