Many home buyers are interested in adding a basement suite to their new build, but have a lot of unanswered questions keeping them from moving ahead with basement development.
One concern many buyers have when considering a basement suite is the upfront cost. While adding a suite will add approximately $75,000 to your home’s purchase price, there are so many financial and lifestyle benefits to consider when making the decision. In fact, letting your mortgage lender know about your plans to add an income suite to your home can increase the total mortgage amount you are approved for.
Leaving your basement undeveloped doesn’t come with any additional costs, but it’s also not providing you with much benefit beyond storage space. Considering the average rent of a brand new one-bedroom suite in areas like Brighton or Eastbrook is $1200/month, your investment will pay for itself in 5 years. After that any rental income you make is profit! You can either choose to apply this income directly to your mortgage to pay it off faster or use it to provide wiggle room in your family’s own monthly budget.
You also won’t have to worry about finding a renter since rental properties, especially basement suites, are in high demand right now. A new property in a great community offered at fair market value will have no problems finding a tenant. You’ll also have peace of mind knowing that your investment is close by. Unlike off-site rental units, it will be much more convenient for you to keep tabs on your suite.
An undeveloped basement also won’t help when adding to your home’s resale value. Potential buyers will be pleased to see additional developed space with revenue potential for their new home as well. We can help you make the most of your basement space with our professionally designed floorplans. Additional developed space with bedrooms and bathrooms always add value! If you rented the suite out to a tenant, you’ll also be able to provide potential buyers with the proof of your home’s income potential. Selling your new home isn’t top of mind right now, but planning for your future and considering how your investments will pay off is always a smart choice.
Another concern many people have is whether the suite will meet legal requirements. When you buy a new home with Pacesetter Homes Saskatchewan, we have already done the work to make your home basement suite ready when it comes to electrical and HVAC. The basement is set up with a separate utility room, so tenants have access to their own water heater, electrical panel, and heat recovery ventilation system. Every basement suite is also fitted with baseboard heaters and its own meters, meaning their utility bills are separate from yours. We also build the suites to be sound and fire separate from each other, with 3 fire safe doors between your home and the suite. While adding a suite to your home may be new to you, it is not to us! Our team has built suites in many of our homes and knows exactly how a suite should be built to all the legal requirements.
Developing your basement can benefit your family beyond rental income. It can also be a great solution for additional family members, such as an aging parent or a university student. A separate space for family members like these can provide a sense of independence while keeping them close and giving you peace of mind.
Additional basement space can also provide your family with flexibility to use the space however you need. Long term guests like friends or family visiting from far away can have their own separate zone. Even though hosting guests is great, having space and time to yourself can be much needed. Most guests will also appreciate having their own space, especially kitchen and bathroom space in the morning.
Many people have also switched to a work-from-home or hybrid position. Having a dedicated office space helps keep you both productive at work and unwind when you’re off the clock. Many jobs also lend themselves to setting up an office or studio from home, like hair stylists, massage therapists, or personal trainers. Instead of leasing an outside space, you can build your home equity and business at the same time. All of our basement suites come with a separate side entrance, so your clients don’t need to enter your family space in order to visit. Having a separate bathroom for clients is also a bonus as well.
If you’ve got more questions about adding a basement suite to your new build home, please reach out to us and we’d be happy to help answer your questions!