Why a Basement Suite?
Many people simply use their basement as storage for christmas decorations and junk. Why not use it to help make you money? The space is already there, it simply needs to be finished. That’s where we come in! A legal basement suite just makes financial sense, no matter what your reason is:
- Available grants thru the city of Edmonton (See links tab)
- Increases value of the property
- Provides additional income
- Pull equity or use income to pay-down other debts (try to pay loans off with the higher interest rates first; credit cards, lines of credit, student loans, etc.)
- Independent living space for family or friends
- Provides affordable housing in developed neighborhoods
- Can help you sell your home faster and for more $ (legal suites are in short supply in the Edmonton area)
Things to Consider
Proper planning is a key component to any successful business. And make no mistake about it, a rental suite is a business. It is always best to have a long term plan and to be proactive rather than reactive. Below is a network of experienced professionals to guide you or at the very least, answer any questions you may have. If you already have a trusted team in place great, if not, please view some of our “preferred partners”.
Organization is also important, so make sure you keep such things as:
- copies of inspection reports from the city
- manuals and warranty information for appliances
- city appraisals/property tax receipts
- paperwork from appraiser: before and after value
- real property reports
- lease agreements
- utility bills
These documents will be invaluable, not only to you, but also to potential buyers down the road.
Questions to Ask
- What are the tax implications for the income I will earn from my suite?
- If and when I sell my property is the money claimed: tax free, capital gains or fully taxable?
- Can I use this income to help qualify for the purchase of additional properties?
- What is the pre-reno and post-reno value of my property?
- What sort of rental income can I expect upon completion?
- Upon reappraisal of my property should I:
- lock into a mortgage at a lower interest rate? Set up a line of credit, so I can gain access to additional funds?
- Pull the equity for other expenses or investments? etc.
- Can I apply for a construction loan?
- Should I purchase my rental thru my corporation or personally?