Cost & Return

Sample Laneway House scenario for: Construction / Financing / Rental

CONSTRUCTION:

Construction price for: 33’ Wide Lot – 1br. / 1 ba. + carport
HST (12%)
TOTAL		 169,000.00
20,280.00
189,280.00

The construction price includes:

  • Site survey
  • Our pre-approved plan design including engineering and architectural work
  • Building Permit
  • Demolition of existing structure
  • All services and costs
  • Construction of the Laneway Home
  • Our standard 2/5/10 Warranty
  • One year of maintenance as per agreement

This package is for a lot after we have inspected to make sure things can be carried out as a typical construction project. If we encounter a lot with difficulties, we will give you an estimate and perform the extra work on a cost + basis over the fixed price for the home.

FINANCING:

Loan Amount  -  4.39% with a 35 year amortization

Monthly Payment

*NOTE – Mortgage interest is 100% tax deductible when primary residence is used and proceeds are used to build a rental Laneway House.  First year mortgage interest is $8,400.00.  Depending on your tax bracket this could be up to $3,361.87 in tax savings. Please consult your Accountant.

 189,280.00

878.32

REBATES:

HST Rebate

HST Rebate after Laneway House is rented with 1 year lease

 8,400.00

3,042.00

RENTAL SCENARIO:

Estimated monthly rent

3% Vacancy

5% Maintenance

5% Est. Property Tax

Net Operating Income

Mortgage Payment

Positive Monthly Cash flow

 1,300.00

-39.00

-65.00

-65.00

1,131.00

-878.32

305.77

CONCLUSION:

Annual positive cash flow after expenses

Potential Tax Savings

Total annual potential positive cash flow

 3,669.24

3,361.87

7,031.11