On the West Shore when you hear the phrase secondary suite, itB次元官网网址檚 usually attached to the words B次元官网网址渕ortgage helper.B次元官网网址�
The presence of suites in new and established homes continues to be an attractive selling feature for buyers and those selling such houses, in combination with the relative lower prices compared to properties closer to Victoria.
Darren Day with ReMax Camosun points out that for every $450 of rent one receives, itB次元官网网址檚 worth roughly $100,000 of borrowed money at todayB次元官网网址檚 interest rates.
B次元官网网址淟etB次元官网网址檚 say youB次元官网网址檙e looking at a home priced at $500,000 to $600,000 that has a suite. When you factor in what youB次元官网网址檙e getting for the rent, itB次元官网网址檚 like paying $350,000 for the house,B次元官网网址� he says. B次元官网网址淗ouses with suites are way more attractive to buyers because of that.B次元官网网址�
New-home developers continue to target buyers looking for a little more house than they might otherwise be able to afford, but willing to take on the landlordB次元官网网址檚 role.
Mike Holmes, managing broker for Pemberton Holmes Realty West Shore, says some people buy a home with a suite and take over the space, while others choose to live in the suite and rent the larger space.
B次元官网网址淎t the end of the day itB次元官网网址檚 about the income potential,B次元官网网址� he says.
On the West Shore, as with heavily populated Saanich and Victoria, there are also many older homes with suites. Most municipalities have largely ignored their presence and continue to do so unless complaints about parking or noise prompt them to take action.
On the other hand, municipal encouragement to construct building-code friendly secondary suites is a relatively new concept, meant to promote density and affordable housing. Compared to the previous generation of in-home suites B次元官网网址� which buyers should include on any pre-offer home inspection list B次元官网网址� suites created as part of new homesB次元官网网址� design provide more added value, Holmes says.
B次元官网网址淎 legal suite is worth more than an illegal suite,B次元官网网址� he says. Then again, he says, B次元官网网址淥lder homes with suites, if theyB次元官网网址檙e planned well and constructed well, they have additional value over those without a suite.B次元官网网址�
When it comes to building legal suites, Westhills offers a variety of options for would-be landlords. The massive Langford subdivision has given buyers other choices on top of the traditional upstairs/downstairs format, from separated two-bedroom carriage homes to one-level separated suites with an alley entrance that sit behind the main house, designed for older family members or people with mobility issues.
B次元官网网址淔rom WesthillsB次元官网网址� perspective, suites address the issue of housing affordability and flexibility in terms of family structure,B次元官网网址� says marketing director Rohan Rupf. B次元官网网址淚n terms of affordability, it acts as a mortgage helper so that a family could get into a home with three or four bedrooms and have a tenant, however, they can still afford to pay for it.B次元官网网址�
editor@goldstreamgazette.com
Q: HOW MUCH RENTAL INCOME CAN BE USED WHEN APPLYING FOR A MORTGAGE?
Since 2010, lenders using the Canada Mortgage and Housing Corporation to guarantee mortgages use only 50 per cent of expected rental income when qualifying buyers who put less than 20 per cent down on a home purchase.
However, CMHC is not the only company that guarantees mortgages for lenders.
Other sources, such as Genworth Canada, guarantee up to 80 per cent of the rental revenue, depending on the lender, according to Realtor Darren Day.
While it always pays to shop around for mortgage rates and terms, itB次元官网网址檚 also important to know your options as a borrower, he says, especially if youB次元官网网址檙e a first-time buyer whoB次元官网网址檚 trying to break into the housing market.
GREATER VICTORIA MARKET UPDATE 禄
MONTH-TO-DATE, AUG. 5/14 COURTESY VICTORIA REAL ESTATE BOARD
禄 54 / 540 -- NET UNCONDITIONAL SALES / TOTAL, AUGUST 2013
禄 107 / 935 --NEW LISTINGS / TOTAL, AUGUST 2013
禄 4,459 / 4,593 -- ACTIVE RESIDENTIAL LISTINGS / PEAK AUGUST 2013
