Are you looking for a good investment? Do you want to invest in a house? Are you in a dilemma whether you should go for single family home or multi family home? Here we are to help you.
When you consider single family home (1 or 2 bhk) and small multi family home (3 or more bhk), for investment purpose, though you can afford for a bigger house, it is always better to go with a single family home.
Here are some facts why a new investor should go for 1 bhk or 2 bhk.
1. Expenses :
A house to maintain it neat, it needs some extra attention. This ofcourse charges your wallet. When you buy only for investing, it is better to go for a small house as the expenses on repairs and replacements are minimum. Advantage is that for a smaller house, tenants usually take interest and initiative on these small works.
2. Vacancy :
Tenants usually stay for longer in small homes than in bigger homes. Also, single family homes rent more quickly than multifamily ones. This means, fewer days actually your house is sitting vacant.
3. Tenant Interaction :
This may not seem like a big deal, but it can be. In a single family home, you don’t have to worry about the tenants getting along. In a small multi family, it is tough to have understanding and cooperation. This might affect your home and might result in more repair works or association problems and discipline problems aswell.
4. Pride of ownership :
We know that our tenants love the fact that they have a home. It may not be theirs, but they treat it as their own. They keep it clean. They love to stay in it as they hold on many memories. Ofcourse, we have some who don’t. But the ratio is on lower side. But taking the ownership and maintaining the house well, leaves us happy and tension-free
5. Sale of the property :
The best thing about single family home buyers is that, it appeals to the largest amount of buyers. Apart from retail buyers, investors would be interested in the property as well.
It is always, the demand for 1 bhk and 2 bhk is relatively more when compared to a 3 bhk and a 4 bhk, irrespective of the area and the luxury.
Hence, as a new investor, you will have fewer headaches with a smaller home and more profit in future.