Hello everyone,
Me and my wife own a single detached bungalow (~1200 sq.ft) built in 1976 in Woodstock, ON. We have been living it for 2 years now. We purchased the house when the housing market was at its peak(high 700’s). We have 2 different entrances to get into our basement. The city of Woodstock has recently amended their by law that enables all the R1 zoning house to have 1 or 2 Additional residential units. We applied for a permit for 2 apartments in the basement (Unit 1:1 bed apartment & Unit 2: A 2 bed apartment )
The permit has been approved. We are also getting a forgiving loan of 30k for the duration of 10 years from the county for 1 unit if we rent out the 1-bed basement unit to a household with income less than 100k and at the rate defined by the city )(~1183+ utilities) for a 1 bed unit.
I think the 2 bed can easily be rented out for $1450 + utilities in our area.
About the basement: It's partially finished (drywalls and ceiling only) with no bathroom or kitchen.
Since it's a considerably smaller house, I am not sure if this would add significant value to the house if we sell it say 5 years down the line. We will be landlords for the first time in our life.
Estimates we are getting from the contractors to build in 2 legal units is between $110k-$150k. Given the scenario, does it make sense financially? My estimates say if I were to bring in the sub-trades myself I can get this project completed at about 80k.
Seeking feedback from the experts in the group here.
Thanks,
Chirag
