Buying a Home with a Separate Apartment? Here’s What you Need to Know

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After a year unlike any other, a new trend in home ownership has emerged: the rental unit (or “in-law” suite). The global pandemic plus rising real estate costs are causing homeowners to re-evaluate their living arrangements. Young adults are selling condos or giving up high-priced rental apartments and moving back in with their parents. Elderly parents are moving in with their adult children to avoid long-term care homes.  And, some homebuyers need to offset the cost of higher-priced homes.  

Whatever your reasons for needing additional living quarters in your new home, our real estate experts share what you need to know and what pitfalls to avoid.

As Mary Kay McCoy from Century 21 Dreams explains, many families are looking for larger homes to add a second master bedroom and expand main floor living space. “Where seniors are moving in, homeowners don’t want to put their parents in the basement,” explains Mary Kay. “They are looking at how they can convert the main level.” 

Homes with walkouts are extremely favourable as they provide a separate entrance and access to the backyard. Those with basement apartments are also popular. Whichever option you are exploring, you should do your research and order a pre-inspection. 

Why a pre-inspection?

Basement suites are required to be up to code, meaning they should meet fire and safety standards. These codes include egress windows for emergency exits (windows a person can fit through), so there are at least two exit points. Air quality can also be a problem in a basement if there is mould or radon present. Some companies can perform these checks during a pre-inspection, so be sure to include this in your request. With the competitive market discouraging offers with conditions, a pre-inspection can give you peace of mind and allow you to go in with a clean offer. 

Red flags

“Before visiting any homes with a realtor, check the local municipality building codes,” says Mary Kay. “All municipalities are different, and most have a checklist online if you visit their website.” For example, apartments with a separate kitchen must have proper venting for an oven. If a home advertises a rental unit, but there is no oven, that’s a red flag that the apartment is illegal. 

“Years ago, people died in basement apartments where there was faulty wiring or electrical problems,” says Sam McDadi from SAM MCDADI Real Estate Inc. “Ask to see permits, so you know the apartment is legal and safe.” Sam explains that buying a home with an illegal apartment can have dangerous consequences. And if neighbours report you to the bylaw office, you’ll be forced to remove the unit.

The in-law suite

The term in-law suite can describe any additional living space within a home. “An in-law suite is not necessarily a separate apartment,” explains Mary Kay. While there’s nothing inherently wrong with the in-law suite, be clear on how you want to use the space. If the suite is to be used by the family as extra living space (spare bedroom and sitting room, for example) and sharing the central kitchen, you are good to go. But if this is to be used as a rental apartment, it may not be meeting fire and safety regulations. A good realtor will help you do your due diligence to ensure the home meets your needs.

Take your time to do your research and make sure the home is suitable for your needs. Don’t make any assumptions based on what’s in the listing. Hire a reputable realtor who is familiar with the bylaws and will do their due diligence on your behalf.

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6 Ways To Make A Room Look Bigger

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Maybe you rent a small apartment in the city. Or maybe your forever home features smaller rooms. Instead of spending more money on a larger space or knocking down a wall, you can make a room feel larger with a mix of design and creativity. Maximize every inch of your space with these beginner and budget-friendly decorating tips.

HANG CURTAINS HIGH

Instead of mounting your curtain rods just above the top of your windows, move up about five to six inches higher. This will create length to the wall, giving off the impression that the ceiling is higher than it actually is. Be sure to use curtains that reach the floor to highlight this illusion.

BRING IN THE LIGHT

Darkness can be univiting and create the sense of a small space. Letting in a lot of natural light is a great way to make a room feel larger. Use sheer panels instead of opaque or light blocking curtains Choosing warming LED light bulbs for lamps and use overhead lighting to create the look of natural and comfortable light without being too bright or too dark.

PUT UP MIRRORS

Similar to windows, mirrors give the illusion of a larger space. Hanging a few, or even one, on your wall essentially doubles the space of the room in the reflection, adding dimension and depth. If your room has limited light, hang the mirror across from the window, projecting more natural light throughout the space from a new angle.

PAINT WITH LIGHT COLOURS

The colour of a room plays a large part in the illusion of size. When rooms are painted with darker colours, or even a patterned wallpaper, it can feel overwhelming and give off the feel of a smaller space. To maximize the size, painting with lighter colours, like white, grey, light blue, or beige projects a spacious feel. To bring in some colour, play with an accent wall, or try some throw pillows, blankets, and artwork to liven up the room.

UTILIZE BUILT-IN STORAGE

Built-in bookshelves or cabinets allow for maximum storage space and minimal clutter. If your home doesn’t already have this, you can build it yourself. Or, utilize furniture with hidden storage, such as ottomans, benches and coffee tables to help clear up clutter and add more space.

CHOOSE THE RIGHT RUG

Rugs provide not only comfort, but design and style, to a room. Size your rugs to each respective room to optimize the space. To create depth in a room, go for one large rug, leaving about 6 to 12 inches of space from the wall. For a room heavy in furniture, such as a bedroom or living room, use smaller rugs to break up the space, creating separate sections and areas.

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MARKET UPDATE – HAMILTON

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Four Exciting Features For The Ultimate Outdoor Kitchen

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Outdoor kitchens are on the rise in luxury real estate. As homeowners increasingly look to create their own private oasis in the backyard, a cooking space has become just as coveted as a sparkling swimming pool and spacious terrace where the whole family can spend time together. If you want an outdoor kitchen that leaves nothing to be desired, here are a few exciting features to include.

DELUXE GRILL

The grilling station is often the centrepiece of the outdoor kitchen and essential for any warm-weather gathering in the backyard, which is why many homeowners choose to invest in a high-end option. If you want the versatility to prepare everyone’s favourite dishes, a deluxe grill that’s equipped with multiple burners, a rotisserie and a smoker box will ensure successful barbecues all season long.

REFRIGERATION

When it comes to convenience, you simply can’t beat having your outdoor cooking area equipped with a refrigerator. This allows you to keep beverages, side dishes and any perishable ingredients nearby, avoiding the need to run back inside to the kitchen every time you need something. A sleek, stainless steel design is always a popular option to endure outdoor conditions without compromising on style.

PIZZA OVEN

If you want to mix up your menu and take a break from the grill, there’s nothing like a wood-burning pizza oven. With a wide variety of materials to choose from—such as natural stone, brick and clay, to name a few—you can get just the right aesthetic and elevate your outdoor kitchen to enjoy family pizza night on the patio.

BAR AREA

For those who like to sip a cocktail or craft beer while lounging in the backyard, a well-designed bar area is in order. In addition to a bar counter and stools, you may want to include a prep area for mixing drinks, as well as a built-in kegerator that allows you to keep your favourite beer on tap.

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How to navigate the current market if you’re a first-time homebuyer

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As housing prices soar to record levels, first-time homebuyers who are finally ready to make a move are feeling left out in the cold. Bidding wars, over-asking sale prices and an inflated market make it difficult for these buyers to break in. Are first-time buyers effectively shut out of the market? We asked two experts – a mortgage broker and a local real estate agent – to weigh in and give us their best advice and recommendations. Both agree that first-time homebuyers have a place in the market and can have a successful outcome if adequately prepared.

It’s About More Than Just Pre-Approval

Having your finances in order is more than just getting pre-approved. It’s also critical to be clear about what debt you already have and your credit score. Jason Woods (Dominion Lending Centres – TLC Mortgage Group) says it’s essential to work with a mortgage broker who asks the right questions and gets a complete picture of your financial situation. “Online mortgage calculators are not reliable because applicants can overlook information or enter the wrong numbers, making their pre-approval inaccurate,” Jason explains. “We need to understand if they have car loans, a student loan and what’s available for a down payment. We talk to them about closing costs, the initial deposit and making sure that money is readily available. We all need to be clear on what they can realistically afford, not just what’s on paper.” Jason also advises that buyers get their finances in order before they start house shopping.

Keep the Offer Clean

A clean offer means one without conditions. Luke O’Reilly of Royal LePage State Realty explains that many first-time homebuyers want to get an inspection or want to place a condition on financing. “Most offers won’t be successful with any conditions in this type of market,” explains Luke. “If the first-time homebuyers need peace of mind, they should consider paying for a pre-inspection.” Luke also explains that simple things like matching the seller’s closing date and not asking for additional inclusions can go a long way to presenting a successful offer. Working with a realtor who knows the neighbourhood and price that homes typically sell for makes a tremendous difference during the offer process. “In a multiple offer situation, buyers need to go in with their best price based on comparable sales,” explains Luke. “A realtor who knows the neighbourhood can better advise you on what to expect and at what price you are likely to win the bid.” It’s easy to get caught up in the moment and the pressure of a bidding war, so keeping a cool head and not extending yourself too far is a key strategy. Once an offer is accepted, a five percent deposit is required within 24 hours. First-time homebuyers may not be aware of this and need to ensure they have the money ready.

The Time is Now

While many first-time homebuyers may be tempted to wait until the market cools, it’s crucial to understand the market trends and how much correction to expect. Data published by Teranet (National Bank House Price Index) shows that despite slight fluctuations, the housing market across Canada has increased year-over-year for 12 straight years. Real estate often corrects slightly in a hot market, but prices rarely drop. “In April, the average price came down slightly, and homes are sitting a bit longer,” says Luke. “This is possibly due to more inventory or a slight increase in interest rates. There are fewer multiple offers and some indications that the market may be cooling slightly. It’s a great time to enter the market but keep in mind prices are still increasing overall.” Jason agrees and advises buyers not to wait. “The market may flatten out somewhat, but there’s no sign a crash is coming,” he says. “If you don’t get in now, it may be even harder in a year.”

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Top 5 Home Renos to Increase the Value of Your Home

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Many Canadians who are not in the market to sell are opting to renovate their homes instead. If you are thinking about a renovation this year, consider these suggestions from two of our local real estate experts to help you get the most bang for your buck while increasing your home’s value. 

Reisha Dass from RE/MAX Real Estate Centre described many of today’s homeowners as focused on comfort and maximizing space. This shift is not surprising considering the amount of time we are now spending at home. “We try to do it all from home now,” Reisha explains. “Work, schooling, exercise and relaxation are all done in our homes.” Under normal circumstances, the ongoing favourite renovations have been kitchens and bathrooms. But as Lynn Fee  of The Lynn Fee Team at Keller Williams Complete Realty Inc. explains, these days, it’s about creating space, indoors and outdoors. Lynn also points out the current supply problem for materials, like lumber. “Some contractors are also booked into next year, so this might be the year for DIY projects. A YouTube video and a little imagination can help you create a big impact.”

Fix the Simple Things

On the small-scale end of the spectrum, you can do inexpensive renovations to update your home to enjoy now or if you are planning to list soon. “The big theme is space,” says Lynn. “Start by purging the clutter and removing furniture that does not serve a clear purpose.” A fresh coat of paint is always a great way to freshen a room and remove any scuff marks or holes in the drywall. New fixtures, window coverings and replacing outdated hardware is another easy way to update your space.

Flooring

Consistently laid flooring throughout the home with smooth transitions is the way to go. Engineered hardwood is a popular choice, and many people can install it themselves by watching a video created by a professional. “Big, bold tiles are in this year,” says Reisha. “Plus, adding some punches of colour in the right places throughout the house is a great way to make your home fun and exciting.”

Kitchens & Bathrooms

“There’s nothing like gleaming new countertops and updated cabinetry and sinks,” says Lynn. “But, if a big project isn’t in the budget this year, consider repainting existing cabinets.” You can quickly obtain the appropriate paint and primer at a knowledgeable paint store to do this yourself or hire a handyperson who has experience.

Outdoor Living

As we continue to search for additional living space, moving outside in summer is a natural choice. With a covered area or gazebo, you can add a TV, built-in fireplace and even a bar. Hardscape features such as a stone wall, lawn ornaments, or a water feature give your outdoor living space a spectacular upgrade. Consider extending your patio to add seating space and look at ways to add shade. With so many of us spending time at home, the ability to spread out, even in a small backyard, is a bonus. “Outdoor lighting also adds a dramatic change to your home and creates a space you can use well into the evening,” adds Lynn. While inground pools have been a popular option since the onset of the pandemic, pool companies now have a waiting list of one to two years.

Basement Renovations and Rental Apartments

As always, basement renovations continue to be a popular home renovation. They not only increase your living space but can also be used as an office, rec room, classroom or basement apartment. “You may have elderly parents or adult children moving in with you or need the additional income,” explains Reisha. “Many homeowners are getting more creative about where to create this extra living space such as a loft over the garage.”

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Meet the Realtor: Albert Venditti

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Tell us a bit about your life before you started your real estate career. 

My early life through high school and university consisted of travelling the world and competing for Canada in the national and international stage.  I was on the Canadian National Team as an Olympic wrestler, and competed in Pan American Games, Mexico, the world championships, Bulgaria, and the Summer Olympics, Montreal. 

How long have you been working in real estate and how did you get started?

I am entering my 24th year as a licensed real estate agent, and have been in real estate most of my adult life after graduating. I was always interested in real estate and in my time off I would buy properties, do renovations, rent them or flip them. 

What is it that you love about this career and that makes you passionate about what you do?

What I love about my career is the thrill and excitement my clients get when they buy or sell their home. I am overcome with joy and a sense of accomplishment to see my client’s dreams come true. 

Is there a particular area you specialize in, either in terms of neighbourhoods, or types of homes, or perhaps the type of clients you like to work with?

I work with a wide range of clients from the first-time buyers, to the move up buyers, to the high-end buyers. People are People and my job is actually all about working with people.

In such a competitive market, with so many realtors, what do you offer your clients that you think makes a difference?

People often ask me what I do to get business? My answer is, “I service the hell out of them”. If you do a great job, people will always come back to you and send you referrals. I believe that giving the best quality professional expert service is the key to any business.

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MARKET UPDATE – HAMILTON

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Meet the Realtors: Krista & Ellen

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What attracted you both to this business and how did you get started? 

Ellen: I started selling real estate in 1978.  Prior to that I was a Registered Nurse. I found I loved helping people make decisions about their lifestyle, and even though it meant living on straight commission income, I carved out a life that actually was more rewarding for me.

Krista: Before I was in real estate, I worked as an investment accountant.  I find it so rewarding to be able to help people through the biggest purchase or sale of their lives, and to be rewarded with success based on how hard I work. 

You both had established real estate careers individually before you decided to work together as a team.  What was the motivation behind joining forces?

Ellen: I recognized Krista as a leader.  She was super accomplished in her own business and had the same caring style that I have towards my clients. I could not have chosen anyone else that I can depend on to give the exact same level of service I do.

Krista: It’s extremely difficult to take holidays when you are in this business – even just a day off ! I covered for Ellen one winter while she was away, and our methods were so well-aligned that we decided to continue the partnership. We both always want to provide the best service for our clients, and having access to both of us ensures that at all times. 

What is it that makes you so passionate about what you do?

Ellen: The fun of knowing the market so well, that it makes it so much easier to work with clients. After listing and selling in this area for 43 years, once you get to know what your client wants, we know where to go to find it.  

Krista: The satisfaction of guiding people through such a big decision. It can be very stressful, and there are so many items that people don’t consider simply because they’re not involved with this every day. 

Is there a particular area you specialize in, either in terms of neighbourhoods, or types of homes, or perhaps the type of clients you like to work with? 

We sell all types of homes, as well as new builds and condos. We mainly work the Hamilton area, especially Ancaster and Dundas. We buy and sell for families, their children, their parents and estates in all price ranges. 

You are recognized as top performers with Royal LePage.  In such a competitive market, with so many realtors, what do you offer your clients that you think makes a difference and contributes to your success? 

Experience, caring about our clients’ investment. We offer what each client needs, including movers, stagers, estate sale organizers or things as simple as packing boxes. We give people time to get their homes ready so they feel comfortable listing. We also make sure we listen to our buyers and sellers. Each day needs may change. This is all about our clients, not us. That is what creates success.  

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Mortgage Broker vs Mortgage Specialist: What’s the Difference?

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To most consumers, the terms “mortgage broker” and “mortgage specialist” would seem interchangeable – but they aren’t. As a potential homeowner and borrower, the differences are more important than you might think.

First and foremost, it is important to understand that mortgage brokers belong to an independent firm. This allows them unique access to rates and offers from various lenders (banks, credit unions, private lenders and alternative options). Conversely, a mortgage specialist is employed by a single lender and works to sell that particular institution’s products.

BENEFITS OF WORKING WITH A MORTGAGE BROKER

  1. MORTGAGE BROKERS WORK FOR YOU!

Unlike a mortgage specialist, who is paid by the bank to sell their products, a broker works for YOU! A broker works as a link between you and the lender; they filter through the offerings to find you the best rate and product. The best part? A mortgage broker’s services are FREE to the consumer! Brokers are paid by the lender of choice once the ideal mortgage product has been found. This means you get to utilize their expert advice and lender access at no cost!

  1. MORTGAGE BROKERS CARE FOR THEIR CLIENTS

Mortgage brokers care for their clients, not only because they work for YOU but also because most brokers are self-employed, and rely on referrals and repeat business. As a majority of their business is done through word-of-mouth, this results in the best experience for clients. Every mortgage broker is motivated to help you achieve your dream of home ownership!

  1. MORTGAGE BROKERS ARE LICENSED PROFESSIONALS!

It might surprise you to know that mortgage and bank specialists are not required to have any formal training. While some lenders do provide in-house training, this varies from the provincially regulated course that mortgage brokers are required to pass. Mortgage brokers also continue to maintain their education through license renewals and educational courses. As a result, a mortgage broker provides expert advice you can trust!

  1. MORTGAGE BROKERS HAVE GREATER ACCESS TO RATES

A mortgage broker is employed by an independent firm and has access to 90+ lenders, while a mortgage specialist can only access their particular lenders’ products. This can mean a big difference in rates and mortgage terms for homeowners! If you are looking at getting a mortgage with your bank (say Bank X), then your mortgage specialist can tell you exactly what Bank X offers. But, by seeking the advice of a mortgage broker, they can tell you what Bank X offers… as well as your options with Bank Y, Bank Z, Bank A, etc. When you are looking for the best mortgage product to fit your unique needs, more options to choose from just makes sense!

  1. MORTGAGE BROKERS FOCUS ON MORTGAGES

When it comes to mortgage brokers, all they do is mortgages; they live and breathe home ownership! Mortgage specialists and bank staff are often trained with a focus on cross-selling. While you may have booked an appointment to discuss a mortgage, many times they will focus on other bank products. This might include offering credit cards, insurance, RRSP’s, lines of credit, etc. This can sometimes be helpful, but many potential homeowners may find it overwhelming or pushy; especially when they are specifically looking for a single product – a mortgage.

  1. MORTGAGE BROKERS OFFER FLEXIBLE HOURS

Most banks don’t offer great business hours, which can make it hard to book an appointment with a specialist. As many mortgage brokers are self-employed, they are motivated to assist clients. This means they are often available for appointments outside of business hours such as evenings or weekends. This can be especially comforting to individuals who are new to the mortgage process and may have questions or concerns that they would prefer to have answered right away.

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