One of the shared living models on the rise in Québec is the multigenerational (or intergenerational) home. This housing option allows family members—grandparents, parents and children—to all live together under the same roof or in separate quarters within a single residence.
It’s a lifestyle with undeniable benefits, but also challenges that must be carefully considered before committing.
The Advantages
Shared Household Chores
If all family members are in good physical condition, splitting household chores can be an appreciable advantage. Whether its lawn mowing, cooking or assisting the kids with their homework, having more helping hands to share the load makes life easier for everyone!
Familial Support and Assistance
The ability to foster strong relationships is one of this co-living arrangement’s best facets. Young and old alike benefit from a close-knit environment that deepens family ties. Aging parents who wish to remain independent may equally feel more secure.
Optimal Use of Space
There is no wasted space in a multigenerational home: every family member has their own private room while having access to common areas like the kitchen, living room or backyard. Maximizing land use by reducing the number of individual dwellings and optimizing a building’s resources therefore addresses modern sustainability concerns.
Financial Benefits
- Sharing Expenses
Multigenerational living allows family members to split expenses, a potentially significant financial advantage. All occupants contribute to covering fixed household costs, like the mortgage payment, municipal taxes, power bills and maintenance fees, improving everyone’s cash flow.
- Easier Home Financing
Sharing expenses means young adults who can’t save for a down payment or who don’t have a large enough budget to purchase a property on their own can still become homeowners.
- Tax Credit for Caregivers
It’s quite common for the adult children to become their aging parent’s caregivers when sharing a home. In some cases, they may be eligible for certain tax credits.
- New Home Purchase or Renovation Tax Credit
No tax credits or grants exist specifically for multigenerational home construction. Nevertheless, some Québec and Canadian government tax credits may apply, such as the partial GST and QST rebate for new home construction or purchase, or for major house renovations. This tax credit makes converting a conventional residence into a multigenerational property, or having one custom-built, far more attractive.
The Drawbacks
Lack of Privacy
Privacy can be hard to come by with several generations under the same roof, especially if the space is inadequately partitioned. Conflicting schedules, differing lifestyles and even noise can cause friction.
Initial Building or Renovation Costs
Despite the benefits of expenditure sharing and the available tax credits (see the advantages section above), the initial cost to adapt a home to meet the needs of a multigenerational household can be steep. Creating a secondary dwelling unit or reconfiguring the layout to provide more privacy and maximize functionality often requires extensive and expensive renovation work. This level of investment may present an obstacle for certain families, especially if they must also comply with zoning bylaws or municipal restrictions.
Less Flexibility than Expected
As a matter of fact, some municipalities impose strict zoning rules for multigenerational homes, which may thwart some homeowners’ ambitions.
Double the Tax?
Multigenerational homes can be subject to more complex tax rules as well. For example, if the property is divided into two distinct dwellings, it may be liable to double taxation regarding municipal and school taxes.
Principal Residence Sale Tax Exemption Ineligibility?
Generally speaking, the sale of a principal residence qualifies for a capital gains tax exemption, but this rule doesn’t automatically apply to the sale of a multigenerational home.
Don’t hesitate to contact a real estate broker to get the full picture!