Turning unused basement space into rental income a game-changing investment and lifestyle decision, says Ontario’s leading basement renovator
TORONTO, Aug. 2, 2017 /CNW/ – For homeowners and aspiring home owners caught in the perfect storm of soaring real estate prices, high mortgages, kids moving back home (or never leaving), and a precarious job market, Guy Solomon, President of Penguin Basements, a full-service basement renovation company, has some game-changing advice: convert your unused basement space into a ‘second suite’ that can generate extra income or living space.
Penguin’s Second Suite Solution, a sensible yet powerful strategy for building lasting wealth in an overheated real estate market, was inspired by Solomon’s friends and family who either couldn’t get into the market or were leveraged to the hilt because they did. “In both cases, it came down to underestimating the cost of home ownership. What looks like a straightforward, ‘upwardly mobile’ lifestyle decision can turn out to be more complex and expensive than it appears,” says Solomon, 31.
In an economic climate where one-quarter of Canadians have just $1,000 set aside for emergenciesand almost one million Canadians work at least two jobs, a Second Suite can help take the pressure off overextended homeowners by boosting their mortgage payments (or disposable income) by upwards of $900 a month (net), while increasing the long-term value of their home.
The Second Suite Solution also speaks to the trend of young adults living at home longer. According to Statistics Canada, 42 per cent of 20 to 29 year olds lived with their parents in 2011, versus 27 per cent in 1981. “A second suite helps families create space – and reduce awkward moments – for grown children who find themselves at home due to student debt, underemployment and/or skyrocketing rents,” Solomon says.
Attuned to the stresses and uncertainty that come with the decision to renovate, Penguin’s ‘mindful’ approach to the process informs everything from building materials to project methodology. Designed to combat worry and inefficiency at every turn, the company’s innovations include:
Financial Planning and Assistance To help address the financial implications of a second suite, Solomon designed and developed The Second Suite Solution Calculator, a tool that provides clients with a 360°understanding of the cost, revenue and resale implications of their investment. For qualified clients, Penguin can even help with financing.
A commitment to best-in-class materials Penguin mandates the use of mold-free, well-insulated and fire-rated materials and state of the art fixtures from brands like American Standard and Moen. “Our solutions require minimal service and repair and are meant to be long-term and sustainable. It doesn’t make economic or environmental sense to redo your finishes every 5, 10 or even 20 years,” Solomon says.
Client-centric process efficiencies Penguin takes homeowners from the pre-build, permit acquisition and materials selection phases right through to the end of construction with as few as five meetings versus the 18-24 required by typical contractors. Pre-engineering value into every aspect of its operation, Penguin offers a one-stop design centre and an online customer portal that keeps customers updated on every aspect of their build in real time. In addition to optimising the efforts of its labour force and reducing everyone’s transportation costs, the company’s efficiencies save the typical client between 125 and 150 hours of time over the course of the project.
Firm pricing, firm timelines and a tidy rate of return. A beautifully constructed basement apartment (without underpinning and a separate entrance) can be designed and built in 4-6 weeks, with minimal disruption to the principal residence, at a cost of between $50,000 to $75,000 – a fraction of what it will generate from a rental and resale perspective.
“Investing in the second suite solution, for the home you have or the home you want, will open up possibilities and opportunities that were not there before, increasing the value of your home and padding your savings along the way,” Solomon says.
Visit Penguin Basements for more information @ www.basementscanada.com or @penguinbasement
SOURCE Penguin Basements