In this day and age of housing affordability and supply issues, it’s no wonder that governments at all levels are scrambling for a solution. One idea is to encourage the construction of secondary suites in existing homes.

For many people, adding an additional unit can open up multiple opportunities. You might be able to earn income from your primary residence without giving up your own living space or privacy. Alternatively, a family member could move in, allowing you to stay close while having help with maintaining the property.

Is a secondary suite something you should consider? In this post, we’ll explore the implications and how it can affect the value of your home and your lifestyle.

Pickering real estate is one of the safest and surest investments you can make. Learn how Team Rajpal can help you grow your portfolio here.

Disappearing Red Tape

Getting permits and navigating the maze of red tape before being allowed to build on your own property was once a major deterrent against adding a secondary suite. That has changed under recent legislation, including the Cutting Red Tape to Build More Homes Act and More Homes Built Faster Act. Now, the objective is to make it easier, less expensive, and faster to build new homes.

Legally, you can now create up to three residential units on a single lot. This could be a combination of:

• Building a basement apartment under the main unit and an attic suite.
• Creating a nanny suite adjacent to the main level, with an additional basement or attic apartment.
• Adding a secondary suite to the main unit and constructing a garden or laneway house in the yard.

Thanks to greater affordability and availability of homes, Pickering is one of the fastest-growing cities in the GTA. Learn more about buying a house here in the posts below:

• What to Consider When Buying a Pickering Home
• How NOT To Buy a House
• Can You Make a Home Offer Appealing Without Paying More Money?

Financial Assistance

Renovations have never been cheap, and the rising costs of labour and materials aren’t helping. However, certain incentives can make adding a secondary suite more affordable than you realize. Not only that, but you’ll also enjoy a stream of passive income that can help you cover the costs, possibly even leaving you with funds left over.

In the meantime, new mortgage insurance reforms could soon make it easier to refinance your home to construct a secondary suite. Homeowners who meet the criteria could also qualify for low interest loans to make adding additional units more accessible.

Ease of Construction

If you’ve ever thought about constructing a laneway house, you may have been put off by the amount of work involved. It’s expensive, and often means living in a torn-up construction zone for months on end.

New prefab construction models can eliminate all of the hassle and guesswork. For example, companies like Metrosuites offer prebuilt homes with complete turnkey installation. They clean the area, lay the foundation, and even remove any sheds or other obstacles.

Once your unit is ready, a crane simply lifts it into place. Your laneway house could be fully functional and ready to welcome a tenant faster than you ever anticipated, with desirable and modern-looking accommodations that are sure to impress!

Should you consider Pickering for your next home? The posts below might help you build your case:

• Why Should You Upgrade Your Family Home in Pickering?
• Does Pickering Have High-Quality Schools?
• Is Pickering a Good Place to Live?

What to Consider Before Adding a Secondary Suite

Though adding a secondary suite may be easier and more affordable than in the past, there are still some important considerations before taking the plunge. First, there is still a substantial investment, even with all of the incentives available to you.

Secondly, you should consider whether or not you want to become a landlord. It can be a fantastic way for the right person to generate income and build equity. For others, it can cause more heartache than it is worth.

Lastly, you should run the numbers to be sure adding a secondary suite will work financially. Determine how much it will cost from start to finish, and be sure to cushion your budget to allow for the unexpected.

Once you have an idea of the investment required, take a look at how much you might be able to earn each month by renting it out. Will you break even at the very least? If not, will the equity gains be worth the added carrying costs? A local real estate team that works with investors can help you understand the potential and the risks.

Considering investing in Pickering real estate? The posts below might give you some ideas:

• Long-Term Versus Short-Term Rentals: How They’re Different
• Is Buying an Assignment Sale in Pickering a Good Idea?

The Benefits of a Secondary Suite

The first advantage of installing a secondary suite is obvious; you can earn income each month by renting it out to a tenant. It’s a win-win situation in most cases. A tenant gets an affordable place to live, and the funds help you carry the cost of your own mortgage.

If you find a close friend or family member to rent the unit, it’s even better. There’s nothing quite like keeping your loved ones close while you all maintain your privacy and separate living spaces.

The long-term benefit is in your equity. Homes with income potential tend to grow in value faster than standard properties, which increases your purchasing power and net worth.

• If you decide to sell, there’s a good chance you’ll receive a healthy return on your investment.
• If you decide to stay, your equity gives you multiple options for your future.

At some point, you might even consider the possibility of moving into the secondary suite yourself while renting out the rest of your home. This is actually a creative way for first-time buyers to get into the real estate market – condos are not your only option.

Retirees can also benefit from secondary suites because they can stay in the home and neighbourhood they love while generating a substantial income to fund an elevated lifestyle.

Should you explore the possibility of a secondary suite in Pickering? Our experienced real estate agents can guide you through your options, whether buying a home with an existing suite or building one. Contact us today at 647-875-8000 or email info@teamrajpal.com to learn more.

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