As house prices continue to increase over time, it becomes more difficult for first time home owners to break into the housing market. Even with the ultra low mortgage rates that are currently available, doing some quick mortgage calculations, estimating bills and taxes, etc, will give you a number that can be staggering. This was my own experience when I bought my first home as the market was going crazy in Saskatoon in 2007. Luckily, I got some terrific advice from family members that I should make a bit of a sacrifice in buying a property with a rental suite in the basement to offset the mortgage. Once you work in a rental cheque into the "home buying equation", the payment seems quite manageable! With my first property, the revenue generated from the two bedroom suite completely covered the mortgage. Talk about a "suite deal"!
As I alluded to above, it is definitely a sacrifice to rent out a portion of your home and it can be quite a bit of work at times. For the most part, the compensation received in the form of rent far outweighs the amount of work involved. The inconvenience, putting up with noise, and losing half of your living space may not be something a lot of people are willing to deal with and I can completely understand that. It is not always the most pleasant experience, but in retrospect, it is a very nice feeling knowing that my mortgage is being paid off and my largest investment I have ever made is constantly appreciating with no monetary investment on my part.
There is much to think about and consider when deciding to go this route. One deciding factor for myself was that I knew my first home wouldn't be my home for too many years and that I could move up to something more desirable in a few years and have a nice revenue property that's already generating positive cash flow. It is always going to be a sacrifice of some sort, but for me, it was a no-brainer.
I am very passionate about real estate investing and revenue properties. I have much faith in our real estate market in Saskatoon and I will always believe in real estate investing. If you'd like to discuss revenue properties with me, I'd be more than happy to do so.