Unlocking the Potential of Secondary and Backyard Suites
Are you looking to make some extra cash from your property? With up to $25,000 in forgivable loans on the table, it's never been easier to invest in a secondary or backyard suite in Halifax, NS. This pilot program has $8 million in funding spread over three years and aims to facilitate the addition of up to 300 new units across Nova Scotia.
Cost Implications: Tiny Home vs. New Construction Before jumping in, let's talk numbers. A 900-square-foot turnkey tiny home will set you back around $284,000. But here's the catch: the cost per square foot for a tiny home mirrors that of new construction regular build. If you’re already contemplating building from scratch, this option could provide a lucrative and affordable alternative.
Qualifications: No Wheels, Size Matters While it might sound quirky, your tiny home can’t have wheels if you're looking to get a mortgage. Moreover, size does matter. Your new unit has to be at least 400 square feet to qualify for financing. And don't forget the essentials: year-round access to power, water, and heat, plus a fully-equipped kitchen and bathroom.
Who Can Rent Your Suite? Once your unit is up and running, who can you rent it to? Tenants must meet certain criteria:
- Their income must be below the household income limit for the area
- Parent of the homeowner, aged 65 or older
- Adult child of a senior homeowner
Navigating the Neighborhood Approval Maze. This is a biggie. Before you break ground, check if your neighborhood is approved for secondary or backyard suites. Don't assume that all subdivisions are open for business. Approval usually takes about two weeks, so plan accordingly.
Make Your Property Work for You Ready to dive into the world of secondary and backyard suites? With up to $25,000 in forgivable loans, stringent but reasonable mortgage qualifications, and precise tenant restrictions, you're all set to make your property work for you!