5 Reasons To Invest In A Multi Family Home
- March 18, 2020
- by John Yu
What are some reasons to invest in a multi-family home?
- High cash flow
- Better management
- Increased demand for renting
- Good potential to appreciate
- Easier to finance
If you’re a keen property investor, you’re always looking at various avenues to accumulate your profit. Luckily for you, you can achieve this by investing in a multi-family home in the Philippines. While the traditional forms of investing in a house, townhouse, or an apartment are still very much in high demand, newer and more unconventional forms of property investment have also proven to be beneficial.
Simply put, a multi-family home is described as a singular building that houses more than one family. The building may contain up to four families, depending on the size of the property. It’s typically understood that each of the families resides in separate units within the building.
Diversifying your real estate investment options is important in this day and age. Continue reading to learn more about the several advantages you can get from investing in a multi-family home.
High cash flow
The primary goal of investing in a property is to derive a large sum of income from it. This is one of the driving forces behind real investors who are keen on searching for many possible investment alternatives. As such, one of the benefits of investing in a multi-family home is the high cash flow you can potentially earn from it.
Think about this kind of situation: with the rising popularity of rental housing, more people have begun renting out their home spaces in order to generate income. Adopting this idea into multi-family housing, you can generate a faster stream of income simply by the presence of many different families living inside separate units in your multi-family building.
Depending on the lease contract that you have come up with in agreement with each family, you are able to consistently get rent payments from each of them.
With a multi-family arrangement, you wouldn’t have to worry about a family vacating a single unit since you can still pool your income from the remaining families or tenants.
Though this is arguably one of the most common types of real estate investment practices, managing different rental properties that are dispersed throughout the country, or even just the Metro, can be difficult.
If you’re residing within Metro Manila, for example, and you’re handling separate rental properties in Laguna, Cavite, or Tagaytay, it can become inconvenient for you to have to check up on these properties regularly.
Luckily for you, you won’t experience the same situation when it comes to multi-family home investments. The reason for this is that the building is just located in a single area. Visiting and managing the site, as well as checking up on the tenants for whatever purpose you may require won’t be a cumbersome task because they’re all simply just residing in one space.
Increased demand for renting
With the proliferation of online platforms for rental properties, renting has become easier and a more popular way of accessing short-stay accommodation types. From the perspective of the investor, rental properties are a good way of earning money.
If you’ve ever had to book accommodation in Tagaytay, for example, you would notice a large number of available properties that require you to pay an affordable sum of money. Similarly, a multi-family home can arguably be considered a more viable and popular option for families or individuals who are not keen on staying in a single area for long durations.
You wouldn’t have to worry about leaving one unit in your multi-family building vacant once the lease for the previous tenant has expired. You’d still be able to get many expressions of interest from families who prefer renting units over total homeownership.
Good potential to appreciate
Similar to other kinds of real estate investment properties, a multi-family home has good potential to appreciate in value over time.
While the value of appreciation can be determined by many other factors such as location, accessibility, quality of the property, convenience, and the like, there are simple considerations you can think about before you begin investing in multi-family homes.
A good place to invest in a multi-family home is an area where there are dense populations of people. Your potential tenants should be able to easily access different modes of transportation which are located near your property. On the other hand, practicing proper unit maintenance will help your multi-family building increase in value over time.
Easier to finance
Multi-family homes are typically considered to be low-risk investments. This is due to the factors which have already been mentioned above.
With low-risk investments, banks and mortgage lenders are more likely to finance your multi-family home. Furthermore, you can just as easily get help from a licensed real estate broker from Property Source PH to give you tips on how you can invest in this kind of property.
Investing in a multi-family home in the Philippines is definitely something you should consider in your real estate investment endeavors because of the many highly-desirable qualities and advantages that it can present to you.
With the right help from your licensed real estate broker, you can take more useful steps in beginning your journey of multi-family home investments.
Click the button below to get in touch with your favorite real estate brokers, and to learn more about this type of property arrangement.