Do you want to buy your own home, but can't afford all the costs?
Get a tenant!
Buying a house with a basement apartment gives you the option of renting the lower level and enjoying the upper level for yourself, or living in the lower level and renting the upper floor rooms to a family or students.
A one-bedroom basement apartment can typically bring in anywhere from $600-900 per month in Guelph. That will cover a large amount of your mortgage payments!
Here's some ideas to look for to add value to your home:
separate entrance to basement
one or two separate bedroom(s) in basement
parking space for tenants or close to bus route for students
houses near the University of Guelph will greatly improve marketability and the resale value of your home
The City of Guelph has rules and regulations regarding accessory apartments, and all two-unit houses in Ontario must abide by the Ontario Fire Code. Don't put yourself at risk for a huge fine and loss of your rental income, before buying a home, check with your Realtor if the accessory apartment is legal!
There are other things to consider when purchasing a home with a rental unit. Generally your mortgage broker will allow 80% of your rental income to be included in your personal income amount. So if your annual income is $35,000 and your potential rental unit will rent for $750/month, you will now be able to qualify for a mortgage as if your income were $42,200 (750 x 12 x 0.80). That can greatly increase the amount of money you can borrow! For more information on mortgages, check out Centum Discount Mortgage Canada's website.
Mortgage rates are still great! So give me a call to start looking today – 519-400-9707. There's no obligation to buy, but if you'd like to see what you could be living in, I'd be happy to show you homes in Guelph.
Thanks for reading,
Cip de Vries
Real Estate Sales Representative
Century 21 Home Realty Inc.