How Garden Suites Plans & Laneway Houses Are Changing the Game for Real Estate Investors?
Canada is witnessing a new type of affordable housing. It's not the old-fashioned basement suites, tiny condos, or repurposed shipping boxes.
A Garden house or laneway home is an accessory residential unit (ARU), on an existing property.
It is usually built in the backyards or duplexes of single-family houses or duplexes. Coach houses are 700 square feet in size and can have 1-2 stories.
Some come with garages, others without.
Why is this such an important development for real estate investors?
Garden houses and laneway homes are making it easier to manage the high cost of living in suburban areas. This is also helping real estate investors add to the market by creating additional rental income. Without having to change your investment strategy, coach houses can be a great way of increasing your real estate portfolio. Multi-family rentals can provide a great income stream without you having to venture into commercial, industrial, or multi-family investing.
Investors may struggle to create cash flow. Leveraging a coach house could be a catalyst for positive cash flow and greater returns.
What types of renters does a coach house appeal to?
The beauty of having a coach home on your property is that it attracts renters who want the privacy and security of a separate house in a desirable neighborhood. They will be mostly young and married people, as well as older singles who just want to live in a comfortable space with lots of privacy. These tenants take pride in their homes and are often proud of their space. However, the landlord is always just steps away should any repairs be required.
Do you own a property that could be used to build a coach home? These are some important things to remember:
