SUITE DEAL: Secondary suites open doors to New Home OWNERSHIP

With rising house prices and tightening mortgage regulations, how can first time home buyers get their dreams of new home ownership off the ground? One Regina home builder is advising home buyers to look under their feet and consider the financial advantages of owning a new home with a regulation basement suite. By popular demand, Trademark Homes Inc. is bringing back its innovative “Mortgage Helper” basement suite option, available at its new Harbour 13.2 streetscape development in The West Landings, Harbour Landing. Trademark Homes is building on the success of last year’s Harbour 13 project, which consisted of 13 homes designed and constructed to have regulation basement suites. Home owners enjoy the advantages of living in a brand new home, while using the rental income from the secondary suite to pay down their mortgage. All 13 homes sold out in a matter of just a few weeks, said Melissa McCullough with Trademark Homes. Trademark Homes is in its fifth year of business in Regina. The company is locally owned by two couples – James and Melissa McCullough and Nathan and Melanie Cressman - who share a lifelong love of their home province of Saskatchewan. In addition to being a coowner, Nathan Cressmen is also Trademark’s real estate agent. “We like taking a fresh approach to building new homes. We’re willing to try new things, such as the Harbour 13 development. We saw a need for the Mortgage Helper basement suites, so we jumped on it. It’s another thing we can offer our generation, because we realize it’s getting harder for them to buy a house,” said Melissa McCullough. The McCulloughs say that having a basement suite helped them become new home owners when they got married. “Our first house had a basement suite. We loved owning a house, but not having the responsibility for the whole mortgage on our shoulders. It allowed us to save up money for our next house because we had a renter helping to pay down the mortgage,” said McCullough. “We built our second house with a basement suite. By that time, we had started our family and had a baby daughter, but we still didn’t need that basement square footage.” For many people, the basement of their home is underutilized space yet has the potential to become a financial gold mine. “There’s a lot of money in your basement,” said McCullough. “It’s such a good piece of real estate. People aren’t using their whole house to its full potential. They’ll put a few boxes in their basement when they could be bringing in upwards of $1,500 a month in income by thinking outside the box and adding a regulation suite.” McCullough says that adding a regulation basement suite can open up the possibility of new home ownership to many first time buyers. “There are so many young people who want to get into a house in Regina. This is a great way to afford a new home and have someone help pay down your mortgage.” First time home buyers aren’t the only consumers who can benefit from building a new home with a secondary suite, added McCullough. “My grandparents go south for several months during the winter. They always needed someone to check on their home while they were away. I asked them, ‘When was the last time you were in your basement?’ My grandma said, ‘A month ago, to change the furnace filter.’” McCullough’s grandparents will soon be enjoying the advantages of Trademark Homes’ basement suite option. “The suite generates revenue for them that they can use for their winter travels. If you have your mortgage paid off, the rental revenue from the basement suite can be used to enhance your lifestyle. They’ll go travelling on that money,” said McCullough. Trademark Homes’ Harbour 13.2 project consists of 14 new homes each designed to have an optional regulation basement suite. Three different floor plans are available, including bungalow and two-storey options. The York is an 1150 square foot three-bedroom two-storey with an optional one-bedroom regulation basement suite. The York is priced at $359,900, plus $30,000 for a one-bedroom basement suite option. Two variations of the Melbourne bungalow model are also available. The 1033 square foot three-bedroom version is $343,900. A 1078 square foot version of the Melbourne is $349,900. The Melbourne model is available with an optional two-bedroom regulation basement suite for an additional $45,000. Prices stated are before the GST calculation. Trademark Homes ensures that the basement suites meet all City of Regina regulations for secondary suites. “We’ve done all the research for the homeowner to ensure the suite surpasses building codes and meets our high standards. They are completely fireguarded with additional soundproofing. The windows in the basements are of a larger size, to bring in lots of light and allow for easy escape in the case of an emergency,” said McCullough. Trademark Homes finishes each basement suite to the same high standards as the home’s main floor. The suites are completely self-contained, with in-suite laundry, separate mechanical and individual metered utilities. The basement suites are also designed to qualify for Saskatchewan Housing Corporation’s secondary suite forgivable loan program. Home owners wishing to build a secondary suite can apply to the program to receive a forgivable loan for 50 per cent of the total construction or renovation cost of a secondary suite. The maximum loan amount is $30,000 per unit. To qualify for the program, the home owner has to agree to rent the basement suite at an affordable rate to tenants with low to moderate incomes, based on the rent schedule established by the Saskatchewan Housing Corporation. Effective January 1 of 2012, the loan forgiveness period was reduced from 10 years to five years. The terms established by Saskatchewan Housing Corporation limit the monthly rent a Regina home owner can charge under the program to $791 for a one-bedroom unit and $950 for a two-bedroom unit. “The home owner has to do the math and figure out all the pros and cons, to determine whether they want to take advantage of the secondary suite forgivable loan program and then have to rent out the suite at a lower rate,” said McCullough. Trademark Homes will open its Harbour 13.2 show home in early January, located at 4761 James Hill Road, in Harbour Landing. The show home is the 1033 square foot Melbourne model and includes a completed two-bedroom regulation basement suite. Thirteen additional lots surround the show home as part of the Harbour 13.2 project. Trademark Homes has just released 8 more houses as part of our Harbour Landing 13.3. There are 3 homes still available all with the basement suite option. Harbour Landing’s proximity to the University of Regina will make it easy for home owners to find tenants, said McCullough. “Regina is having a real rental crisis. With the vacancy rate under one per cent, it’s really hard for renters out there, especially university students,” said McCullough. There are many advantages to living in Harbour Landing, she added. “It’s a really vibrant neighbourhood that’s attracting lots of cute stores and restaurants.” Easy commuter access adds to the convenience of living in Harbour Landing, said McCullough. “This is the closest newly developed neighbourhood to Regina’s Global Transportation Hub and for people working at the Loblaw’s Distribution Centre. There’s also easy access for anyone working at the refinery or nearby mines.” Trademark Homes is a member of the Regina & Region Home Builders’ Association. All Trademark Homes feature third party warranty by Progressive New Home Warranty Solutions Inc. In addition to special projects like Harbour 13.2, Trademark Homes builds two categories of houses. Trademark’s Executive Homes are located in Regina’s newest developments of Harbour Landing, Lakeridge, The Greens on Gardiner and in the nearby communities of Pilot Butte and White City. The builder also offers a line of “Lifestyle” new homes which are being built in existing mature neighbourhoods throughout Regina. For more information, call Trademark Homes at (306) 205-2502 or visit www.trademarkhomes.ca.