Have Someone Else Pay Off Your Mortgage

A smart homeowner knows that in today’s market, value isn’t just in the asthetics, it’s in in a layout that ensures  every dollar spent is a dollar earned. One of the latest features to tackle this very point is the ever-popular legal suite, offering that optional stream of income the day you’re handed the keys. Not completely sold on the idea just yet? Take a look how the finances play out with and without the alternative.

 The BreakdownJillSusan
Purchase Price$400,000$450,000
Down Payment (5%)$20,000$22,500
Mortgage Amortization25yrs25yrs
Mortage Interest rate3.25%3.25%
Monthly Mortgage Payment$1,851.80$2083.28
Rental Suite Income $0$1,100
Actual Monthly Payment$1,851.80$983.28
Annual Savings$0$10,422.24

Susan and Jill have purchased the exact same home; the only difference is that Susan has the optional basement suite. While she pays $2,500 more upfront and $200 more per month for her mortgage, she’s able to generate at least $1,100 a month from rental income, cutting her payments in half. Another way of looking at it is that after just six years of renting out her basement suite and making over $10,000 annually, Susan has paid off the initial expense for the upgrade. What’s more, if Susan rented out the suite for the entire period of the mortgage at $1,100 a month, she can make $270,000, in the form of a retirement nest egg, vacation home or future investment.

As a builder focused on the future needs of the homeowner, we’ve not only applied the basement suite concept to the line of our home designs, we’ve taken it even further. Our ‘Super Suite’ is a design that makes renting out your basement hassle-free. Imagine a separate meter for power, gas, and water, making consumption transparent from all sides and ease for a renter to put utilities in their name and control expenses.

Contact us today to learn more about our line of ‘Super Suites’.

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