Multi-Family Units: Bigger is Best when it’s Time to Invest

The latest investment and family-choice trend when it comes to home buying in Ottawa has been the trend of multi-family units. 
A multi-family unit simply means that the property investment is a house where multiple housing units are within one complex. These multi-family units are divided into separate living spaces, such as a basement apartment, smaller apartments etc. This trend has made housing become more and more of an affordable option for all types of families, as well as an investment plan for the future.

There are a lot of reasons that this trend has become more popular in Ottawa. As an investment opportunity, these multi-family units can be rented out either with the purpose of a multi-family unit, or with the intention as separate apartments contained in one structure. Multi-family units have the potential for better cashflow, as there are more units purchased for a slightly lower than typical price. Having multiple units also opens up a broader range of tenants; as the cost per rental unit is typically lower than renting a single home. Multi-family units may cost slightly more than a traditional apartment building, but it is easier to finance for a multi-family unit as there is consistent cash flow each month, compared to a single family home. As an investment property as well, there is the possibility of living in one of the apartments, while your tenants apartments cover the mortgage and associated costs. However, there is a smaller buyer pool when it comes to re-sale on these properties. There can be more maintenance required based on wear-and-tear, as well as tenant troubles depending on the tenants you’ve selected.

The changing trend, seeing families go away from the traditional single home to favouring these multi-family units as it is a fantastic way to stay close to aging parents, grandchildren, and create a “community” when it comes to raising a child, as the grandparents etc. can be there as childcare providers during the day. There are two main demographics when it comes to multi-family units, which are “empty nesters” looking to downsize searching for multi-family units, as well as millennials, looking for an urban lifestyle. Multi-family units can be duplex, triplex etc. or seen in older buildings where a large house has been divided into multi-family units, to allow for separate entrances.

These multi-family residential units are becoming increasingly popular as the rising apartment renting lifestyle becomes more costly for the average family. Multi-family units are generally designed for those seeking an urban lifestyle, but are not in search of unaffordable “luxury”, found in downtown high-rises. Moving forward within the real estate industry, we see trends are about creating possibility, and 2/3 homes built today are designed as multi-family homes, which rose over 25% since the mid-2000’s. If you’re interested in purchasing a multi-family unit as an investment property, or are hoping to find one that will suit your family’s needs, be sure to contact a realtor near you for all the information you will need to put your family’s best foot forward when it comes to multi-family units.