Toronto’s real estate market has a number of distinctive traits and characteristics. One of the most discussed and influential of these attributes is the high demand for property. While this demand influences local real estate in a multitude of ways, it is arguably most visible in the costs of housing. In Toronto, average costs of for-sale and for-rent homes far exceed the national mean. 

These elevated costs, along with fluctuating interest rates and other broad economic factors have introduced new hurdles for those in pursuit of first time homeownership. As a result, many first time buyers in Toronto are embracing unique solutions to find entry into the market. 

One of these resolutions is the incorporation of secondary suites. 

In this blog, we will discuss secondary suites, their value, and how they may provide certain first time buyers with bolstered financial resources for covering the costs of their home. 

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Wish to know more about the costs of purchasing a home in Toronto? Consider these related resources. 

• How Toronto’s New MLTT is Impacting Real Estate
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Defining Secondary Suites 

Secondary suites refer to a portion of a home or property that serves as a separate living space. Per provincial guidelines, they are defined as a self-contained area with a private washroom, kitchen, and sleeping facilities. In Toronto, secondary suites can vary in size, layout, and style based on the property itself. 

In the majority of cases, secondary suites are leased by the homeowner to short or long term tenants in exchange for a market-informed rental fee. 

Note that secondary suites fall under a different classification than a spare room that is rented out to a tenant. However, this may also be a suitable avenue for first time buyers to create a financial cushion in covering their costs of housing. 

Uncertain on how to best approach the market? Navigate the buying process with grace using these four tips.

Value For First Time Buyers

Put simply, adding a secondary suite to one’s recently acquired home, or alternatively, purchasing a property with an existing unit allows first time buyers to earn passive, quality income which can then be allocated towards their mortgage costs. 

As one of the fastest-growing cities in North America, the demand for rental properties in Toronto is as remarkable as it is reliable. With average rents escalating on a month-by-month basis, secondary suites make a wise investment – paying dividends in the short and long term. 

Of course, any buyer or homeowner can reap the advantages of adding a secondary suite to their property. However, given the escalating costs of real estate, first time buyers may find this solution distinctly beneficial based on their financial standing. Further, younger home buyers typically have greater flexibility in their lifestyle and housing needs – this makes the prospect of dedicating a portion of their home to be used as a secondary suite less cumbersome. 

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Eager to discover the perfect property for you? Explore these related readings from our blog. 

• Finding Certainty in an Uncertain Market
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• How to Succeed With a Strategic Home-Buying Process

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An Extraordinary Asset

In addition to the potential for generating ongoing income, secondary suites also make an exceptional contribution to your home’s value long term. In Toronto, the property itself is often a homeowner’s largest financial asset. With that in mind, certain upgrades to the home can greatly influence its resale value. 

Secondary suites are a prime example of this type of upgrade. Not only do they allow homeowners to access a stream of impressive recurring income, but they also greatly elevate the equity built into the property. When the time comes to sell your first home and move up to something larger, the inclusion of a secondary suite will amplify and enhance interest from potential buyers. 

Finding the Perfect Property

While Toronto’s real estate landscape may be competitive, complex, and ever-evolving, Armin Group is your path to a low-stress home purchase. 

In addition to sourcing the best property for your budget, we can also offer refined guidance about any ROI-focused upgrades you may wish to make – including a secondary suite. 

While advantageous, secondary suites entail a number of regulatory, economic, and logistical variables. Our adaptive expertise helps you bypass potential pitfalls to ensure a low-stress, high-return investment. 

Seeking a seamless and strategic home purchase? As distinguished leaders in Toronto real estate, Armin Group can help you make a remarkable investment. Send us an email or call our team at 416.960.9995 to begin your journey.