Benefits of building a laneway house!
Everybody who is thinking of building a laneway house has in mind to do a due diligence and see the pros and cons of undergoing such a project.
Of course, there are some cons such as losing privacy and sharing your yard with others, but in general, there are more pros to the cons. That’s why the laneway homes become so popular and a quick fix for our housing shortage in the Lower Mainland.
And the following are some of the benefits:
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Benefits of having a Laneway house
- For a home buyer who wants to live in the subject property, a Laneway home is a good mortgage helper as well as a source of income
- For a home buyer who is a passive investor and wants to rent out the house, there would be more income on investment which results in better ROI
- For a home seller, it is an added value that can result to increase in the selling value
- For a home seller, this feature will sell the house sooner
How to Finance Laneway house,
Is it financially suitable to build a Laneway home?
The cost of building a Laneway home is approximately $400K (close to $450k including connection fee and GST). The mortgage payment on $450k is about $2,000 a month for a 25-year term depending on the interest rate you are locked in.
A Laneway home can be rented for around $2,500 to $2,800 which will bring positive cash flow to a family.
In some cases, the homeowners move to the newly built Laneway home and rent the main house for over $4,500 which is a source of income for the family.
Timeline
How long does it take to have a Laneway home built?
After initial conversation and agreement, it will take about 45 days to have the documents ready, 6 months for the city to issue the permit and 5-6 months of construction altogether just over a year.
To know more about the cost and or services please read this Blog!
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