Depends on if self managed or you hire out (10-15% premium) plus the size of build. There’s a substantial fixed cost regardless of the size so for smaller builds the cost per square foot is drastically higher.
@@ElevateRealtyCa : I really don't see any benefits at all of building a laneway suite (other than the obvious one being that your tenant has their own private entrance. Your services have to be attached to the primary house, your address is attached to the primary house, you cannot subdivide in either case. Under Toronto's new housing policy for 4 plexes on a property currently zoned R1, you can still not sub-divide. It is easier, both permit wise and cost-wise to build a one bedroom garden suite, which would also be exempt from Toronto development fees. Spending $400,000.00 to build the atypical laneway suite, only makes sense because of Toronto's ridiculous rental market. The fixed costs and fees are also ridiculous, especially the development fees, which represent no actual cost to the city. Personally, the only ones benefiting from Toronto's changed housing policies are the future developers and the construction industry, no single family homeowners would benefit and with rent's that are geared to newly financed construction, being the highest, no renter's would benefit. Rents will not drop in Toronto, house prices will not drop in Toronto.
Value add actually lowers your over returns if done right since you aren’t just banking on appreciation and rental income. Downside risk is that you need the experience (to determine feasibility, suitability, and get it done on time and on budget) to effectively capture value add returns and higher cap rates.
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Would you build a laneway suite? Why or why not?
Such a great detailed video. Thanks for sharing. Eventually want to add something like this to our portfolio.
Glad it was helpful!
$3,000 a month for a laneway, to me at least, sounds so expensive.
Toronto is just so crazy with the rent man it's frustrating.
Why are laneway suites averaging out at $400 to $600 per square foot. That is really on the high side.
Depends on if self managed or you hire out (10-15% premium) plus the size of build. There’s a substantial fixed cost regardless of the size so for smaller builds the cost per square foot is drastically higher.
@@ElevateRealtyCa : I really don't see any benefits at all of building a laneway suite (other than the obvious one being that your tenant has their own private entrance. Your services have to be attached to the primary house, your address is attached to the primary house, you cannot subdivide in either case. Under Toronto's new housing policy for 4 plexes on a property currently zoned R1, you can still not sub-divide. It is easier, both permit wise and cost-wise to build a one bedroom garden suite, which would also be exempt from Toronto development fees.
Spending $400,000.00 to build the atypical laneway suite, only makes sense because of Toronto's ridiculous rental market.
The fixed costs and fees are also ridiculous, especially the development fees, which represent no actual cost to the city. Personally, the only ones benefiting from Toronto's changed housing policies are the future developers and the construction industry, no single family homeowners would benefit and with rent's that are geared to newly financed construction, being the highest, no renter's would benefit. Rents will not drop in Toronto, house prices will not drop in Toronto.
Love the kitchen!! Where is it from?
It was custom built!
Is it possible to sell these laneway suits separately from the main house?
You would have to condo it. It's going to cost $$$$ but apparently it is possible and someone did it just a few months back.
What are some of the downside risks? Sounds like a high stake game 😮
Value add actually lowers your over returns if done right since you aren’t just banking on appreciation and rental income. Downside risk is that you need the experience (to determine feasibility, suitability, and get it done on time and on budget) to effectively capture value add returns and higher cap rates.
Not very pretty! Look like a container! Terrible architecture!