If you're considering renovating your Edmonton home, adding a secondary suite can be a smart move. It not only enhances your living space but also opens up opportunities for rental income. Before you dive into the renovation adventure, let's break down some key aspects.

Costs

Renovation costs can vary, but it's essential to budget for both the construction and potential hidden expenses. On average, expect to invest $50,000+, but this can go up depending on the extent of the changes needed.

Permits

Edmonton has specific regulations for secondary suites. Before you start knocking down walls, check with the city to ensure you're compliant. Permits are required, covering safety and zoning regulations. It's a crucial step to avoid issues down the road. You can visit the official City of Edmonton - Secondary Suites page, with information on permits, guidelines and regulations for suites in Edmonton.

Things to be Aware of

Consider the existing layout of your home and how the addition will impact it. Plumbing and electrical systems might need adjustments. Also, think about the logistics of creating a separate entrance for the suite.

Potential Pitfalls

Renovations can uncover surprises. Be prepared for unexpected challenges, like outdated wiring or plumbing issues. Having a contingency fund will help you navigate these bumps in the road without derailing your project.

Benefits

Adding a secondary suite comes with perks. Beyond extra income from renting it out, it can increase your property value. The additional living space can also make your home more attractive to potential buyers if you decide to sell in the future.

Other Considerations

Think about the type of tenant you want to attract and design the suite accordingly. Also, keep in mind that managing a rental property comes with responsibilities, so be ready to take on the role of a landlord.

In a nutshell, renovating to add a secondary suite in Edmonton can be a game-changer. Just be sure to do your homework, secure the necessary permits, and have a realistic budget in place. It's an investment that can pay off both now and in the future.

Here are a couple more resources that may help:

Alberta - Secondary suites - Building codes

RenovationFind - What is Needed to Build a Legal Secondary Suite in Edmonton

Happy renovating!
Jason

(NC) An estimated three million Canadians have one, and they have emerged as the single largest contributor to the growth of household debt in Canada.

Yet many consumers do not appear to fully understand how they work.

No, we’re not talking about credit cards or car loans. We’re talking about home equity lines of credit or HELOCs.

According to a 2019 survey by the Financial Consumer Agency of Canada, many people appear to lack awareness of the terms and conditions of this widely sold financial product, exposing them to the risk of over-borrowing, carrying debt for extended periods and uninformed decision-making.

HELOCs are a secured form of revolving credit. The lender uses your home as a guarantee that you'll pay back the money you borrow. And, as you pay your HELOC down, you can borrow it again, up to a maximum credit limit.

Most major financial institutions offer them with a mortgage as a combined product, which is sometimes called a readvanceable mortgage. Many use them for renovations, debt consolidation, vehicle purchases and day-to-day expenses.

When used responsibly, HELOCs can benefit consumers through low interest rates, convenient access to funds and flexible repayment terms.

Unfortunately, the convenient features of HELOCs can encourage consumers to add too much to their debt load.

In fact, 27 per cent of those who responded to FCAC’s survey said they make mainly interest-only payments on their HELOCs. Considering that, on average, Canadians owe about $65,000 on their HELOCs, this means many homeowners end up carrying debt for long periods.

So, if you have a home equity line of credit or are considering getting one, you need to ask yourself:

• Would a HELOC tempt you to use your home like an ATM?
• Could you still afford HELOC payments if you lose your job or interest rates go up?
• Are you prepared to stick to a plan to pay it off fully, and avoid continually borrowing against your home equity?

Those are just some of the questions to consider before borrowing money that will be secured by your home equity.