Mixed Residential Commercial Property Home Mortgage
November 7, 2019 | Posted by:
There’s nothing new about homes found attached to commercial properties. Residences have been found perched above corner stores, dry cleaners, and other brick & mortar businesses over the last century in Winnipeg. But now with the “live work play” (LWP) concept being on the tip of the tongue of real estate developers who seek to maximize profitability from a new building we’re seeing more mixed residential-commercial properties than ever before. On the surface, buyers who find the LWP concept highly attractive are considering a mortgage in a mixed-use building. It can be a great opportunity for sure, but there are some things to consider and questions you need to ask before making the commitment. Keep reading.
5 Things You Need to Consider Before Buying a Home in a Mixed Use Property in Winnipeg MB
1. What Businesses Are in the Building Today?
If the building is already established then you can quickly see what businesses are attached to the property, and ultimately the place you call home. Make sure they align with your wants, needs, and tastes. Businesses such as grocery stores, cafes, boutique fashion, pet stores, and fitness centers make for highly attractive neighbors and may make life very convenient for you.
2. What Businesses Will be in the Building Tomorrow?
Take note that the businesses in the mixed-use building may not be there in the near future. Inquire about how long their leases are - because you may find that those who are here today will be gone tomorrow and replaced by less desirable counterparts. If there are current commercial vacancies, find out what types of businesses local zoning currently allows because that too may dictate who and what is to come. Imagine committing to a mortgage only to discover that a liquor store, vape shop, or cannabis dispensary is opening up under the condo? That completely changes the dynamic of the block.
3. Does It Suit Your Current and Future Lifestyle?
Right now, getting a mortgage in a mixed-use building may sound like a great idea, but understand that you’re making a longterm commitment here - does that mesh with “future you”? For example, a young couple may look forward to taking advantage of the leisure-driven amenities in and around the building. There may be countless nights of dining out, going to the movies, having drinks at the local pub, and getting up at 6 AM to hit the CrossFit gym to recover from it all. But if there are children on the horizon in the next five years or so, all of a sudden a mixed residential-commercial space may not be as appealing. The accompanying noise and general bustle may present a considerable challenge to the sanctity of your young family home. Take stock of what your future may look like before jumping into a condo mortgage in a mixed-use building.
4. Do You Like the Idea of Renting the Space on Airbnb?
This is one big benefit of investing in a home in mixed residential-commercial building. Vacationers on Airbnb and VRBO find these properties very attractive because they benefit from the immediate proximity to amenities. Even if you plan on making the space your primary residence you can earn a few bucks (to help pay down the mortgage) by renting out the condo when you are away on vacation.
5. Commercial Zoning Restrictions
A home in a mixed-use building may have more than traditional strata laws to contend with, as there may be commercial zoning laws that handcuff you in certain ways. They won’t differ all that much from what you may be accustomed to with strata but commercial watchdogs will probably be more likely to catch an infraction. That may impact what you can place and/or do on your patio (BBQ, a garden, decor, etc.) so be sure to ask your Realtor or real estate agent about anything and everything that can impact the quality of life in your prospective home.