According to the Lila Delman website, gorgeous and huge homes are waiting to be purchased in almost any desirable neighborhood. Many buyers assume a large home is going to be too much work or incredibly expensive, however.
One way to finance a large home and still have funds left over is by freelancing or self-employment. There are several ways that freelance jobs can make homeownership easier for you, as well as reduce expenses over time.
Lenders are adapting
Although mortgage lending has been tight since the 2008 financial crisis, more lenders are seeing freelancers in a new light. With many entrepreneurs making their way in the recovering economy, more lenders are willing to consider financing home ownership dreams.
Ideally, you need to have two years of freelance income documented through business and personal tax returns. Lenders need to know how steady the freelancing work is, if you can liken it to the standard W-2 form from an employer.
They also need a current look at your income up to the date of your loan application. With steady work, homeownership is just as easy for the freelancer as for the average full-time employee in a corporation.
Time for maintenance calls
In some ways, home ownership can be easier for a freelancer because of the flexible work schedule. Home appliances, from laundry systems to HVAC machines, as well as other home maintenance needs are often neglected because of work constraints, which can lead to costly repairs in the long run. However, according to professional Tallahassee roofers, “Regular inspections by trained professionals will help spot problems before they become serious.” While scheduling home maintenance services can cost a bit of money up front, it can save you some serious money down the road.
Freelancers who work out of their home can schedule consistent service calls, be dependably on site for the technician, and keep up with maintenance to prolong the life of household appliances. In fact, this process saves the freelancer money because of efficient system operations.
Any DIY issues that arise can also be scheduled into a weekday so you can save even more money as a freelancer on a slow work day.
Home ownership costs can add up, from utilities to property taxes. However, if youâ€™re working out of your home exclusively, you can save money on basic monthly charges.
During tax season, freelancers take the workspace percentage and apply it to the mortgage payment and all utilities. The percentage of the home thatâ€™s used solely for work is a write-off.
Tax returns are larger, which allows freelancer/homeowners to reinvest the money back into the house or place it into savings. Some homeowners couldnâ€™t afford their mortgages without this tax benefit.
Freelance businesses often rent office space with a high overhead, from exorbitant phone bills to air conditioning. Many apartment rentals donâ€™t allow people to run a business out of the property, relegating them to an office.
When freelancers own their home, they can section off a room or entire floor to run the business. Thereâ€™s no extra overhead or commute. Homeownership gives you the chance to build your business and handle slow periods without catastrophic results. Overhead is an expensive part of running most businesses.
If youâ€™re considering a freelance career, evaluate all the facets of self-employment before starting out. Each business is unique; it can benefit the home in both small and large ways. Many people have found it a lucrative choice, given the tax perks.