Exploring the Benefits and Costs of Garage and Basement Suites

With the recent news on May 14, 2024, after listening to Calgaryians in the largest public hearing in Calgary’s history, City Council voted to approve citywide rezoning with amendments. It’s never been easier to get a permit for a legal suite. While we still strongly recommend applying with an experienced company to ensure a smooth process for permits and building, there are now more opportunities for homeowners looking to expand their properties for additional income or growing families.

In this blog post, we will explore the two main options available to homeowners: garage suites and basement suites. We’ll discuss their benefits and drawbacks, helping you make an informed decision for your next home improvement project.

Benefits of a Garage Suite

• Preserve Basement Space: By opting for a garage suite, homeowners can keep their basements for personal use, which can be appealing for future resale. This option allows the main dwelling owners to enjoy their basement space while still benefiting from rental income.
• Noise Reduction: A garage suite can reduce noise transmission issues often associated with basement suites. Homeowners can enjoy the quiet of their main house while generating additional income from the garage suite.
  

  

• Flexibility for Family Growth: Garage suites offer flexibility for growing families. You can move some family members into the suite, providing additional living space without sacrificing the main house’s comfort.
• Higher Rental Income: From an investment perspective, garage suites can significantly increase rental income. For example, a house without a basement might rent for $2,500, while a house with a finished basement can rent for $3,000 to $3,500. On top of this, renting out a garage suite can bring in an additional $1,500, maximizing your property’s earning potential.

Benefits of a Basement Suite

• Lower Initial Costs: Building a basement suite generally involves much lower initial costs, making it a more affordable option. This means lower borrowing costs as well.
• Easier Financing: Home improvement lenders often cap loans at $100,000, which is typically sufficient for a full legal basement suite. This makes it easier to secure the necessary financing.
• Keep Your Backyard Open to More Sun: A garage suite, being on top of the garage, can make your property look bigger and might block some of the natural view or sunshine, reducing the enjoyment of your backyard space.
• Quicker Build Time: Basement suites usually take less time to build, meaning you can start generating rental income sooner.

Cost Comparison

• Garage Suites: The cost of building a garage suite can vary widely based on size and finishes. Expect to spend between $225,000 to $325,000, or approximately $1,300 to $1,900 per month. Variables include foundation type, utility connections, exterior details, and interior finishes. Additionally, costs can increase due to utilities that need to be run, and depending on the age of the house, the utilities might need to be updated or replaced altogether. Final prices are determined after design, finishes, and site inspections are finalized.
• Basement Suites: Costs for basement suites are more predictable and typically range from $60,000 to $110,000. Factors affecting cost include the size of the basement, availability of separate entrances, egress windows, and final finishes. Click here to go directyl to our cost calculator to find out what it cost to build a basement suite

Adding Value to Your Property

Investing in a garage or basement suite not only provides rental income but also adds significant value to your property. This increase in property value generates equity against which you can borrow additional funds to cover your expenses. This can lead to positive cash flow, making your investment even more beneficial in the long term.

Why Hire a Professional?

At Alta Home, we not only help you build the basement or garage suite of your dreams but also provide comprehensive information about zoning bylaws, what’s allowed, and what permits are needed to build your legal suite. We can assist with financing, architectural and engineering drawings, and securing permits. Our crews are experienced and equipped to handle all aspects of building a legal suite.

Conclusion

Deciding between a garage suite and a basement suite depends on your specific needs, budget, and long-term goals. Both options have their unique benefits and potential drawbacks. By understanding these aspects, you can make an informed decision and maximize the value of your property. At Alta Home, we’re here to guide you through every step of the process, ensuring a smooth and successful project.

Disclaimer

The numbers illustrated are examples only and will vary based on the specific area. We are not financial advisors, and this is not financial advice. Rather, these figures are intended to help you start planning your home improvement projects. Please seek professional advice before making financial decisions.