Thinking of Adding a Rentable Basement Suite to Your Home? Read this First!
There is a new trend in the construction market with more homeowners looking for homes with basement suites. Income suites work well for certain types of home buyers. Learn more about the advantages to see if this might be something that’s right for you.
1. Pay Your Mortgage Faster
The biggest incentive to add an income suite is to make your mortgage more affordable. Rental income is not guaranteed, so you’ll have to qualify for the home purchase on your own, but once you have a tenant, the monthly rental income can be put straight towards paying off your mortgage faster.
Putting extra money toward the balance of your mortgage decreases the amount of overall interest you pay for the term of the loan and shortens your time frame. In fact, if you were to consistently pay an additional $1,000 a month on a $350,000 mortgage, you could fully own your home more than ten years earlier.
2. Create Flexibility in Your Budget
If paying off your mortgage isn’t a top priority, it can provide budget flexibility. You can think of it as money you’re saving on your monthly payment. For instance, if your monthly mortgage payment was $2,000 and your rental property earned you $1,200 a month, you’d only have to pay $800. That frees up money in your budget for things like vacations, home renovations, or entertainment.
3. Increase your Home’s Resale Value
You’re probably planning on spending a few years in your new home, but when it comes time to sell, having an income suite can increase the home’s value. Buyers like to have the option of reducing their mortgage costs with an income suite. Other people simply like having a finished basement area to use for other purposes.
4. Create a Comfortable and Affordable Home for Aging Parents
Creating a basement suite doesn’t mean that you must rent it out. Many homeowners choose to create suites for family members, such as in-laws. Some parents do pay money to live in the suite. Others offer to watch the children, saving the parents money on childcare costs. Those who choose to do this typically love that the arrangement creates close bonds between grandparents and grandchildren while contributing to mortgage payments.
5. Give Yourself More Options for the Future
No matter how it’s designed, additional living space in the home is beneficial. You may not want to have someone renting out space forever, but by adding a finished basement in the original home build, you’ll be saving yourself the cost of a remodel several years down the road. Renting the suite may make sense now, but in the future, you could turn the space into a guest suite, a man cave, or a fun playroom for the kids you hope to have. Adding a suite doesn’t limit the functionality of your home. It creates new possibilities.
Thinking a basement suite is right for you? The Majority of Westbow Construction’s single family homes have the ability to have basement suites added. From Westbow Construction’s Elk Creek homes in Promontory to the Freshwater homes at Webster Crossing in Sardis, finding a location that gives you the benefits of a basement suite in a newly built modern home in Chilliwack is easier than ever.