August 25th, 2026 | Buying
Should I Buy a House With an In-Law Suite or Build One?
When life changes, your housing needs may change too. You might need more space, better accessibility, room for family or guests, or simply a home that offers greater flexibility. Your first thought may be to buy a new home that better suits your needs.
While selling your existing property and buying something new is certainly an option, it isn’t the only path available to you. Some homeowners are getting creative with the property they already own by building an additional residential unit right on site. Renovate or move? Let’s explore the benefits of both options.
Do you want to stay informed about what is happening in the world of Ottawa real estate? Get the latest news and early access to listings by subscribing to our newsletter today.
Why Consider a Secondary Suite?
Whether you build it or buy it, owning a house with multiple residential units has undeniable benefits. Rental income comes immediately to mind. However, there’s much more to it than that!
A legal secondary suite can also broaden a property’s appeal to investors, families and homeowners looking for a little help covering their monthly housing costs. Surprisingly, it can even appeal to first-time buyers who may be able to qualify for more financing based on the projected rental income, depending on the lender and their individual circumstances.
Perhaps the biggest appeal is for downsizers seeking an alternative to moving to a condo or a retirement residence. A house with a secondary suite means a caregiver or family member can live onsite, giving them the support they need to remain in a larger home.
Alternatively, it allows for the possibility of multi-generational living. It can be the ideal path for a younger buyer to get into an otherwise unaffordable market.
Regardless of where you are in the home buying process, the posts below can help:
- Things to Look for When Buying a House
- Why Now Is a Good Time to Buy a Home in Ottawa
- Questions to Ask When Buying a House
Buying a House to Customize
The easiest and fastest way to own a house with a secondary suite might be to simply buy it. You won’t have to wait for construction to be complete, and you can bypass all of the noise and inconvenience that goes along with renovating.
The typical close on a house is 30 to 60 days, whereas getting permits, vetting contractors, and building an additional unit can take several months, at least.
The downside of buying is it can be challenging to find a home that meets all of your specifications. When searching for the purposes of multi-generational living, it can be even more difficult as everyone must agree on the property. Depending on the market and how much competition there is for the right home, buying can also be the more expensive option. A detailed cost comparison between buying and building can help you weigh your options.
Building a Secondary Suite Has Its Challenges
The More Homes Built Faster Act made it easier for homeowners to create additional residential units. In Ottawa, eligible properties can generally have up to three dwelling units, subject to applicable zoning, servicing and building requirements. Certain additional residential units may also qualify for exemptions from development charges.
However, you will still need some building permits to ensure all construction adheres to Ontario building and fire safety codes. Planning and authorization take time before you can even begin the renovations.
Once you get the green light for all projects, you’ll need to find, vet, and hire contractors to perform the work, and this alone is no easy task. Then there are all of the renovation costs, which can be unpredictable due to materials and labour. If the numbers and timeframe work in your favour, then it might be time to start the process.
The Benefits of Building an Additional Unit
Building a secondary suite offers a level of flexibility and customization that can be difficult to find when buying a home with an existing suite.
For some homeowners, the ability to stay in the house they grew up in or raised a family in is the most valuable advantage of all. There are so many possibilities, now and in the future, that could make the construction well worthwhile.
It could start with generating rental income each month by bringing in a tenant. Later on, the second unit could go to a family member to give them a head start in the market.
Due Diligence Is Essential Either Way
Whether or not you see yourself as a landlord could be the deciding factor in building your secondary suite or buying a multi-residential home. In either case, you’ll need to familiarize yourself with the Ontario Residential Tenancies Act before renting out your unit. Tenants have numerous rights under provincial law, and it’s your responsibility to abide by them.
Looking for even more real estate investment advice? You’ll discover a few timeless strategies in the posts below:
- Should I Buy an Investment Property Now for My Kids in the Future?
- Is Now a Good Time to Invest in Ottawa Real Estate?
- Why Is Buying an Investment Property Different From Buying a Home to Live In?
The Financial Advantages of Secondary Suites
Whether you buy a house that has an additional unit or construct one of your own, there are tangible financial and tax benefits. The possibility of income is just the beginning.
When you rent out the unit, you could also potentially claim a portion of utilities, maintenance, and other costs as a rental expense. Not only are you earning money, but you may also benefit from eligible tax deductions when tax time rolls around. Beginning your real estate investment journey in this way may not be for everyone, but it definitely has its advantages!
Do you want help finding a new house that will accommodate a secondary suite or advice on building one? Our Ottawa real estate agents are standing by. Reach out to 613.829.7484 or email mail@chellteam.com to learn more.
