Ask Ozzie Jurock1 Comment

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Q: We have an older home on the west side. We have a lane and we were told that if we build a laneway home it would be more profitable to sell?

A: First off, depending on where you are located on the west side, you may have a $1.5 million asset already -just in the lot value -if your home is on a 33-foot lot.

If it is on a 50-foot lot … it may be over $2 million. A 500-to 600-square-foot laneway home may cost $200,000 to $300,000.

A laneway home also on a 33-foot lot often eliminates a lot of the backyard. I would not do it.

On the 50-foot lot, it may work better. But I would get a builder to draw up plans, get quotes and sell the idea of the laneway home … but if someone pays that kind of money for the lot they likely have their own ideas. If on the east side, I would definitely consider it as ‘the mortgage helper” that may make a difference.

1 Comment on this article

  • Jenny September 9, 2011

    We have purchased rental properties that we rent out as furnished suites. We have used our heloc to purchase these. They make us very nice positive cash flow. My question is; should we be paying down our heloc or putting this extra $$$ onto our mortgage. We don,t want to pay the tax on them if we can find other alternatives.


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