You can afford that house, but you don't want to pay for it?
Tuesday Sep 18th, 2018
You've been to the bank, or talked to a mortgage broker and they said that you could afford to buy an expensive house. However, you are NOT comfortable paying that much for a mortgage. We've all heard that expression..." I don't want to be a house poor".... I completely understand and AGREE with this expression. We have only one life to live and no one knows how long this journey will be for us. Therefore, live smart and enjoy the life to the fullest. Having said that, with a proper planning and accounting, you could be able to afford that house and still live the similar life you had, before you bought that home.
So, here is one of the ways how to get that "cute as a button" bungalow, with a pool and still keep the same lifestyle... RENT OUT THE BASEMENT!
Bungalows are well known as properties with great basements, sitting on a large lot. They usually have full size basements with high ceilings and large windows.
The income you will receive will be enough to cover a good portion of your mortgage expenses AND you will be able to enjoy that nice house with a pool!
Now, the first step is to look for property that has a good size basement, with separate entrance. But, that is not all! You and your realtor should also check some other requirements. Here are some tips for your:
- Are there enough parking spaces for you and potential tenant? (the best are “double wide” driveways. That way no worries who will park firstJ)
- Is the public transit close by? (Very often, families that rent out basement apartments do not drive, or have only 1 car).
- Is there at least one good size window, which can be used as an emergency exit? (if there is not, check if it is possible to expand the existing one).
- School rankings (important to many people and a good resale feature).
- Closeness to the HWY’s.
- City By-law (some cities allow renting basement apartments, but will need some work and approvals).
I've already mentioned before that bungalows are usually located on large lots... There can be another potential great investment, down the road..... maybe built a new home??