Second suites in homes are nothing new. For those with the space, creating a basement apartment can be a sound approach to making home ownership more manageable. Qualified home buyers often consider homes of a higher caliber and price than they might otherwise be comfortable looking at once they factor in the financial returns possible from renting out a second suite.
The most recent statistics from the City of Barrie showed the number of "two unit" houses in Barrie at around 1500. These are two year old stats so that figure has no doubt grown. Of those suites known to exist by the City, only about 10% are registered. Of those that have applied for legal status roughly one in two applicants are successful in registering on first try according to the report.
Of those that don’t meet qualifications, most need some level of upgrading. The more commonly sited deficiencies are; missing smoke and carbon monoxide detectors, blocked means of egress, inadequate windows for light and ventilation, substandard heating plumbing and electrical and poor or deteriorated quality of the building (stairs, railings floors etc.)
The City of Barrie recognizes its growing demand for rental accommodation as well as the fact that second suites in residential homes is a viable means of addressing that need. At the same time the City of Barrie cannot compromise on health and safety standards by turning a blind eye to existing or future unregistered apartments.
The first thing to learn if you are considering a second suite is whether zoning for your area permits two-unit houses. Next is to know what is required for second suite to be deemed compliant. The library, the internet and a call to your City Councilor should provide you with the facts. You want to look for a copy of the Ontario building code, the Ontario Fire Code (re: two unit houses) and the Property Standards by-law. These will contain much of the information you need to create a compliant second suite.
There is a fee for application and registration that increases if a unit requires re-inspections due to failure to comply on previous inspections.
Only you and your family will know if the efforts and initial costs are justified in the return you will get.
A family with two small children purchased their first home through me four years ago. It was only by chance that one home we visited in our house hunting contained a second suite. After an evening with the calculator making projections they reevaluated their needs and came back to me with the decision to buy the home with the second suite. They created a savings account specifically for the incoming monthly rent cheques and allowed that income to accumulated into a healthy down payment that this spring they put on a new home, their dream home that four years earlier was out of reach.
They then made the decision to keep the first home and now rent out the upstairs as well as the basement suite. The incoming rent covers the mortgage and taxes and provides a three hundred dollar monthly surplus that they intend to use for a five star family vacation each year. The home has appreciated about $70,000 over four years and in addition to accumulating paid down principal they are hopeful it will gain at least another $100,000 in resale value by the time their two daughters are ready to start university.
By thinking long term, their decision to sacrifice the use of a basement four years ago has changed the direction and quality of their lives. Instant gratification often guides our decisions when shopping for a home but by tempering it with some financial foresight often you can move the bigger dreams within your reach.
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