If you are buying a home and looking at options to manage your costs, then you might consider the option to purchase a multi-family home. While there are benefits that can help you manage your spending, you need to evaluate all of the pros and cons and how these factors will affect your family.
What are Multi-Family Homes?
Purchasing a property that falls under the category of a “multi-family” home means that you are buying a property that is connected to other homes with shared walls. For example, a condo building is a multi-family solution that gives every family a private entrance and living space, but the layout of the condos could be similar to an apartment building.
Townhomes are another way that multi-family homes are built. These properties are often placed side-by-side, so you will be sharing one or more walls with the neighbors. Another similar example is a twin home or duplex where you own half the property, with another homeowner carrying the mortgage on the other half of the home. Or, you might own the entire property and rent out the other half or a mother-in-law apartment.
These multi-family housing options are increasing in demand due to the rising cost of living. People want a way to enjoy homeownership without spending a lot of money on a big mortgage.
Pros of Multi-Family Homes
Here are some of the most obvious benefits that are available if you choose to purchase a multi-family home:
- Faster mortgage payoff if you are renting a portion of your home. The income from the rental increases the cash flow that can be put towards the loan balance.
- Buying real estate properties helps to build your assets and wealth. If you can pay the mortgage off in a short time, then the equity can be rolled into another investment property. These strategies can add up over the years, helping you prepare for retirement.
- Tax benefits are available when you own a home instead of renting. Talk to your accountant to learn the best strategies for taking advantage of the tax write-offs that can be used.
Cons of Multi-Family Homes
There are also a few drawbacks that should be considered before you buy this type of property:
- Sharing walls isn’t always preferred if the family wants to maintain a quiet living space without listening to the neighbors throughout the day.
- Smaller yards are common. You might not have a private outdoor area because the yard is often shared by all of the families in the community.
There are pros and cons to the purchase of every type of home. The most important thing that you can do is evaluate your goals and the needs of your family. Then, work with an experienced real estate agent to find a home that matches your needs. For more information, talk to DUFFY Realty by calling: (678) 318-1700