Conclusion
The Blais project is indeed one of great profit. We strongly advise our client to rent his unit using scenario 2 ( see “rental options”). Due to the unit's location, the Blais' marketing focus should be directed towards (local) people needing temporary housing. Recently seperated males seeking a "turnaround" dwelling and other types of individuals and/or famillies seeking a comfortable place to live while shopping the real estate market. The market demand for such units rented on a daily basis in Ottawa has been growing for the past several years. Due to the near-by hospitals, Canada Post offices and other industries alongside Industrial Boulevard, we believe that the unit shall be rarely vacant.
With an internal rate of return of 63%, our clients will make a net annual profit of $5,384.66 while paying the mortgage for this unit’s construction. This means that the Blais’ can spend up to an extra $448.00/ month on the mortgage to renovate their own dwelling unit, on top of their initial budget, providing them with the luxuries they have been longing for.
To top it all off, within 12 years, this couple will have paid off their loan for the unit and made an additional $20 000 on the initial cost of the unit alone, simply due to inflation in the real estate market… and will have made an additional “forced saving” of over $90 000. Not bad for what was to be an empty basement adding to the financial burden of their house’s mortgage...
This basement unit is absolutely a sound investment for our clients, one that they will cherish and benefit from for years to come.
