Where to Buy
Income suites really shine in an urban environment and in cities with colleges and universities. Homes with rental suites always sell for more in a university town – that’s where I started my income property investments, and I still own a large number of houses in these areas.
In suburban areas, income suites aren’t quite as popular as in the big city, although they can do well there too. But not every market is good for rental properties. Homes in very high-end areas are likely to feature “nanny” suites instead of rental accommodations. And if you live in an area where there is high unemployment and poor public transportation, the potential to rent out an income suite in your home may be limited.
Things to Look For
When it comes to finding a location there are a few things I suggest you look for.
- Public transportation
- Highways access
A quick note: while having good hospitals and schools in the neighbourhood is a good indicator of value, try not to purchase a property right next to either one. The noise and traffic can actually lower the property value a little bit.
Can’t afford the neighbourhood you want? Be on the lookout for areas where there are signs of improvement to the infrastructure. Road construction, buildings going up – these kinds of things can indicate that improvements are being made and the neighbourhood is on the rise.
Next Article: Part 3 – Financial Feasibility
Read more about Income Suites