Just like we dream of living a comfortable active life where they earn, spend, and enjoy, there’s a dream for the relatively less happening life that comes after that. In that life, real estate investment in multifamily units can be your saving grace.
Although multifamily units are becoming more common than ever before, some people are still unaware of what they’re about and possible benefits of investing in them for later years. This article will be your guide to becoming a part of this market and earning the most out of it.
What Are Multifamily Units in Real Estate?
You may recall these units from the times you drive around the city, or you may even be living in one right now! Your apartment or apportioned house comes under the heading of a multifamily unit.
Essentially, a number of residences where different families/owners live which are tied together in the form of a building or a collective unit are referred to as multifamily units. If you own a unit, you are the sole owner of that particular area you purchased, but you share the commonality of living in the same complex/area with a number of other families.
Types of Multifamily Units
There are 4 types of multifamily units which legally exist and are recognized under the heading of a multifamily residence:
Apartment complexes: These are buildings where there are a number of different units which are sold separately. In addition, these are the most common type of multifamily units out there.
Townhouses: Houses which are attached to other houses. As suggested by the name, they are Ďtowns of houses’.
Apportioned Houses: These are basically houses which have a number of floors on them, and each floor is owned by a different family. Each of the owned floors is referred to as a portion. These are different from townhouses because they usually have a common entrance.
Duplex: This is a duo of houses which exist on the same land without a common area in between.
When and Why Must You Invest in This Market?
The multifamily market boasts the following attractions:
1. Financial Security
When you reach the age of retirement, the income you receive from these units can be very useful to contribute to the household or your own living.
2. Minimal Risk
These units are usually a lot less expensive compared to bungalows constructed on plots, so the amount of risk you carry for it not being a good option for renters is reduced.
3. Resale Value
In times of rising home prices, you will note that people are moving towards convenient housing schemes like multifamily units, so if you want to sell a unit you own, you can do that at a higher price with a lot of demand because it is continual.
4. Many Choices
Choosing an apartment to invest in, for example, is made a lot easier by the availability of commercial facilities such as grocery stores and entertainment centers. So unlike bungalows, you can make a better assessment based on the inside of the house and what lies outside.