An in-law suite is an accessory dwelling attached to the main house commonly through the basement or the rear of the house property. Also referred to as a secondary home, granny suite, and basement suite, an in law suite is typically incorporated for an elderly family member but is gaining popularity for the range of purposes it can serve such as being used as a rental property.The self contained property may have more than one bedrooms, a living area, a solitary kitchen, bathroom and a separate entrance from the main home.
In Canada, in law suites offer a multigenerational housing facility whereby families can either provide accommodation for their elderly relatives or to adult kids who finished college and support them till they are financially stable enough to live independently elsewhere. Additionally, in law suites provide a passive source of income to the home owners through rentals. However, state laws have to be viewed and taken care of before renting out the in-law suite as some provinces hold stringent regulations for such types of properties. It is necessary to inquire about local zoning laws and building codes or get a building permit if one plans to build an in-law suite.
Is an In-law suite a valuable asset to your house property?
It is evident in recent years that rising home prices nationwide have left the average Canadian struggling to qualify for a house mortgage. As house prices become unaffordable for many, significant attention of those wishing to fulfill their dream of home ownership is now geared towards alternate and innovative housing options- one of which seemed to be gaining notable traction is the in law suite, based on the findings by a renowned Ottawa based mortgage broker.
As claimed by a mortgage professional, in law suites have proved to be a favorite for home buyers who could now afford to live in a neighborhood of preference that otherwise would have been out of their reach. In addition, they showed great interest in the idea of using the in-law suite as a rental property or to accommodate their elderly relatives. Though the in-law suite has always been a noteworthy feature for home buyers, it seems to have grown in prominence due to an incredible hike in house prices, especially following the COVID 19 pandemic, as the mortgage expert further mentioned.
Reasons why in law suites have gained popularity in Canada
Though in law suites have long been a hit for home buyers, the following reasons explain the sudden surge in the demand for these secondary suites attached to the main home.
- A rise in the Aging Population in Canada has increased the relevance for in law suites as majority of the elderly people seek to live independently whilst also staying close to family.
- Affordable housing– As secondary suites are smaller in size, they are more affordable for the average Canadian, even in locations that are considered the most expensive across Canada.
- Escalating demand for Rental units– With uncontrollable inflation, many people have now come to terms with the idea of renting in lieu of owning a housing property. Interest into buying a house property with an attached in-law suite has peaked among majority home buyers who can afford to get their own home, as they intend to use the secondary suite as a rental unit to form an additional source of income.
- A need for a multigenerational family structure – In law suites provide the most convenient way for families to live together while also maintaining the much necessary privacy with its own separate entrance, kitchen, bedroom etc.
- Legalization of in-law suites– A significant number of cities have legalized in-law suites, making the process fairly easy for home owners to build and rent out these secondary suites.
In-law-suite, a smart or poor real estate decision?
At surface value, the in law suite appears to be a good financial investment. But is it really?
There are certain factors you should consider before fixating your mind to buying or building an in-law suite. Many families do not get along harmoniously so you need to introspect your personal relationship with your in-laws and whether you and the relative occupants would respect each others’ privacy. An in-law suite with a house property or the one in the process of construction, requires a significant financial investment,whilst also keeping in mind the costs of getting permits and zoning laws that govern the area. Ultimately, the decision of having an in-law suite for the purpose of family member accommodation, as a rental unit or other needs is determined by your list of priorities, thus making the decision solely subjective for a home buyer.
