Quote:
Originally Posted by supafamous
Would the current house be big enough to host if they kicked the tenants out? If so, I'd just do that and do a nice little renovation to make it more family friendly.
If it isn't big enough I'd knock it down and build a new house on it ASAP - the rules are changing on detached houses and by end of year or early next year you'll only be able to build 2400sf on a standard lot versus 2700 right now. Make it a passive house and you're pushing 3000sf, put in an elevator to deal with the mobility issues they'll run across as they get older and they've got a dream house. Figure $1-1.2m for a new build and they don't have to move away from their current neighbourhood.
To pay for the new build take a mortgage out on the inherited house while you rent it out to pay that mortgage so no property transfer tax or agent fees from selling and you can write off the mortgage interest.
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At the current rates that builds are going at, a passive house with elevator will probably be closer to 1.5m, though I'm on a similar thought path as you though.
Start shopping for a development firm and figure out who they want to build a new house, get the permits in and wait. In the meantime rent out the Killarney house. Once the permits are ready, kick the tenants out at Killarney and move there while their current plot is rebuilt. The whole permits to move back in process will probably take them around 2-3 years.
Once they've moved back into the PNE house, they can either rent out the Killarney house again for some income, or sell it and invest. I would say you can't lose with either way. If they keep both houses that means both kids will eventually have a SFH to move into when they are older, or a wad of money.
I don't see moving away to be really that ideal. If Killarney isn't what they want then probably the only other area I can think of is the Renfrew Heights area. Victoria Drive would probably be too far from the kids. We live in the Fraserview area and we aren't big fans. Sleepy would be a great adjective to use.