Posted on: 28 December 2016
When shopping for a first home, many people keep their eyes on single-family abodes. However, there are many good reasons to consider purchasing a multi-family property, such as a duplex. Here are two reasons why you may want to invest in this type of real estate as a first-home option.
Increased Flexibility in Living Arrangement
Possibly the primary reason why you'd want to invest in a duplex, triplex, or quadplex is the amount of flexibility you'll have with the living arrangements. You could go the traditional route and live in one of the units while renting out the other(s). You'll get help paying the mortgage and other assorted expenses (e.g. utilities, cable), while also enjoying numerous tax benefits, such as writing off the mortgage interest for your half of the building and the assorted costs associated with managing the other half.
However, multi-family properties are also good for people opting for non-traditional living styles. For example, because of poorer income prospects and other societal issues, many millennials are returning or remaining home, resulting in multiple generations of people living under the same roof (i.e., parents, children, grandchildren). A multi-family home like a triplex can provide more space for privacy while also letting the family pool their resources to mitigate living costs.
Long-Term Income Source
If this is your first time buying a home, it's important to realize you probably won't keep it for very long. It's not unusual for homeowners (especially first-time owners) to pack up and sell their homes after a few years. There are a number of reasons for this, including outgrowing the space and pursuing job opportunities in other areas. While many people sell their homes to purchase another one, you can keep your multi-family building as a rental property to earn passive income. Depending on how much you owe on it, you may even be able to leverage its value to purchase your new home.
Multi-family properties have several distinct advantages over single-family properties when it comes to earning income. There are more spaces to rent out, which means there's less of a chance the property will sit completely empty for long periods of time. You can also house more Airbnb guests, increasing your opportunity to earn cash on the property.
While buying a multi-family property as your first home isn't typically the traditional thing to do, it can provide you with numerous benefits in the short and long term. For more information about these issues or assistance with locating the house of your dreams, contact a real estate office in your area.Share