BY: ELIZABETH BINDERT
For decades, we have strived to own a home, but with the ever-rising property prices, this desire is becoming less of a priority, especially for those free-spirited travellers. Grown-up travellers are faced with the dilemma of making the financial decision of investing in property, or satisfying their wanderlust by traveling around the world. Good news; you don’t have to choose. You can invest and travel the word. These tips can help.
A great way to own a home and still afford to travel the world is by using Airbnb. This allows you to rent out your space when you are not using the extra rooms, or rent out the whole home when on adventures around the world. Using Airbnb, or a similar service, gives you a little extra green in your pocket. Depending on your location, you can even make extra income from renting out your home. You no longer have an excuse to postpone traveling because you have to pay the mortgage. There is freedom and flexibility with Airbnb since you decide when the house is available for guests.
You may want to brush up on how to be a good host. This will give you positive reviews and more guests, which equates to more income!
Change how you travel
When you become a homeowner, it doesn’t mean your dreams of traveling are over. By changing how you travel, your new financial obligations can be accommodated comfortably. Small changes in your travel plans can mean a lot to your dreams of managing a mortgage and financing your travels. For example, if you planned for a month-long holiday in Asia, adjust it to two weeks to save a little money and still have enough for your mortgage payment.
Instead of visiting Europe, go to Africa or Asia where things are cheaper and your dollar can be stretched further. You can stay in hostels or in an Airbnb, instead of hotels, to spend less. Consider occasionally cooking rather than eating out, and cut back on souvenir shopping while traveling.Have a safety net
If you are considering traveling long term, you also need to plan for unexpected expenses. You never know when something will break and need financial input – for example, a broken sink or hot water system at the last minute. Consider some source of income like working while you travel to fund the expenses. This will give you peace of mind allowing you to enjoy your travels. Without a safety net, traveling loses its fun as you will be preoccupied with the pending or upcoming expenses.
Have you ever considered being a digital nomad? Read this woman’s story of leaving her desk behind to travel.
Make a proper budget
When you know you love traveling and still want to own property, planning is crucial. Make a long-term budget for your finances, and allow for holiday savings alongside your property purchase plans. This will help you factor in your loan repayment ability and how much you need to save for travel without affecting your regular expenses adversely.
Account for all your expenses when you have an income and when you will be traveling so you’re covered financially. Consider property expenses like council and county taxes, other loan repayments, mortgage repayments, internet, phone, electricity, gas and water among other regular expenses. Also consider making your home more energy efficient to cut costs.
To be able to manage traveling costs and mortgage repayments, your extra spending should be controlled. Choose a home that will not require lots of updates and fixes, like an entire kitchen makeover. This ensures you don’t have to take money from your travel savings.
If possible, buy a house with an extra bedroom so you can rent it out to raise money for your travel plans or use it to cover the property expenses. Stick to the usual furnishings and electronics to avoid unnecessary spending when you are saving for travel. You can instead buy things at garage sales or second-hand shops at a fraction of the price since you won’t even be home to use them that much!
Traveling when you have already bought a home is a dilemma many homeowners go through. However, there are many options available to enjoy both worlds of owning your home and traveling the world without pushing your budget. Even with the decreasing need to own homes, you can still buy your dream home, or an apartment to be your base, and roam the world.