House Hacking is a strategy when you rent out a portion of your primary residence in order to generate income that offsets your mortgage and and other costs that are associated with owning a home.
Why is this good?
1) It Mitigates Your Monthly Expenses cost.
In some cases it brings down your monthly mortgage expense to zero. Or even turns it into a profit. When that happens, it becomes a source of passive income which is the case for many homes these days in Vancouver.
2) Get Approved for a Higher Amount of Mortgage.
A good realtor and a good mortgager will ask you what the purpose of buying a property is for. Banks will approve you for a higher loan if they know you are renting out a unit of the property because it brings down risk for them.
3) Learn to Become a Real Estate Investor
No matter if this is your first property, second, third, or more- house hacking is a fantastic way to learn the skills it takes to be a real estate investor (such as property management and being a landlord) while taking advantage of your current real estate investment.
We don’t recommend House Hacking to every client but it is an option to consider for many. If you’re interested in finding out if House Hacking is the right choice for you, contact us today.
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