What is a Laneway House?

Laneway houses, also referred to as garden suites, granny suites, or guest houses, are detached secondary homes situated somewhere on the property, usually towards the back of the yard towards an alley or ‘laneway’, hence the name.

They are smaller, ‘mini’ houses that can usually accommodate no more than two people and are often equipped with everything that comes with a standard-sized house including a full bathroom, laundry facilities, and a small yard. Some might be classified as ‘bachelor’ suites, but most will include a private bedroom. Laneway houses have their own private, separate entrance.

Many homeowners are making room in their yards for laneway houses, and here are 4 good reasons why you might want to consider it too.

• Increased Resale Value

Adding a laneway house to your property will cost, on average, between $200,000 and $300,000. That’s no small number, but the resale value added to your property with this investment will payout when it comes time to sell. Not only that, you may be able to sell your laneway house or place it under a strata title and still keep your home depending on where you live.

• Additional Space for Guests

A laneway house is a convenient option for family visiting from out of town. If you aim to make some additional income, registering and listing it as an Air BNB for guests is another great option to make revenue.

• Provides Space for Aging Parents, Kids, or Caregivers

This is an especially attractive feature given everything that’s happened over the past two years with Covid-19. Adult children of senior parents are reluctant to place their aging parents in old age care homes and such facilities and are opting to move grandparents in with them. Additionally, many students are also opting for online education to avoid living in high-dense student housing where the risk of an outbreak is higher. A laneway house provides a private and comfortable living arrangement alleviating some of the pressure that comes with living in a crowded house.

• Additional Income

Needless to mention, additional income is the main reason why laneway houses have become so popular in recent years. Renting out a laneway house provides the stable passive income from renters without having to share space with them which provides to be a major perk for landlords with kids and pets. Laneway houses are a great way to increase density while preserving the look of a neighbourhood. They provide to be a very attractive housing solution for single professionals who prefer living arrangements without roommates in apartments and basements.

dreamville Custom Homes is one of the leading laneway house builders in Vancouver. They will expertly guide you through every step of the process, from planning to design. Click here to see some of their work and set up an appointment with them today.

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Countless families are confronted with these exact situations every day, and the solution most often either requires a major renovation or a laneway house builder in Richmond to achieve. This then begs the question, when you need extra space, what is the smartest investment choice – a basement conversion or a laneway house?

Whether you currently own a home with the potential for an extension, renovation, or laneway house, or are looking for a new home with the possibility of building later, here are a few factors to consider.

Laneway House: Pros and Cons

Demand for laneway house builders has been exploding across Canada, and it all started in Vancouver. A laneway house offers homeowners some distinct advantages over basement suites, and laneway house builders in Richmond are increasingly in demand, where basements are unusual.

Pro: Increase the Value of Your Property

Laneway houses provide the potential for homeowners to offset some of their mortgage costs, which is a huge benefit in an expensive housing market like Richmond. It has been estimated that having a laneway home can increase the resale value of your home by over a hundred thousand dollars.

Pro: Higher Income Potential

A 2-bedroom laneway house in Richmond can fetch as much as $2,500 a month in rental income, nearly double the going rate for a 2-bedroom basement suite.

Pro: More Privacy

Laneway houses allow homeowners to keep family nearby or earn rental income without sharing their home. For many, this is the single most significant factor pushing homeowners towards laneway house builders in Richmond – the ability to benefit from the added space without sacrificing privacy.

Con: Loss of Outdoor Space

Laneway homes take up less room than you may think, but you will still be losing some of your outdoor space. Laneway house builders in Richmond can help you choose a floor plan and design that optimizes your laneway home while minimizing the impact on your available outdoor space.

Con: More Expensive to Build

The average laneway house costs between $200,000-$300,000 to build, compared to approximately $60,000-$90,000 for a complete basement suite conversion.

Basement Suite: Pros and Cons

Basement suites offer homeowners with limited outdoor space or smaller budgets the opportunity to benefit from the additional space without having to build a laneway home. There are several advantages to income suites, but also some drawbacks to consider.

Pro: Less Expensive

Basement suites are significantly less expensive to build, with the typical legal suite costing around $60,000 depending on the existing structure and the finishes you choose.

Pro: Saves Outdoor Space

Because basement suites use the space inside your home, you are not losing any of your outdoor space. However, you are sacrificing indoor space, which could potentially be an issue later for growing families.

Con: Less Privacy

Some homeowners are wary of sharing their space with a basement tenant. Just as it is nearly impossible to completely soundproof a condo, even with a well-built, legal suite it is difficult to insulate from all noise transfer.

Con: Less Rent Potential

The rental income for a 2-bedroom basement suite in Richmond is between $1,200-$1,500, which is about half the rental potential from a similar-sized laneway house.

Also Read: How A Laneway Home Can Help Maximize Your Home’s Potential

When deciding between a laneway home or a basement suite, it’s important to consider your budget and weigh your current and future needs. Generally, laneway houses in Richmond provide homeowners with the privacy and income they want now, with the flexibility they may need later.

The post Laneway House or Basement Suite: Which is the Better Investment? appeared first on Dreamville Homes.