cost of buying and owning a home in British Columbia is so high that
about half of first-time-homebuyers are looking for a property with a
rental unit to cut costs, according to a new survey.
The strong interest is likely a reaction to the average price for a
home in Vancouver, which is up 25.7% year-over-year to reach $831,555.
Some 56% of residents in the province are looking for a home with a
rental unit, according to the 2011 TD Canada Trust First Time
“Taking in a tenant can be an effective way to supplement your income
and pay off your mortgage faster,” said Barry Rathburn, manager of
residential mortgages for TD Canada Trust.
A vast majority, about 85% of first homebuyers in the survey, think a
rental unit will generate $500 to $1,000 a month, and 67% said the
extra income will go towards paying their mortgage.
The report showed B.C. first-time homebuyers have also been saving
longer – 57% have been saving for three years or more, compared to 47%
nationally. A greater number of B.C. first-time homebuyers need a
mortgage for their purchase as well – 93% versus 87% nationally.
Rathburn suggested those first-time homebuyers considering a home with a rental unit choose a mortgage with flexible options.
“These products allow you to pay more towards your mortgage when you
can afford to and give you the peace of mind of knowing that if
something changed financially (for instance, your tenant moved out
during the same month that your furnace broke down), you could miss
payments with no penalty,” he said.