Are you looking for a duplex for sale?
Here are four reasons why I love duplexes!
Reason number one is affordability. Having basement rental income makes it easier to afford a freehold home in the city of Toronto. Here’s an example: Every five hundred dollars of rental income will carry a hundred thousand dollars of a mortgage payment. If you’re getting $1200 to $1250 a month from your basement suite, that will carry a $250,000 mortgage.
The second reason is duplexes will attract buyers. Here are two examples of of why they do.
It will attract first time home buyers who will need that basement income to afford and qualify for that specific house.
It will attract move-up buyers from the condo space so somebody who is living in a condo downtown and they want to buy a freehold home in the City of Toronto - having that rental income coming out of the basement will make it easier for them to qualify in buying that specific house.
Having more buyers attracted to your specific property creates more demand which is good from a seller’s perspective.
Having rental income coming in every month is just like having a pension payment on a monthly basis and that gives you as a buyer or as a homeowner that safety net. Getting another $1250 a month could make a difference to your financial situation on a monthly basis.
If you take $1250 a month, which is $15,000 a year, which is $75,000 over five years - you take that money and put it as a pre-payment or as a lump sum payment on your mortgage. Imagine what paying $75,000 will do paying down or paying off your mortgage. It will help you achieve that financial freedom a lot faster and at the end of the day who does not want to be mortgage free.