Thinking About a Two-Apartment Home in St. John’s? Here’s What Buyers Should Know

What if your home could help with the mortgage?

For many homebuyers in St. John’s and the surrounding area, a two-apartment home can be an attractive option. Whether you’re a first-time buyer looking for a little help with your monthly costs, a family who wants additional living space, or someone interested in getting started with real estate investing, a home with an apartment can offer some extra flexibility.

If you’ve been searching for two-apartment homes for sale in St. John’s, there are a few things worth knowing before you start booking viewings.

What Is a Two-Apartment Home?

Simply put, a two-apartment home is a property that contains two separate living spaces within the same home. Depending on the property, each unit may have its own entrance, kitchen, bathroom and living areas.

One of the biggest appeals is flexibility.

You could live in one unit and rent out the other, helping offset some of your monthly housing costs. You could also use the second apartment for family members, guests or additional living space.

For buyers who are considering their first investment property, a two-apartment home can also be an approachable way to dip their toes into real estate investing while still living in the property themselves.

Why Are Buyers Considering Two-Apartment Homes?

There isn't one type of buyer who is drawn to a two-apartment home.

For some, it's about affordability. With rental income from the second unit, homeowners may be able to reduce the amount they are paying out of pocket each month.

For others, it's about long-term investment potential. Having a separate apartment gives you the option of generating rental income now, while still owning a property that you may eventually want to use differently.

And for families, a second apartment can provide a little more flexibility — perhaps for an older child, a parent, visiting family or simply some additional space.

Of course, every property and financial situation is different, so it's important to speak with your mortgage professional and other appropriate professionals to understand what makes sense for you.

What Should You Look for When Buying a Two-Apartment Home?

Not all two-apartment homes are created equal, so it's important to look beyond the number of bedrooms and the colour of the kitchen cabinets.

Here are a few things buyers should consider:

Is the apartment registered?

This is an important question to ask when looking at a two-apartment home in St. John’s.

A property being marketed as having an apartment doesn't necessarily mean the apartment is registered or meets all applicable requirements. Your REALTOR® can help you ask the right questions and determine what information should be reviewed before moving forward.

How are the units separated?

Consider how each living space functions.

Does the apartment have its own entrance? Is there separate laundry? How are utilities handled? Is there adequate parking for both households?

These details may seem small when you're viewing a home, but they can make a big difference in day-to-day life.

What is the location like for renters?

If you're planning to rent out the second unit, location matters.

Think about proximity to schools, public transportation, shopping, major roads, recreation and other amenities. A home in a convenient location may be more appealing to potential tenants.

This is also where it helps to think beyond your own needs. You might love a particular neighbourhood, but if you're relying on rental income, you'll want to consider what a future tenant may be looking for too.

Does the layout work for you?

Don't forget that you're buying a home for yourself, too.

Think about how you would actually use the property. Is your living space comfortable? Is there enough privacy between the two units? Can you see yourself living there for several years?

The best two-apartment home isn't necessarily the one with the biggest apartment — it's the one that works well for your overall plans.

Is a Two-Apartment Home Right for You?

A two-apartment home can be a great option, but it's not automatically the right choice for every buyer.

You'll want to consider the responsibilities that come with having a tenant, including maintenance, communication and understanding your responsibilities as a landlord.

It's also important to have a realistic idea of your budget. Don't base your decision solely on the potential rental income. Make sure the property makes sense for you financially even after considering expenses, vacancies, repairs and other costs associated with owning the property.

And, as always, it's a good idea to talk to the right professionals before making a decision — including your REALTOR®, mortgage professional, insurance provider and any other professionals who can help you understand the property and your obligations.

Start Your Search

If you're thinking about buying a two-apartment home in St. John’s, the first step is figuring out what you're actually looking for.

Are you hoping to live in one unit and rent the other? Looking for an investment property? Need space for family? Or simply want to keep your options open?

Whatever your reason, having a clear idea of your goals can make the home search much easier.

You can browse homes for sale in St. John’s and surrounding areas on our website and start getting a feel for what's currently available. You can also keep an eye out for two-apartment homes for sale in St. John’s that fit your budget, preferred neighbourhood and needs.

At Royal LePage Atlantic Homestead, our REALTORS® can help you explore your options, understand what to look for and find properties that fit your plans.

Ready to start your home search? Take a look at what's currently available or connect with a Royal LePage Atlantic Homestead REALTOR® to talk about what you're looking for.

Happy house hunting!