House Hacking in Oakville
Investing in a duplex or multi-family property in Oakville can significantly offset your housing costs, allow you to begin building your passive income streams, and make getting into real estate investing easier. You can buy a home for yourself and an investment property at the same time.
We can help you find homes for sale in Oakville that work for your house hacking plans, so contact us any time to get started. If you want to learn more about house hacking in Oakville, this is the post for you.
What is House Hacking?
House hacking has become a popular real estate strategy in recent years in a wide range of markets. It's a term that describes buying a home that will be both your primary residence and an income property.
In most cases, buyers looking to start house hacking will invest in a duplex, triplex, or other multi-family property (even something with a suited basement or mother-in-law's quarters on the property might qualify). The buyers will live in one unit, while renting out the other(s) to significantly offset or even cover the cost of the monthly mortgage payments.
This might be a long term strategy to make owning the home affordable, or it may be a way to get into the market temporarily, with future plans to move out and list both or all units for rent. House hacking is a financially savvy approach to real estate investment that enables homeowners to build equity, generate passive income, and accumulate wealth while enjoying the benefits of property ownership.
Benefits of House Hacking
The primary benefit of house hacking is the ability to generate rental income and offset the ongoing expenses of homeownership. By renting out one or more units in your duplex, you can offset mortgage costs and potentially live for free or at a reduced cost.
House hacking allows you to build equity in the property while tenants contribute to the mortgage. Over time, this can lead to significant wealth accumulation through property appreciation and mortgage paydown. By allowing your tenants to pay all or most of the mortgage, you are able to benefit from appreciation as your equity grows without investing much more than you did at the beginning.
One of the challenges of owning income properties is the property management factor. While some tenants simply pay their rent and need only basic maintenance from time to time, others may require much more work. House hacking provides an opportunity to gain hands-on experience in property management, and living on site often deters tenants from damaging the property, refusing to pay, or other nightmare scenarios. Dealing with tenants, handling maintenance, and managing the property can be valuable skills for future real estate endeavors.
While the cost to buy a multi-family property may be higher than buying a single family home (though not always the case), you may find it much easier to qualify for the mortgage. This is because lenders view a house hacking scenario as less of a risk.
Lenders often consider rental income when qualifying borrowers for a mortgage on a multi-family property. The potential rental income from additional units can enhance your debt-to-income ratio, making it easier to qualify for a loan.
Some mortgage programs allow for lower down payments on multi-family properties compared to larger investment properties. This can make it more feasible for individuals with limited upfront capital to enter the real estate market.
In some cases, lenders may be more willing to extend higher loan limits for multi-family properties compared to single-family homes. This can provide additional financing flexibility for house hackers.
Before you begin the search for your investment property in Oakville, talk with a few lenders about your options.
Where to Find Multi-Family Properties in Oakville
Oakville, located in the Greater Toronto Area (GTA), offers a variety of housing options, including multi-family properties like duplexes. To help you find suitable properties for house hacking, we might start in the following areas:
- Kerr Village: This vibrant neighborhood in Oakville has a mix of housing types, including some duplexes and multi-family properties. Its proximity to amenities and transportation makes it an attractive option for potential house hackers.
- Old Oakville: Known for its historic charm and a mix of housing styles, Old Oakville may have opportunities for multi-family properties. It's a well-established area with a diverse real estate landscape and high demand from renters.
- Bronte: Situated along the waterfront, Bronte is another area worth exploring. It offers a mix of housing options, and some properties may be suitable for house hacking.
- College Park: With a mix of single-family and multi-family residences, College Park is a neighborhood where house hackers may find properties that fit their investment goals.
- Uptown Core: This area, with its mix of residential and commercial spaces, may have multi-family properties available for house hacking. Its central location provides convenient access to amenities.
We've also included updated listings for Oakville homes for sale with basement apartments below and we are ready to help you find that ideal property for your plans. Ready to find homes for sale in Oakville? Contact us any time.