In Saskatoon’s competitive housing market, many homebuyers are looking for ways to maximize their investment. One increasingly popular option is purchasing a home with a rental suite. Whether you're a first-time buyer, a growing family, or someone looking to supplement income, adding a rental suite to your home can provide a range of financial benefits.
At Mike Hidlebaugh Mortgage, we understand the unique needs of homeowners in Saskatoon and surrounding areas. Here’s why buying a home with a rental suite could be the right move for you.
1. Generate Additional Income
The most obvious benefit of owning a home with a rental suite is the potential to generate additional income. Renting out a basement suite or secondary unit can help you cover part of your mortgage, property taxes, and utilities, which in turn improves your overall cash flow.
Offset Mortgage Costs: In a competitive market like Saskatoon’s, having rental income can make homeownership more affordable. By renting out a suite, you can use that extra income to cover your monthly mortgage payments, helping you pay off your home faster or reducing financial stress.
Supplement Income for New Homeowners: For first-time homebuyers, having a rental suite can provide financial support as you adjust to the costs of homeownership. This additional income may help cover unexpected maintenance expenses or save for future investments.
2. Increased Property Value
Homes with rental suites are often more attractive to buyers, particularly in markets like Saskatoon where demand for affordable housing is high. Having a legal rental suite can increase the overall value of your property and make it more appealing when it’s time to sell.
High Demand: As more people look for affordable living options in Saskatoon, properties with rental suites tend to be in high demand. This can give your home an edge in the real estate market and boost your resale value when you decide to move.
Legal Rental Suite: If your rental suite meets all the local bylaws and zoning regulations, it’s seen as a value-added feature. Legal rental suites often increase the home’s market value, making it a smart investment for the future.
3. Greater Flexibility
Owning a home with a rental suite provides flexibility for your future living arrangements. The suite can serve a variety of purposes depending on your lifestyle and needs:
Space for Family or Guests: If you’re not interested in renting out the suite, it can be used as a guest house, in-law suite, or space for adult children. This can provide more privacy for family members while keeping them close by.
Potential for Airbnb: If you’re interested in short-term rentals, a rental suite can be an ideal space for platforms like Airbnb. This allows you to generate income without committing to a long-term tenant.
Home Office or Studio: In today’s work-from-home era, having extra space for a home office or creative studio is highly desirable. The rental suite can serve as a quiet, dedicated workspace, giving you more flexibility in how you use your home.
4. Improved Mortgage Approval Chances
For some buyers, the additional income from a rental suite can improve their mortgage approval chances. Lenders often factor in potential rental income when assessing your ability to make mortgage payments, which could allow you to qualify for a larger loan or better terms.
At Mike Hidlebaugh Mortgage, we help homebuyers navigate these financing options. If you’re looking to purchase a home with a rental suite, we can guide you through the mortgage process and ensure you’re fully aware of the financial benefits and responsibilities.
5. Contributing to Affordable Housing
In addition to personal financial benefits, owning a home with a rental suite can contribute to the availability of affordable housing in Saskatoon. With housing demand on the rise, adding a secondary suite to your property helps provide affordable rental options for others in the community. This can be especially meaningful in cities like Saskatoon, where rental properties are in high demand.
Conclusion
Buying a home with a rental suite in Saskatoon is a smart financial decision that can provide additional income, increase property value, and offer flexibility in how you use your home. At Mike Hidlebaugh Mortgage, we’re committed to helping you find the right financing solutions that fit your needs.
If you’re interested in learning more about how purchasing a home with a rental suite can benefit you, contact us today. We’ll guide you through the mortgage process and ensure you’re set up for success in the Saskatoon housing market.
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