Multi-family homes refer to two or more attached units inside one structure. The most common types of Multi-Family Homes are apartment buildings or condos. However, there are some other types, too, such as duplexes and townhomes. These could also be considered multi-family homes due to having two living spaces on separate floors inside one building.
There were around 5 million multi-family homes in Canada back in 2018. And the numbers are projected to rise to 6 million by 2025. This is due to how affordable they are compared to owning a single-family house.
They're also easier to maintain with both owners living in the same area and often splitting costs down the middle. They can also be convenient, allowing for shorter commutes into work or school if they're located near commercial areas.
Some Common Types of Multi-Family Homes in Canada:
Here are a few common types of multi-family homes in Canada.
Condominiums
Condominiums are owned individually but part of a condo community. They're usually built with the expectation that the building will be well maintained and require less expense from owners in terms of upkeep or repairs.
Townhomes
Townhomes also share maintenance expenses and use common areas for gardening and laundry. Homeowners still have their personal space, which means it's more private than living in an apartment building.
Apartments
These are two types of multi-family homes that are found within apartments buildings. They refer to individual housing units on different floors, while interior walls divide them into private spaces. You don't get any outdoor space when you live in an apartment, but you share communal areas.
So there are plenty of benefits to owning a multi-family home over owning a single-family house. However, the real question is whether they're good investments at this point. Additionally, it's worth pointing out that each type of multi-family home varies by location and market conditions.
Now to answer the question, "If multi-family homes are a good investment right now," let's look at all the aspects of these residencies.
Multi-family Homes are Typically Low Maintenance Residencies
Multi-family homes offer lower maintenance costs per square foot. This is because the part you'll be responsible for is half of what you'd usually pay. Like with single-family homes, if any problems occur, it's important to fix them before they become more expensive to fix. This is like repairing plumbing, fixing roofs, and replacing appliances can save on even higher costs.
Multi-Family Homes are Usually Well Maintained by Property Managers
Many multi-family homes are always well cared for because property managers make sure the properties under them look good all year round. If there is ever an issue with one of your units, they'll notify you right away so that they can find a solution together. Having live-in landlords also means that you'll have someone on the property to keep it in working order.
Multi-Family Homes are Convenient for Busy People
You can get more bang for your buck when you buy a multi-family home because typically, they're smaller than single-family homes but rent for slightly higher prices. This is because two rents are coming into one building. With this comes many benefits, too. For example, not worrying about shampooing carpets or mowing lawns makes multi-family homes even better.
Multi-Family Homes are Suitable for Investment
You can rent out your multi-family home when you're not using it. This means that when you're on vacation or want to take extended trips, your property is still bringing in income while doing nothing. Since the costs of owning multi-family homes are lower than single-family homes, many investors think these residencies are great investments for passive income.
Additionally, there are other things to bear in mind when it comes to owning a multi-family home, such as:
∙ The cost of putting your property on the market. Since there's a larger inventory of these homes available than single-family homes, you have more options for selling them. The downside is that you'll take a hit on the price since buyers will be shopping off a lower budget.
∙ Having multiple owners means you'll have to cooperate with others and cooperate schedules if maintenance issues arise. This could sometimes mean having less control over repairs or budgets.
∙ Some multi-family homes are more likely to be victims of crime. However, there are some things you can do to prevent this by adding security systems and using lighting techniques that discourage people from entering your property.
∙ Having a well-maintained property that's close to everything you need is ideal. You'll also have a pool of renters from which to choose, meaning you could negotiate their rent up according to the market.
∙ Plus, you can increase your chances of success if you consider investing in new condo developments in Vancouver or pre-construction condos in Vancouver.
Make sure to do your research before investing in any multi-family home, and always invest smartly. But the question is, how do you ensure you’re making the right decision? Since several factors are affecting your investment in a multi-family home to be beneficial, then how do you ensure this?
This is where Novesta comes in. We are one of the top building and construction companies in Vancouver. You cannot go wrong when working with our associated builders and contractors in Edmonton, either. And if you are interested in affordable custom homes in Alberta, you can also consider our expert realtors. Contact us today for a detailed consultation.
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