How Do Construction Loans Work?

Building a new home is a dream for many Canadians, but unless you’re paying with cash, you’ll need to obtain a construction loan to make your dream a reality. These loans are different from conventional mortgages, so it’s important to understand how they work before you even think about starting the building process.

Types of Construction Loans

According to Maxiron Capital, construction loans are short-term and used to finance a building. There are two main types of construction loans:

  • Standalone: The first loan pays for the construction. Once you move in, you obtain a mortgage to pay off the construction debt. Ultimately, you’re taking out two separate loans.
  • Construction-to-permanent: You obtain a loan to pay for construction. Once you move in, the lender converts the balance into a permanent mortgage. It’s like having two loans in one package.

It’s important to understand the difference between these two types when applying for your loan.

Standalone

Standalone construction loans aren’t as popular as they once were, but it may work out well if it allows you to put down a smaller down payment. If you already own a home and don’t have much cash for a down payment, this type of loan may allow you to stay in your current home while your new home is being built.

But there are some drawbacks to a standalone construction loan:

  • You’ll pay two sets of closing costs: one on the construction loan, and one on the permanent mortgage.
  • You won’t be able to secure a maximum mortgage rate. If rates rise while your home is being built, your permanent mortgage may have a higher-than-expected interest rate.

Construction-to-Permanent

With a construction-to-permanent loan, you only have to worry about one closing. This reduces the fees that you have to pay.

While the home is being constructed, you’ll only have to pay interest on the outstanding balance. The interest rate will be variable during construction, meaning that it will move up or down with the prime rate.

Once the construction is complete, your lender will convert the construction loan into a permanent mortgage. The permanent mortgage is just like any other home loan. You can choose between a fixed-rate and an adjustable rate loan. You can also choose between a 15-year and 30-year mortgage.

With many lenders, you have the ability to lock in a maximum rate once the construction begins. Generally, lenders will require a down payment of 20% with this type of loan. Of course, every lender will have its own requirements.

One other important thing to note: construction loans are generally harder to obtain than a conventional mortgage. Because you don’t have a complete home as collateral, qualifying for a loan can be challenging. The lender will also want to be sure that you can afford to pay the monthly interest payments in addition to your existing mortgage or rent.

Don’t let the challenge of obtaining a construction loan deter you from building your dream home. If you take the time to make sure that your finances are in order and that your credit is in excellent shape, securing a construction loan may not be as challenging as you think.

 

 

 

Financing a custom-built home

If you’re considering a custom-built home, there are some core considerations  

Buying a turn-key home has some clear benefits in terms of offering you a ready-made home, where someone else has made all the tough decisions for you, while building offers you the opportunity to customise your home exactly as you want and need it – but it means making the tough decisions yourself.

It’s a good idea to familiarise yourself with some trends in the Canadian real estate market before you get started.

Here are some things you must consider:

Getting a loan for a custom-built home

Bear in mind that getting a construction loan for your custom-built home can be a little more difficult than applying for a traditional mortgage. Construction loans are generally considered to be a higher risk. This means that you’ll need to have really strong credit, and you’ll likely need to have a deposit of 20-25% saved. It’s usually easier to get a construction loan to build on land you already own.

Check out our overview of the Canadian real estate market here, and learn more about how to organiae your finances here.

Get ready for paperwork

As well as proving to the bank that your finances are in order, you’ll need to convince them that this house will definitely get built. How? You’ll need to demonstrate that this is a well-planned and low-risk project by providing details of the land where your house will be built, floor plans, ceiling heights, insulation and building materials.

The bank will also want to see a realistic timeline for when your home will get built.

Planning your budget

Building a custom home is generally considered to be more cost-effective than buying a standalone home, but only if you know what you’re doing.

Map out your budget projections carefully, research your costs carefully, get more than one quote for big elements of the project, and make sure to leave yourself a cushion in case any element costs more than expected.

A slight budget over-run can cause significant delays in your project if you haven’t prepared for it.

Work with professionals

It may be your dream home, but it’s not a DIY project – in order to secure financing for your home you’ll need to show the bank that you are taking a responsible and sustainable approach to getting your house built. That means brining in experts like the team at FC Developments. Working closely with a contractor like FC Developments from Edmonton, will ensure that you get your project financed, and also that the project gets completed by the deadline and is finished to a high quality.

So…

Building your own home is an ambitious endeavour. It’s an ideal project for those with a clear vision of what they want, and the tenacity to see the project through, even as occasional delays or budget over-runs happen.

Getting the right financing can pose initial challenges, but with sufficient forward-planning, you’ll be building your dream home in no time.

Foreigners Investing in Canadian Real Estate

There’s a gold rush in Canada…

Foreign buyers have been mining for years now, competing with domestic buyers for real estate, especially in Greater Toronto Area and Greater Vancouver.

Why?

Because the Canadian economy continues to grow at a rapid rate… and…

Canada is leading the way of all G7 nations in population growth. It’s expected to rise at a rate of 2.4% over the next few years (while most others are seeing a population decline). GTA is expected to receive 28% of this growth (according to CBRE’s annual Global Living 2019 report). With a rapidly growing population, there comes an influx of foreign buyers ready to sweep up gold-coated real estate.

Plus… you don’t need to have permanent residency or citizenship to buy property in Canada.

As a buyer, you can reside in Canada temporarily. If you choose to have an extended stay or become a permanent resident of the country, you will, however, need to fulfill immigration laws.

Or, you can choose to remain a non-resident. You simply need to comply with the CRA (Canada Revenue Agency) by filing annual tax returns.

This makes it easy for foreign investors to get themselves a slice of the pie.

Where Are Foreign Investors Buying?

#1 Toronto

According to the PWC – Emerging Trends Annual Report, net immigration in the Greater Toronto Area hit a 15-year high in 2018.

With an ever increasing population, always comes an increased demand in housing. But this demand isn’t just coming from those living in Canada. Increases in population and economy will attract millions of gold-frenzied eyeballs worldwide.

The CBoC reports that the local construction sector is estimated to hit 10 years in a row of growth this year (2019), with GDP estimated to reach approximately 2.3%.

In April 2017, once the 15% foreign buyers tax was enforced, market conditions fluctuated. Plus, interest rates rose (with Bank of Canada raising theirs 0.5% to 1.75% from 2017 to 2018. Not only that, but according to CBRE’s Global Living 2019, the average house pricing grew only 1.5% in 2018.

This is very low, compared to the average 10% annual growth (which we’ve seen for the past 10 years).

#2 Vancouver

Vancouver has been the West Coast pillar of Canada for decades. It’s one of the most expensive cities to live in across the globe. With an average house price of $1,011,200 (March 2019), Canadians are feeling the after-effects of major foreign investment over the years.

According to Stats Canada, foreign property ownership in Metro Vancouver is above $45 billion (including $22 billion in the City of Vancouver).

Also, 20% of condos worth $1.5 million or more are ownded by non-residents. This number is staggering, and it is rare to see a city in the world with foreign ownership this high on condos.

After there was still a struggle to cool the market in 2017 with the 15% foreign buyers tax, there had to be more done in Vancouver.

So the foreign buyers tax was increased to 20%. Another solution brought in was an increased tax rate on homes valued above $3 million. (Read more at PWC – Emerging Trends). Plus, an empty home tax of 1% of the property’s assessed taxable value.  

From August 2017 to August 2018, annual growth for house prices was 4.1%, which was much lower than the 9.3% average over ten years (according to Global Living 2019).

An Opportunity To Strike Back From The Foreign Buyer Frenzy…

Despite the difficulty in affordability to enter into the market (especially as a first time home buyer), this cooldown period in the two hottest real estate markets in Canada is good news for Canadians.

It brings an opportunity to enter the market during a cooldown from the fluctuations that have been greatly influenced from foreign buying.

Experts at SKYHUB suggest that if you’re looking to get in the market but have been dealing with affordability constraints, a window of opportunity has opened up for you to get in before it heats up again.

When it comes to choosing between Vancouver or Toronto: Analysts advise toronto homes takes the lead over Vancouver with the very promising economic and population growth fueling the future real estate growth.

With the Price of Condos Going Up in Toronto, It’s Important to House-Hunt Efficiently

Are you looking to break into the ultra-competitive and cutthroat world of condo-ownership in Toronto? Consistently scoring within the top 10 most liveable cities in the world, Toronto offers all kinds of reasons to put down roots and invest in property. Because so many others are thinking the same way, the housing and condo market tends to be extremely fast-paced, expensive, and competitive. With so many condos being built around the city, you may be under the impression that it’s simple to get in, but you couldn’t be further from the truth.

Here we’ll take a look at what you need to know about the condo-hunting process in Toronto to ensure that you get the most bang for your buck and a property you are happy with.

Target a Few Specific Neighbourhoods

Because Toronto is a big sprawling city, your search can feel pretty overwhelming. This is why it’s a good idea to start by narrowing it down to a few target neighbourhoods. Your “top” neighbourhoods can be decided by a number of factors such as proximity to work, nearby shopping, dining, and entertainment, access to public transportation, and the general feel of the neighbourhood.

By targeting your search to a few neighbourhoods you’ll be eliminating all kinds of options that ultimately won’t fit your list of criteria.

Create a Wish List of Amenities and Features

Now that you’ve got your eye on a few specific neighbourhoods, it’s time to create a wish list. These are items that you’d like the condo to have, and these should be prioritised. Some will be deal breakers whereas others you may be willing to live without.

Typical amenities you may want to look for include on-site parking, additional storage locker on-site, washing machine and dryer in the unit, secured premises with an on-duty security person, a pool, a gym, your own outdoor space (a patio or balcony), etc.

Be Aware of the Condo Maintenance Fees

It’s also important not to just focus on the list price of the condo but also the maintenance fee. What can seem like a reasonably priced unit can actually be quite costly once you factor in the monthly maintenance fee. Statistics show that condo fees in Toronto have actually gone up 2.5% in the past two years, so it’s something you need to be aware of.

Don’t Be Fooled by the Staging

As you tour the various condo units, you also want to view things with a critical eye. Don’t be fooled by the seller’s staging with furniture and décor. That stuff won’t be staying, so you need to look at the bare bones.

Still Looking for More Information?

If you are still looking for more information and want to be sure you know all there is to know before you dip your toes in the market, it’s best to continue doing your research. This guide outlines most of what you need to know before and during a condo-hunt in Toronto. It can answer all your burning questions, and ones you didn’t even think to ask.

Find the Condo That Meets Your Budget and Needs

By following these tips, you’ll be able to head into the condo hunting process much more confident, and ready to find the best unit for your budget and needs.

Basic Tips To Help You Have A Perfect Lawn

So many homeowners want to have a truly perfect lawn but do not actually know how to do this. Taking care of the lawn is something that is not as easy as you might think. It needs a lot of work. You need to be sure that you do all that is needed in order for the lawn to be perfect. This requires a lot of knowledge. The tips below, offered by Fix It Right Plumbing, will help you do exactly that.

Preventing Weeds From Showing Up

You have to stop the weeds from gaining roothold inside the lawn way before they start to germinate. This is pretty easy to do when you use a suitable herbicide. You want to buy a pre-emergent one that will control dreaded crabgrass, all while eliminating some specific weeds that are damaging for lawns. The idea of these herbicides is that they stop seeds from sprouting. Just be sure that you follow the package instructions in regards to protective equipment, safety precautions, application procedures and proper clothing.

Remove Broadleaf Weeds As Soon As They Sprout

When broadleaf weeds appear they are instantly obvious. They are bright yellow, like dandelions, have white-flowering clover and a big-leaf plantain. You want to treat this by applying granular weed control. When just some offenders are seen, as is often the case with most lawns at the beginning of the infestation, hand removal is possible.

As a helpful tip, wait until heavy morning dew appears if you want to apply the granular weed products. Granules require moisture in order to properly stick to the weed leaves. Dewy mornings give you exactly that.

Frequent High Mowing

When you mow the lawn short it all seems like a wonderful time saver. The problem is that this practice can actually damage the grass. Weeds also end up rooting faster. You want to keep the law just a little bit taller. This makes the grass healthier. Generally, the idea is to never cut off anything more than one-third of grass blade.

Sharp Mower Blades Are Mandatory

When the lawn mower has dull blades, grass will be torn. This results in ragged edge in the blade, which makes overall lawn appear grayish brown. You want to replace or at least sharpen lawn mower blades if wear signs appear. As an alternative, do this once if mowing season starts.

Lawn size and mowing frequency always dictate if you should replace or sharpen blades more often. You want to look at grass blade right after you mow. When it is frayed or shredded, you want to sharpen up the blades.

Water During Mornings

No matter what you might think, the very best time to water the lawn is always during the morning, early during the morning. This is because sun helps dry grass. If you water during the night or when it is dark, prolonged blade moisture appears. This can easily lead to lawn diseases. Water less but for a longer period of time. This is always better.

5 Reasons Why Organizing Your Basement Renovation in Advance Matters

You’d like to do something with the basement other than use it for storage. Before you think about starting a basement renovation in Markham, it pays to work with a contractor to come up with a specific plan of action. This approach will make it a lot easier to achieve the desired result. Here are five other reasons why developing and following a step-by-step plan is a good idea.

Further Defining How You Want to Renovate the Space
Choosing to identify the steps for basement remodelling and arranging them in the proper sequence helps you to get into the details of how you want to renovate the space. While you do know that it will become a spare bedroom, have you thought about little things like where to place the bathroom or how many outlets you want along each wall? By getting more precise with the steps related to the wiring and the plumbing, you can plan more effectively.

You Avoid Having to Repeat Steps

Establishing a specific sequence for each of those steps for basement remodelling means following a logical progression of events. That progression means that you don’t end up having to undo something that was already done, then go back and do it a second time. This is important, since repeating steps because they were out of sequence will only add to the overall cost of the basement renovation in Markham.

It’s Easier to Schedule Deliveries of Essential Materials

The basement renovation in Markham will require purchasing quite a bit of supplies and materials. Unfortunately, there is not room to store everything until it’s needed. A better approach is to set up a series of deliveries that occur just before you will need certain materials.

Your steps for basement remodelling help to define that delivery schedule. Instead of having to work around things that won’t be needed for another week or so, it’s easy enough to make sure each delivery arrives a day or two before the supplies are needed. If something slows down the project, you can always call ahead and delay the next delivery by a day or two.

Measuring Progress is Also Simpler

Those precise steps for basement remodelling also make it easier for you to track the progress. Without them, you can see that some things are done but may not be sure other tasks are fully completed. With a series of steps, it’s easy enough to check each one off as it’s finished. The result is that you always know how much of the basement renovation in Markham is done and how much work remains.

The Project Will Be Finished Sooner Rather Than Later

A defined series of steps for basement remodelling make it all the easier to start, complete, and move on to the next task without wasting any time. Thanks to the level of organization you bring to the project, it’s all the easier to keep everything on track and get the basement renovation in Markham finished on schedule. Since time is money, you do want to make sure everything is finished by the projected completion date.

Start work on the planning for the renovation today. Work with a contractor to identify each of the essential steps and how to arrange them in a logical sequence. Remember that each step may be further defined by arranging a series of sub-steps under each primary step. This type of advance work will provide benefits from the very first day and continue all the way to the completion of the basement renovation.

Penguin Basements Renovations (Basement Contractors)
906 Magnetic Dr
North York
ON
M3J 2C4
Canada
416-633-7180

5 Easy Tips That Will Help You Rent the Right Temporary Office Space

There are all sorts of reasons to look around for temporary office space for rent. Maybe your permanent office is being renovated or you are visiting a new city in hopes of establishing a base of operations there. Whatever the reason, it pays to look around and secure the right type of office space. Here are five simple steps that will help with the process.

Choose the Location Wisely

Location matters when you start looking into different AgileOffices rental options. The location should be practical in terms of what you hope to accomplish while you are in the space. That means some areas of town will be a better fit than others.

Maybe you need temporary space while your permanent office is being renovated or some type of repair to the wiring or plumbing is made. Think about finding a location that your employees can get to with relative ease. Next to making sure there’s enough space for everyone to work, ensuring they can find the place is important.

If you are coming to the city in hopes of winning new customers, temporary office space that happens to be near your prospective customers is always a good idea. For example, if you are focusing on clients who happen to be non-profit agencies, find space that’s in or near the part of town where most of them have a presence. It saves time getting to them and certainly makes it more convenient for them to come to your office if they like.

Determine How Much Space You Need

How much space do you need? You can arrange for office space for rent that encompasses an entire floor or involves only a couple of cubicles. Base the estimate for space on the number of people who will work out of the rented office and whether or not clients will be dropping by. You can bet there will be something among the different AgileOffices rental options that happens to be just right.

Confirm the Amenities and Features That You Are At Your Disposal

Most AgileOffices rental options include features and amenities designed to make your visit more comfortable and functional. Find out what is available in the way of temporary phone service, Internet access, front desk support, and even being able to use a shared break room. While you may not use all the amenities and features offered with the temporary office space for rent, it’s nice to know they are there.

Choose Something With Nearby Parking or Easy Access to Public Transport

Whether it’s just you or if there are several people sharing the temporary office space for rent, make sure there’s plenty of parking nearby. The last thing you need is team members having to walk several blocks just to get from their cars to their rented work cubicles. It also helps to have access to public transport nearby. When it’s easy to take transport that lets people out on the block as the building where they work, it’s tempting to leave the car at home and let someone else take care of the driving. You’ll find many AgileOffices rental options that do have parking adjacent to the building or at least have public transport stops close by.

Ask Questions About Security

Always ask what the office space for rent has to offer in the way of security. Do the doors lock using traditional keys or possibly coded key cards? Perhaps they require entering access codes that are issued to each tenant. Remember to ask about security cameras and the presence of security guards. If you are happy with the security measures as well as the other features, that building may be perfect for you.

Could you use temporary office space for a day, a week, or a month? If so, check into the AgileOffices rental options that are available for the time you need temporary space. There’s sure to be something that will have all everything you want.

Agile Virtual Offices – Office Rental, Executive Office Spaces Lease
CF Toronto Eaton Centre, Suite 2201 250 Yonge St
Toronto
ONM5B 2L7
Canada
+1 855-924-4539

Things You Need To Know Before Opting For A Home Equity Loan

As home prices continue to skyrocket, home equity loan is becoming a more accessible, more attractive, and genuine source of cash for millions of people. How does a home equity loan work? This should be the first question you should ask when opting for a home loan.

What Is Home Equity?

Home equity is a homeowner’s interest in a property. It can increase over time if the house value increases or the mortgage loan balance is ultimately paid. You’re considered to own your property, but if you were funded to buy it, your lender also has an interest in it until you meet the terms of the loan.

Getting funds against home equity can be a convenient way to access cash, but it also associated with risk, as millions of people living in American learned in the housing crisis of 2008. If you want to opt for home equity, it is ideal you ask yourself how does a home equity loan work? Here’s what you need to know.

  • It’s Getting Easier To Qualify

Since cracking down on credit after the housing bust, lenders are starting to loosen up once again. However, you will need to prove you’ve got the credit score and income to pay off the loan. Lenders want borrowers with a credit score of 700 at least and whose total debt amounts is less than 43 percent. The total HELOC and your mortgage balance can’t amount to more than 80 percent of your property’s value, although some lenders are letting consumers borrow 85 percent or more.

  • The Tax Rules Have Changed

Under the new tax law, the home equity interest is tax-deductible if you’re using the funds for home renovations on the property tied to the loan. The total amount of home equity debt plus your mortgage that qualifies for the deduction can’t exceed $750,000.

It makes sense to consider using HELOC for other purposes, such as college tuition or debt consolidation, but there’s no longer a tax benefit to doing so.

  • You’ll Need To Shop Around

Get a quote from your lender, as well as from at least three others, including a local credit union and an online bank. Use these quotes to negotiate to make sure that you’re getting the best deal. If you’re able to answer the question how does a home equity loan work?  It can help you to find reasonably wide variances in price, accessibility, interest rates, and terms from place to place across town.

Since more HELOCs are variable rate loans, you’ll need to know the current interest rate as well as the lifetime cap and the maximum possible rate you’ll pay if interest rates go up the hill.

 

 

  • There Are Real Risks Involved

On the off chance that you’re unable to make payments, your lender can foreclose. If you have a variable rate loan, your monthly payment amount will increase along with interest rates. Minimize the effect of the rate increase on your budget by paying off principal on time.

Furthermore, while home prices keep rising in recent years, there’s no guarantee they will continue to increase. If the housing market stalls and the value of your home declines, you could end up having a balance that exceeds the current market value of the loan. The more equity you keep in your property, the more secure you’re against market fluctuations.

 

3 Tips to Increase Your Home Value for Reselling

Whether you are a new homeowner or a seasoned vet, increasing your home’s value is a no brainer. There are several improvements you can make that will attract buyers like honey when it comes time to sell your current property. Check out these quick tips for increasing your home’s value and come up with a plan for renovations that include some items from the list. Start with a plan for the home value you want to achieve. Then meet with a professional home inspector to determine the value of your home as it stands. Finally, consider the cost of these upgrades and whether or not they will bring significant value to your home.

  1. Heated Floors

Heated floors are by far one of the best upgrades you can give your home regarding finding a buyer for it later. Buyers love to hear a home has heated floors because that means the home is a comfortable space to enjoy. Heated floors add more value to homes that are located in harsh winter environments. If one of the reasons you’re considering selling your home is because you hate winter, consider this upgrade for yourself. It might just make you fall in love with your house all over again.

  1. Home Elevator

For the aging baby boomer populace, living in comfort often means limiting themselves to a single-story home. That’s not always feasible, which is why the home lift business is booming. Home lifts are not the clunky elevators from the 80s that you’re picturing. Most modern residential elevators are custom designed and modular so that they can be moved. Pneumatic lifts like the elevators featured in The Jetsons are now a reality, too. They’re a bit more expensive than the traditional lift, but their quiet operation and ease of use makes them a very attractive option for homeowners. Home elevators add value to a home by making the upper floors of the home easier to access. A home lift makes moving furniture and accessing the upper floors a breeze. Baby boomers who refuse to live in multi-story homes because of those awful chairlifts will want to speak with a lift professional today.

  1. Upgrade Your Kitchen

If you have to choose just one house in your home to remodel to increase its value, choose the kitchen. The kitchen is an integral part of any home that sees use day after day. Prospective buyers will appreciate a modern, updated kitchen with new appliances. The cost for updating your kitchen might be minimal depending on how old your home is. Consult with a professional designer or contractor to determine your options.

As you can see, there are many additions you can make to your house to make it more valuable. These upgrades may even make you want to keep your home once they’re finished, if you were considering selling in the first place. While kitchen improvements are a sure-fire way to add value to any home, you can also consider looking at upgrading the bathroom, too, depending on your budget.

Do Condos Provide a Good Return on Investment?

When it comes to real estate investing, most people think of single-family homes or apartment buildings. But condos, with their low purchase prices, make real estate more accessible to first-time investors.

Some people start investing in condos and never stop.

The question is: do they provide a good return, or are you better off going with a different type of property?

Location is Everything

Location is everything in real estate, but if you’re investing in condos, it’s even more important. Condos perform better in some locations than others.

For example, an oceanfront condo in Myrtle Beach will likely have a steady stream of renters, and its desirable coastal location may help the value appreciate quicker than the average condo. In some cities, condos are the only properties that provide oceanfront views and out-the-door beach access. These same principles also apply to major metro areas, like New York City, Los Angeles and Chicago.

With that said, condos in major cities will naturally come with a higher price tag and may not be as easily accessible for beginner or even more experienced investors.

Consider All of the Fees Involved

When you invest in a single-family home, you have to consider property taxes, utilities and maintenance costs.

With condos, you also have to consider HOA fees. Yes, there are also many homes that come with HOA fees, but generally speaking, condos have higher fees. And these fees can increase over time. It’s not uncommon for HOA fees to be $300-$400 per month.

There is an upside to paying HOA fees. You no longer have to worry about maintaining the lawn, exterior of the building and the roof. If the community offers amenities, like a pool and gym, these can be major selling points for some tenants.

Some communities prohibit owners from renting their units, so you’ll need to go over the bylaws with a fine-tooth comb.

HOA fees may not be a problem if you can find a small community in which all of the buildings are for sale. If you were to purchase all of the units, you would become the HOA. But you’d also be responsible for maintaining the exterior, lawn and everything else that a conventional HOA would take care of.

Choosing the Right Unit

Some condo investments may be better than single-family investments. It all depends on the market, the location and the building. Certain units within a building are more desirable and will rent more quickly than others. These units will likely sell for a higher price than other units, too.

These are generally condos that are on higher floors, have better views and/or have a better layout.

Condos are often more liquid than single-family homes. Because of their lower price points, they tend to sell quicker, and there are usually plenty of buyers to go around. In many cases, these types of sales can close more quickly than with single-family homes.

It’s difficult to say whether condos provide a good return on investment. It ultimately depends on your investment goals, the individual unit in question and the location. At the right price and in the right location, a condo can provide a better return than a single-family home.