The urban landscape is taking over, and as cosmopolitan spaces dominate your quaint, single-family neighbourhoods, multi-family real estate is now the hottest commodity in today’s housing market.
Living in a duplex may seem like a far cry from the white, picket-fenced house people imagine when thinking of the traditional home, but it’s the new fantasy for modern homeowners due to its extensive benefits.
But what exactly is Multi-Family Housing?
Unlike single-family properties, multi-family housing refers to buildings like a duplex, townhome, or apartment complex, all of which are residential spaces with more than one unit. Each unit comes with its own essential utilities, though a multi-family house is typically characterized by having up to four units or fewer. Anything more than that number will constitute a commercial property.
Who Buys Multi-Family Housing?
Since multi-family homes allow different families to live on the same property with separate and completely independent spaces, it’s often the best choice for multigenerational families. It’s also a great investment property with high demand, making it appealing to novice or seasoned real estate investors who want to diversify their portfolios.
Not to mention the additional rental income you can add to your earnings makes multi-family housing one of the most reliable “hacks” investors can use to build a lucrative career in real estate.
What are the Benefits of Investing In a Multi-Family Housing?
Advantages of a Multi-Family Home
- Steady Cash Flow – you can earn a steady income on the side from your tenants, making it a stable side hustle that can offset your mortgage payments for the multi-family housing and your own!
- More Pool of Tenants – with more units under your wing, you have more options to rent and fill the space, all while having an independent unit for your family.
- Greater Control Over Property Value – seeing as multi-family homes only deal with four or fewer units, it’s easier to stay on top of the repairs and maintenance checks. Living in one unit also gives you more control over the necessary renovations, upgrades, and property value.
- More Tax Benefits – running multi-family housing means you can write off most of the expenses for repairs and even your mortgage’s interest payments as a business expense.
- Increase Your Investment Portfolio – seeing as you’ll be managing multiple units, multi-family housing can do wonders for creating a dynamic and expansive investment portfolio.
The Bottom Line: Knowing What to Expect Before Settling Down In a Multi-Family Home
It’s becoming the go-to choice among younger generations since multi-family homes are a bang for the buck choice in the real estate sphere, though it comes with its own pros and cons. The list above explores the unique advantages of owning multi-family housing and what makes it a lucrative yet safe choice compared to other real estate investments.
How Can We Help You?
Finding and buying a home can be tricky, especially when you put your finances into the picture. Fortunately, with the help of Ottawa Mortgage Services, buying your home for the first time won’t be such a pain.
Our expert mortgage agent in Ottawa Mortgage Services helps first-time homebuyers discover the different possibilities of home buying, obtaining pre-approval letters, providing assistance for refinancing, offering debt consolidation, and more. Looking for a mortgage? Apply online today!