Unlocking Value: Purchasing a Home with a Rental Suite
In Saskatchewan’s real estate market, homes with rental suites offer unique opportunities for buyers. These revenue-generating units, often called basement or secondary suites, offer significant advantages for long-term investment potential and financial viability, especially as housing costs continue to rise.
Financial Benefits
Renting out the secondary suite in a home provides an additional income stream, helping to offset mortgage payments and making home ownership more affordable for a greater number of Canadians. Any additional funds from this income can be allocated to other financial goals such as retirement, education or even investing in additional rental properties in the future. The inclusion of a rental suite in a home may also improve the affordability of the home and allow buyers to qualify for larger mortgage amounts based on the income from the suite or suites in the home.
Increased Property Value
The addition of an income-producing suite in a home helps it to appreciate faster than homes that do not have a secondary suite. These added income from the rental suites help to make the property more attractive to buyers and increasing the resale value. Additionally, the ability to offer a rental unit can help the property stand out against competition and have more qualified buyers due to the additional income, leading to more interest overall.
Multi-Generational Living Flexibility
Suites also offer flexibility in living arrangements, especially to families looking to live in a multi-generational household. A suite can offer the ability for older generations to have privacy but live close to their families, giving them the ability to remain in their home longer.
Tax Advantages
A revenue suite may also offer some tax advantages to home owners. The rental income can be offset by expenses related to maintaining the suite such as repairs, property managements fees and utilities. Be sure to consult with a tax professional to fully understand what advantages may be available prior to making a decision. It is also important to review any zoning and regulations to ensure the use of the suite falls within allowable limits.
More Affordable Housing Options
Owning a home with rental suites can also help the local community by offering more affordable options for local renters. In a time where rent increases are common and affordable housing is harder to find, offering a rental suite helps address the housing demand and supports the community’s needs.
Purchasing a home with a rental suite is an excellent way to enter the property market, upgrade to a larger home, or expand a real estate portfolio. It's essential to carefully consider all aspects and requirements and consult with professionals to ensure the investment aligns with each buyer's goals and needs.
