Q: What motivated you to take on this new-build project?

Farouk: Primarily, it was an investment opportunity. Burnaby recently revised its bylaws around laneway homes, which shortened permit timelines compared to Vancouver and allowed a larger build size. That shift made the numbers more feasible. Plus, the Capitol Hill area has incredible views, so I felt there was real potential for a premium property that would appeal to buyers wanting both rental flexibility (basement suite + laneway) and a beautiful, modern home.

Why does motivation matter? Learn more on our Getting Started page.

‍Q: How did you plan your financing and budget? Were there any unexpected costs or challenges along the way?

Farouk: Reflecting on my journey, I’ve learned that careful planning and flexibility are key when it comes to budgeting and financing.

• Know your costs inside out – I tracked every expense in a detailed spreadsheet, breaking down costs into categories like labor, materials, and design fees while comparing them to real-time quotes. This gave me a clear financial picture at all times and helped me make informed decisions on where to invest or adjust. Staying organized like this made a huge difference in keeping the project on budget and avoiding surprises.
• Plan for surprises – A contingency fund was essential. Unexpected material price fluctuations, last-minute design changes, and hidden fees can quickly add up.

While I did explore options like construction loans and private lending, many lenders were hesitant, and another challenge was the lack of strong comparable sales in my neighborhood. Many lenders relied on broader Burnaby benchmarks, which didn’t fully reflect the unique value of my Capitol Hill property. While I ultimately chose a financing approach that worked best for my situation, the process gave me valuable insights into structuring deals and helped me better understand how to secure financing for future projects.

One of the biggest lessons was that there’s always something you don’t see coming - whether it’s a permit fee, a design tweak, or even something as small as needing to remove a bird’s nest! Material costs also fluctuated, especially for lumber and cement, so budgeting an extra 10% for contingencies was crucial. In the end, the experience helped me become much more confident in planning and managing project finances.

Exploring financing options? Check out our Financing Options page.

‍Q: Did you work with a financial expert, builder, or consultant to manage budgeting and cost tracking? If so, how did they help?

Farouk: My builder, Theorem Developments, was invaluable throughout the entire process, from managing the budget to navigating city permits.

We had monthly budget check-ins where they walked me through actual costs versus estimates, flagging any potential overruns early. Their insight into pricing and material costs also helped me make informed trade-offs - whether it was choosing alternative finishes or adjusting the project scope to stay within budget.

When it came to permits, Theorem took the lead on applications and handled all communications with city officials. That was a huge relief, as it allowed me to focus on design choices and big-picture decisions rather than dealing with municipal red tape. One major benefit of having an experienced team was that they stayed proactive in their conversations with city staff. Through this engagement, we discovered that the laneway unit could be treated as a separate dwelling rather than just an accessory unit to the main house. This opened up new possibilities—potentially increasing the property's value, providing more flexibility for financing, and allowing for a more strategic approach to rentals or future sales. Having a builder who not only executes but also advocates for the best possible outcomes made all the difference.

Looking for tools to help manage your project? Check out our Resource Directory.

‍Q: Your project is almost complete—how long has the process taken, and how do you feel now that it’s nearly finished?

Farouk: It’s been a long journey—construction started in January 2024, and now, just over a year later, we’re wrapping up the final touches like landscaping and rooftop stair installation. It’s been a steep learning curve, but I’m really happy with how it’s turned out. The main house has stunning mountain and water views, and the laneway suite adds great flexibility for rental income or guest space. Seeing it all come together, I can confidently say this was the right investment. I’m planning to sell once it’s finished, but I won’t lie—after walking through the house and seeing the finished product, part of me wants to stay!

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Q: Any other advice for first-time builders or ADU developers?

Farouk: Other than knowing your costs and financing and choosing the right builder, like I mentioned earlier, I’d say be prepared for the unexpected.

1. Expect Delays – Weather, supply chain issues, or small design changes are inevitable. Set realistic timelines and build in buffer time.
2. Location & Permits Matter – Some cities are more permit-friendly than others, and that can make or break your project’s viability. Do your research early to avoid surprises.

At the end of the day, staying flexible and well-informed will make the process much smoother!

Inspired to build your own ADU or multiplex? Learn how with our Step-by-Step Guide.

This profile is inspired by a real investor’s experience. Certain details have been adjusted for clarity and readability.

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