Frances Cook: Why ‘house-hacking’ can be the golden ticket

For most people their house is their biggest expense which makes sense — it’s not negotiable to have a roof over your head, and if you own one, you’re investing into an asset for the future.

But what if you could have those pros without the con of actually paying for it?

House-hacking is a strategy that aims to do exactly that. In simple terms, it means anything you do to reduce the cost of your house, or even make it generate money for you.

The original idea of this is to get a bigger property so that you can have more people living there, and charge them enough to cover the home costs while you live for free.

The most private, but also most expensive, way is getting a property made up of several self-contained units. You live in one of them, and charge others to live in the rest.

Another strategy is if you have another standalone property like a granny flat. This gives you the option to live in the main house with your family and rent the flat out, or move into the flat yourself and rent out the main house.

You could even just rent out extra rooms to flatmates for more than the cost of your mortgage or rent. If you do this, be sure to consider how many bedrooms versus how many bathrooms the house has; you don’t want to set yourself up for a daily queue every morning.

Some people even put a caravan in the garden, decorate it nicely, and then open it up to boarders and Airbnb. Many Airbnb landlords say business is already picking up within the domestic market post-Covid.

Some rent out their house, and live elsewhere. Options can include a tiny home in the garden, or hitting the road and travelling in a van. It can be as extreme, or not, as you like. What’s important is that you’re figuring out ways to get someone else to pay for your home.

This is a strategy that’s easier if you own your own home. You have more freedom to find a bigger property in the first place, and can make any alterations needed to give everyone some privacy.

It’s still possible if you’re a renter, just make sure that your landlord is okay with it. Your money-making scheme won’t go well if it sees you turfed out.

Imagine how you can combine house-hacking with other money-saving life changes, like living close enough to work that you walk or bike there. Or simply working from home more often, as many of us learned we could during lockdown. In both of these cases, you’ve just cut transport costs to nearly zero.

If you’re able to reduce housing and transport cost , imagine how much faster you could save, invest, and reach other goals.

For those who find housing too expensive, or are searching for a way to pay down the mortgage fast, house-hacking can be the golden ticket.