Building a laneway house on the back yard can become one of the best investments for your property. How is it different from traditional houses? Let`s figure it out.
The City of Toronto defines a laneway house as a self-contained residential unit located on the same lot as a detached house, semi-detached house or townhouse, and generally located in the rear yard next to a laneway.
Basically, it`s a small and completely detached unit that includes separate living and outdoor space. Such constructions were legalized in Toronto in 2018 as an attempt to ease the housing crisis of the city.
We strongly believe that laneway houses are the future of cities with rental crises, such as Toronto. Having a laneway house is a solution that benefits everyone. It is a perfect source of income for property owners and a great budget-friendly option for potential renters.
However, one of the major problems is getting a permit to start the process of building. Is it worth the buzz? You can decide it yourself after reading this article about the advantages of having a laneway house.
An additional source of income
Some (majority) of homeowners decide to build a laneway house to create another source of income from renters. That’s a traditional way to ease paying off a mortgage or save funds for other necessary investments (such as college fees).
We all agree that Toronto is not a cheap city and renting out property is a common practice for citizens. The main advantage of renting out a laneway house is that you get to keep your privacy and don`t have to share your own home with other people.
Another valuable argument is that having a laneway house is the cheapest way to get into real estate business. Compared to buying a separate property, the budget is much more affordable, when the potential income is still impressive. A laneway house is a great solution for people that have extra space on their back yard. You can even move into your new laneway unit and rent out the main house.
Increased value of the Property
Having additional living or renting space will increase the value of your property for potential buyers. Having another rental unit makes your house more attractive and even more affordable, as there is an obvious opportunity for future occupants to pay off the investment.
This factor can make your house more valuable and competitive on the market. Building a laneway home is one of the best investments you can do with your property. Sometimes even fully renovated houses don`t return the cost spent on renovations, as it doesn`t reflect the preferences of the new owners. However, having a potential income source is a strong argument in favour of your property.
Even if you didn`t think of selling the house in the nearest future, take it as a real estate investment that is always a great idea.
Extended Living Space
If you are not interested in changing a place of residence or taking on new tenants, a laneway house is a great way to create an extra living space for your extended family.
It may be your parents on a retirement, kids coming back from college or other relatives moving from another city. In any way, if you want to keep your privacy, but still maintain a close family connection, what can be better than living 5 meters away from each other? It`s a great way to find budget-friendly accommodation for young families.
Also, living in a laneway house can be a choice for your own retirement. If you feel that the main house would serve better to your kids and grandkids, you don`t have to leave your loved neighbourhood. Simply moving to the backyard will be the easiest solution for you and your family.
Customizable and Energy Efficient Unit
One of the biggest challenges when buying the house of your dream is that you need a big budget to actually make it the house of your dream. Either you find a house that you like and spend a fortune to own it, or you decide to build it yourself, which also leads to huge costs.
Despite some by-law limitations in size, laneway houses can be highly customizable. It will require fewer funds than buying a new property or building it from scratch, so you can invest the savings into renovations. You can also make it as energy efficient as possible to avoid extra payments for utilities in future. Using energy-efficient appliances and solar panels in addition to the small size of the house will definitely help you save lots of money.
If you decided that a laneway house is a perfect project for your backyard, don`t hesitate to contact DeckCrew! We will be happy to answer all your questions and build a laneway house of your dreams.