Garage suites are becoming increasingly popular as investment properties in Calgary. They offer a number of advantages, including:
- Increased income: Garage suites can provide a significant source of additional income. In Calgary, the average rental rate for a one-bedroom garage suite is over $1,000 per month.
- Appreciation potential: Garage suites are expected to appreciate in value over time, just like any other type of real estate. This is because the demand for rental housing is increasing, and the supply of garage suites is limited.
- Tax benefits: There are a number of tax benefits associated with owning a garage suite. For example, you can deduct the expenses associated with renting out your garage suite, such as property taxes, mortgage interest, and repairs.
- Flexibility: Garage suites offer a great deal of flexibility in terms of how you use them. You can rent them out to tenants, use them as a home office, or even live in them yourself if you need to move out of your main home for a period of time.
If you are considering building a garage suite as an investment property, there are a few things you need to keep in mind:
- Location: Location is important when considering any investment property, but it is especially important for garage suites. Garage suites in desirable locations are more likely to rent quickly and command higher rental rates.
- Design: The design of your garage suite is also important. It is important to design a garage suite that is functional, comfortable, and appealing to potential tenants.
- Permits: Before you can build a garage suite, you will need to obtain the necessary permits from the City of Calgary. The permitting process can be complex, so it is important to work with a qualified builder who is familiar with the process.
- Construction costs: The cost of building a garage suite will vary depending on the size and complexity of the design. However, garage suites are generally less expensive to build than traditional homes.
- Rental rates: It is important to research rental rates for garage suites in your area before you start construction. This will help you to ensure that you are setting a competitive rental rate.
Once you have built your garage suite, it is important to properly manage it in order to maximize your profits. This includes:
- Finding tenants: There are a number of ways to find tenants for your garage suite. You can advertise online, in newspapers, or through a real estate agent.
- Screening tenants: It is important to screen tenants carefully before renting to them. This will help to minimize the risk of problems down the road.
- Collecting rent: It is important to collect rent on time and in full. You may want to consider hiring a property management company to help you with this task.
- Maintaining the property: It is important to maintain your garage suite in good condition. This includes making repairs promptly and keeping the property clean and tidy.
Owning a garage suite as an investment property can be a great way to generate additional income and build wealth. However, it is important to do your research and carefully consider all of the factors involved before you make a decision.
Here are some additional tips for investing in garage suites in Calgary:
- Choose a reputable builder: When choosing a builder to build your garage suite, be sure to choose one who is highly regarded and experienced in building garage suites.
- Get multiple quotes: Be sure to get multiple quotes from different builders before you make a decision. This will help you to get the best possible price.
- Be prepared for the unexpected: There may be unexpected costs associated with building and managing a garage suite. Be sure to have a contingency fund in place to cover these costs.
- Be patient: It may take some time to find tenants for your garage suite and to start generating income. Be patient and don't get discouraged.
Conclusion
Garage suites can be a great investment property in Calgary. By following the tips above, you can increase your chances of success.
Ready to build your Garage Suite or Secondary Suite in Calgary? Contact Sunset Homes today! We would love to learn more about your custom project and prepare a class 3 summary budget for you.
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