'Suite' Deal for Home Owners

[dumbandhappy]

I'm new here and I put this under the wrong topic at the start. :127:

I want to buy a house and put a suite in.
Can I use what I think I can get from rent to get a mortgage?

Changes to the new zoning bylaw will also allow secondary suites to be created within existing single-family dwellings throughout the city, rather than only in designated ‘s’ zones.

‘This strategy will help provide affordable housing in our community with minimal impact to neighbourhoods,’ says Director of Land Use Management Shelley Gambacort.

Thanks.

http://www.castanet.net/edition/news-st ... .htm#76753

:sunshine:

[Bsuds]

According to my ex Banker wife, only if you have a signed lease from someone who will move in and then the bank will only use 50% of the amount as income.

In other words "good luck with that"

[NewAge]

Dumbandhappy: it depends on each bank and how much downpayment you have with respect to to the % of rental income your allowed to use towards adding to your income for your purchase.
Each bank has their own guidelines

email removed/Trip

[grammafreddy]

My bank will allow 90% of the rental income.

[dumbandhappy]

Thanks you guys,

only if you have a signed lease from someone who will move in"

What about before buying a house and renovating?
Do I still need a 'partner' to sign a lease for a suite beforre I buy?
Would that work if the house has no suite?
I would have a good downpayment.
I don't want to look to stupid when I go in to talk. :2305:

Thanks again

:sunshine:

[-fluffy-]

I don't want to look to stupid when I go in to talk.

I think you might find that any banker/lender would appreciate the fact that you are asking these questions. It's would be a good idea to go right to the source here and speak with a lender about your options. They can point out some stuff that you might be missing, like if you are intending to renovate to install the suite, how long would it take to pay off the costs of the reno? With secondary suites there will be code requirements that can run up a reno bill pretty quickly. Still, it is the wave of the future. It's pretty much a given that you will need some sort of "mortgage helper" if you're getting into the game in this day and age.

[pattergrub]

just my opinion but anything with a suite is off my list of potential purchases!!

[dumbandhappy]

Thanks.

"mortgage helper".

Good one fluffy :dyinglaughing:

The article says all of Kelowna so I would like to by a house near the airport or somewhere nice and new where I could find a 'mortgage helper.' I could do the reno's myself because I've done all the trades stuff in houses before.

Not saying me and my 'helper' would be doing a duper or anything like that wink-wink-nudge-nudge

How about up where there will be people working on that new Kelowna Mountain thing. That's a nice neborhood and I hear it could be a good thing.

just my opinion but anything with a suite is off my list of potential purchases!!

Why? Please.

Thanks
:sunshine:

[pattergrub]

I am a grown man - why would i want a suite with tenants in it?? if i wanted a condo or apartment that is where i would be - a suite defeats the whole purpose of owning a house in my opinion. if you cant afford the mortgage without it then should not be there to begin with

[-fluffy-]

... if you cant afford the mortgage without it then should not be there to begin with

That's an increasingly outdated line of thought. My son has been living in Vancouver with his gal for a few years now and for the most part they have inhabited basement suites. Speaking with their various landlords they have found that most of them would not be homeowners were it not for the extra income a rental suite provides.

With the price of entry into home ownership these days a rental suite sounds like an elegant solution to both the owners' and the tenant's needs.

[pattergrub]

plain and simple if you need the help you should not be there - what happens if tenants move and you cant afford the mortgage? some people just cant afford a house plain and simple, or should be in a cheaper one

[-fluffy-]

The "cheaper" ones are $300K these days. Kind of daunting for first time buyers. Even with a down-payment of $50K, a house at that price would take an income in the $65K range to support, or two incomes in the $35K range. I'm just saying that the challenges facing first time buyers in today's market aren't the same that folks faced a few short years ago.

[-fluffy-]

...what happens if tenants move and you cant afford the mortgage?

What happens if you lose your job and you don't have rental income to fall back on? What if you have a debilitating accident? Life is full of risks, all of which should be weighed. I still think that secondary suites are a good idea for both landlords and tenants.

[dumbandhappy]

people just cant afford a house plain and simple, or should be in a cheaper one

Yeah. I get that and I seen people who did get in trouble because the wife lost her job and other stuff.

Sorry, but I had a condo fI got from inheritance money and sold it and got the money out. I hated it with the fees and the dictators on the strata and the special assesments and stuff that kept coming up that I couldn't control or work on myself for sweat equity.

I would love to have a house and take care of it inside and out. But where is a cheap house here that's nice and in a nice neborhood that wouldn't cost a lot to renovate except for a suite so that I could be happy with it?

Sorry I'm new here, and doing okay finacially so far.

Next question is going to be where is the cheapest liquor store sheeesh.

Thanks
:sunshine:

[-fluffy-]

Next question is going to be where is the cheapest liquor store sheeesh.

Liquor stores are a usually a safe buy if you get a decent neighbourhood, just be careful when you chose your tenants.