People have many reasons for outfitting their homes with secondary suites. Some of these reasons may include increasing their home’s value, providing additional living space for family or friends, or generating extra income. If you are reading this you might be considering it yourself. Let’s explore why turning your basement into a secondary suite may be the right choice for you.
1. Unused space
You have a large, unfinished basement that is rarely used. You are considering just doing a standard basement development, but if your family doesn’t need the extra space why not invest in a money generating Secondary suite? A Secondary suite is a self-contained living unit that is part of a single-family home and can be rented out for additional income. It typically includes a bedroom, bathroom, living area, and kitchen and can be a great way to generate money. The initial cost may be more than a regular basement development, but the return on investment can be worthwhile if you are able to rent it out. Additionally, your Legal Suite Calgary can increase the value of your home and provide an extra source of income. Tartin Wood can help with Basement suite renovations.
2. Multigenerational families
More and more people are finding that it makes sense to live in a multi generational situation where multiple generations of a family are living together in one home. This could be a situation where parents are living with their adult children and/or grandchildren, or an adult child is living with their aging parents. Whatever the situation is, a lot of people still want privacy and to have a space to call their own. Creating a legal secondary suite ensures that they have safe space to stay and still have the ability to live as independent as they like.
3. Passive income
It seems that nowadays everyone is looking for a way to create passive income and what better way than to use space you already have to create it. It will take a sizable investment to create a Calgary secondary suite. In a few short years the investment will be paid off and generate great income for many years to come.
According to Statistics Canada, 44% of Canadians over the age of 15 reported being very concerned about the impact of rising prices on their ability to meet their day to day expenses over the next six months. This concern is likely to be compounded by the fact that wage growth has been lagging behind inflation in recent years, meaning that the purchasing power of Canadians has been steadily decreasing. On top of this, the cost of living has been increasing, with the prices of basic necessities such as food, rent, and transportation all going up. This makes it increasingly difficult for Canadians to keep up with their expenses, and with prices continuing to rise, this concern is likely to remain in the months to come. Using the income from a legal suite to offset the reality of today’s inflation in one great way eases the effects of inflation.
5. You are elderly or disabled or just plain busy
Are you finding it hard to keep up with the regular maintenance duties required of a homeowner, such as shoveling sidewalks, mowing the lawn, and any other seasonal chores? If so, why not consider including these responsibilities as part of your secondary suite rental contract? Not only would this provide you with an additional source of income, but you could also have someone who is willing to help with the upkeep of your home. It’s a win-win for both parties.
6. Quality tenants
Chances are that if you have a tenant looking specifically for a legal secondary suite in Calgary, they will be a higher quality renter who is more focused on convenience and safety than price point. This kind of tenant is likely to be more reliable and responsible when it comes to paying rent on time, respecting the property, and taking care of necessary maintenance and repairs. They are also likely to be more willing to comply with city regulations and laws regarding secondary suites, making them an ideal tenant for landlords.
7. Government grants
The Canadian federal government has initiated a one-time 15 per cent tax refund for renovation costs up to $50,000 for a secondary suite with a private entrance, kitchen, and bathroom. To be eligible, the resident of the renovated unit must be a family member who is a senior or an adult with a disability. This is an excellent opportunity, you give your family privacy, security, and independence if situations change in the future you still have a way to create passive income. We recently wrote another article specifically about this topic, click here to download it
8. Frequent traveler
Having someone to tend to your property while you are away is a great option if you are a frequent traveler. The presence of a tenant in your Legal Suite Calgary can make the property appear occupied, while they can also help with tasks such as shoveling sidewalks, mowing the lawn, turning the lights on and off regularly, and even collecting your mail.
9. You already rent your basement out and it’s going to be more expensive after 2023
Starting in December 2023, the city will no longer offer a grace period for those who have an illegal secondary suite. This grace period allowed individuals to have the opportunity to convert this illegal space into a legal secondary suite without facing any penalties. Taking advantage of this grace period now would be beneficial in the future, as it will greatly reduce the cost of legally converting the space. It is important to note that any illegal secondary suites present after December 2023 will be subject to fines and other penalties. It is essential to take advantage of this grace period before it ends.
10. Resale value
Adding a secondary suite will allow potential buyers to qualify for a higher mortgage which will increase demand and the price for your home. You will be able to recapture much of your initial investment when you sell your home. If the initial investment scares you, the fact that you will regain much of the cost upon resale should make your decision easier. Chat with the mortgage advisor and property assessor about doing an article.