Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Are two-family homes a good investment in Saskatoon?

A two-family home can be a solid Saskatoon investment, but only when both units are legal. The City of Saskatoon requires a building permit for a secondary suite before a lender or appraiser will count that unit's rental income, so an unpermitted second unit adds far less value than a permitted one with the same finish.

Financing and rules run through The Residential Tenancies Act, 2006 for whatever tenancy is already in place, and a buyer inherits the leases and rent levels that come with the building, so a below-market rent locked in for another year is effectively part of what's being purchased alongside the property itself.

Cash flow needs a real budget behind it, not a rough guess. Twelve months of operating expenses, a realistic vacancy allowance, a home inspection typically $400 to $600, and legal fees of $800 to $1,500 to close through a Saskatchewan lawyer all belong in the numbers before an offer goes in.

The deferred maintenance and unpermitted work on an older two-family home is exactly what public records miss, which is where Joel Dyck's hand-reviewed valuation earns its keep. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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