Chauncey Birch by the laneway home he built in Toronto’s Cabbagetown neighbourhood, on March 8.Fred Lum/The Globe and Mail
In November, 2018, Chauncey Birch was scoping out a fixer-upper in Toronto’s Cabbagetown neighbourhood to buy, renovate and then rent out. He came across an outdated four-bed, three-bath duplex sitting on a lot that was 63 metres deep. But it wasn’t until he spoke with the architect who would oversee its renovation that Mr. Birch realized he could also build a laneway suite.
“After looking at the size of the property, its location with a laneway and the ability to fit a laneway suite in that space, the architect could tell we had met the preliminary parameters,” Mr. Birch explains.
He chose to build a three-bed, three-bath home with a basement and carport in the hopes of appealing to a family as future tenants. “I saw the ability to add that much space – in essence, a small home on an existing property,” says Mr. Birch, who expressed an interest in the smart densification of cities and reuse of existing land.
Mr. Birch is one of a growing number of property owners in Canada that are building secondary homes in their backyards. These structures go by many names, depending on the city where they’re located: granny flat, laneway home, backyard suite or accessory dwelling units.
The City of Toronto passed a bylaw in the summer of 2018 making it easier for laneway suites to be built. And in Edmonton, where they’re known as garden suites, similar bylaws were passed in 2017.
Mr. Birch chose to build a three-bed, three-bath home with a basement and carport in the hopes of appealing to a family as future tenants.Fred Lum/The Globe and Mail
“People who are looking to build for rental make up about half of the suites that are built,” Mr. Fong explains. “The other half are being built for an aging parent, or it could be a child who they want to keep close. We’ve had a lot of families with children with physical or mental disabilities. They can maintain their independence, but they do need extra support.”
Mr. Fong says that the construction process, and financing of the new builds, are common hurdles for those looking at adding garden suites. “They can be a pretty expensive development,” explains Mr. Fong, who estimates the cost of construction in Edmonton ranges from $200,000 to $400,000. In Calgary, that price can reach $600,000 or more.
And in Toronto, laneway projects start around $400,000 and can cost upward of $700,000, which is what Mr. Birch spent building his three-level suite. The laneway build added 20 per cent to the loan that Mr. Birch sought out from a private lender to complete both the main house renovations and laneway construction. He’s now renting out the laneway unit for $5,500 a month, but his motivations for the build aren’t strictly about the income.
“The rent from the laneway suite has been beneficial, but not a windfall,” he says. But Mr. Birch believes that he’ll see greater benefit once he’s ready to sell the property. “Perhaps at the time you sell, the return on investment could yield much larger returns that allow you to climb the property ladder more aggressively.”
Mr. Birch believes that he’ll see greater benefit once he’s ready to sell the property.Fred Lum/The Globe and Mail
Linda Hayes, a chartered accountant based in Edmonton and Belize, constructed her first garden suite on an investment property in 2017. She’s since built five of them in the city.
All of Ms. Hayes’s garden suites were built as part of brand-new home projects, so she was able to secure a regular mortgage to fund the construction of both structures. “You can also use the equity in your current home to pay for it through a HELOC,” she says, referring to a home equity line of credit. Another option for those buying homes to build a laneway suite is securing a “purchase plus improvement” mortgage to borrow the cost of renovations, in addition to the price of the existing home.
Backyard-suite builders should also keep in mind that adding a garden suite adds value to your property and therefore increases your taxes. However, property taxes and some other costs can be offset by tax deductions that landlords can claim against rental income.
“For rental properties, you get deductions for the expenses related specifically to the rental suite,” explains Ms. Hayes. “Items like the additional property taxes, utilities, interest on your HELOC, advertising and repairs are some examples of deductions.”
New federal tax credits for 2023 also provide relief for some garden-home builders housing family members. The Multigenerational Home Renovation Tax Credit provides a 15-per-cent refundable tax credit to assist with renovation costs up to $50,000 for a secondary unit with a private entrance, kitchen and bathroom. “But to be eligible, the resident of the unit must be a family member who is a senior or an adult with a disability,” Ms. Hayes explains.
She also points to the GST/HST New Residential Rental Property Rebate, which refunds part of the GST paid on a laneway housing project. “The rules on this are complex, so it’s best to work with an accountant,” Ms. Hayes says.
The City of Toronto passed a bylaw in the summer of 2018 making it easier for laneway suites to be built.Fred Lum/The Globe and Mail
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
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