Increased Retirement Income
Making use of underused space in your house or on your property is an intelligent way to boost your retirement income. By investing in your real estate, you can generate monthly income while increasing the resale value of your home for peace of mind so you can truly enjoy your retirement.
Additional Dwelling Units
Privacy and security might be of concern in adding space to bring in income to supplement your retirement. Working with knowledgeable contractors is key to ensuring that your basement, attic or garage conversion is done to code and provides a completely separate dwelling with their own entrances and amenities. Alternatively, building a laneway or garden unit that is completely separate from the primary home can provide independent living space that can be rented long or short term.
Income Options
With the increased demand for housing across the province, providing long term rental can provide between $1000 to $2000 or more per month depending on the size of the rental unit. Another great option is short term rentals like an Airbnb or VRBO. The process of registering an account is fairly simple, and you can set your rates and availability to suit your schedule and needs.
Additional Benefits of ADU’s For Retirees
Besides the added income, a garden unit can offer retirees independence in other ways. A garden unit is generally a compact, single floor unit that provides the resident with the amenities needed to live independently. Some retired homeowners will rent out their primary residence and live in their Accessory Dwelling Unit. This increases the rental income they can collect and they have a place to call home if they are traveling or to simply have a place that is easier to navigate and maintain as they grow older. An ADU can also provide multi-generational living, with Grandparents living in one to be closer to their adult children and grandchildren providing support for all members of the family.
Market Trends
As the population ages, they traditionally have prepared and saved to retire between the ages of 55-65 but as the market has cooled and inflation has skyrocketed, many are finding that their pension doesn’t quite cover their needs. Employee Pension Plans have declined with many workers having to save for their own retirement. The number of people reaching retirement age is also rising. Over the next 20 years, the amount of retirees is expected to grow by 22%, putting a strain on the Canadian Pension Plan and Old Age Security. Having an additional stream of income built into your current property can be a secure way to supplement your retirement income.