House Hacking

Is House Hacking to Afford a Home Right for You

House hacking is a unique strategy that allows homeowners to afford a home. It is fast becoming the only way homeowners can afford homes these days. Homebuyers consider it to afford homes. Once they become homeowners, they become landlords. They do this by renting out portions of their homes to generate income. The income helps pay the mortgage and other expenses.

Buying a home is probably one of life’s largest transactions and homes are even more difficult to afford than usual these days. In the not-so-distant past, it was common for high school and college graduates to move out of their parents’ homes, and they did this easily. These days, this age group cannot afford to buy a home. Worse, once they moved out, Millenials and Gen Z sometimes need to move back in with parents.  Thus, house hacking is a great option for Millennials and Gen Z.

There are always pros and cons to any venture. To make sure this option is right for you, read further to learn the pros and cons.

House Hacking: Pros and Cons

The house hacking strategy can make homeownership more affordable but you should consider the pros and cons.

Pros

Best Mortgage Rate
If you plan on living in your unity, a multi-unit building purchase can get you the best mortgage rate.

Tax Breaks
Find out according to the Government of Canada, as a new property owner and landlord, you can receive great tax breaks.

Welcome to Homeownership
House hacking affords you a home, welcoming you to homeownership!

Building Equity
All the while you are building equity. Using rental income to pay down your mortgage increases your property’s value

Landlord Experience
Gain valuable landlord experience like tenant screening, rental contracts, building management, and housing maintenance repairs & property maintenance.

Cons

• Good landlording takes work. Make yourself familiar with your local landlord and tenant board rules and regulations.
• Giving up part of your living space.
• Living with or nearby tenants.
• Repair and maintenance headaches and costs.

So if you are a Millenial or Gen Z and can’t afford a home, house hacking may be right for you. If you’re considering house hacking as a way to buy a home, ask yourself, can I afford the home without the rental income and find out if renting allowed in your area. If you qualify, contact me for more infromation.