Given the increase in population, real estate investments have also seen a growth in demand, especially for multi-family housing. Why is this? Because as the name suggests, it aims to house more than one family on the same plot of land.

Although the second-hand market continues to be highly sought after, more and more people are considering this type of investment, especially in the new-build segment. However, the lack of information about what a multi-family dwelling entails and what aspects need to be taken into account before building it, means that this idea is losing momentum. So here’s some good news: in this article you’ll find some answers to your main questions, in a light and uncomplicated way.

Whether for your own use or as an investment, find out what multifamily housing is and what its advantages and disadvantages are. The aim is that, in the end, you can make the best decision for you!

Multi-family housing: what is it?

In short, a multi-family home is a building that houses several units on a single space, plot or piece of land. In other words, this type of building allows several families to live in the same development.

They can be buildings, lofts, gated communities, townhouses, semi-detached houses or housing estates.

How important is this type of housing in society?

How important is this type of housing in society?

Throughout history, people have had to find ways of surviving, developing and enjoying themselves. As such, individual, single-family and multi-family dwellings have emerged. However, the design of houses has changed due to the need to keep up with the growth and development of cities, adapting to the reality of the population living in them.

Nowadays, it’s normal for multi-family homes to gain more and more market share, since it’s possible to house several residents on a single plot.

As a result, it is not difficult to conclude that buildings dominate large cities, being nothing more than housing models that accommodate a greater number of families on the same plot of land.

What are the advantages and disadvantages of investing in multifamily housing?

As with other properties, when you buy a multi-family home you are making an investment, so it’s important to do it calmly and wisely. After all, if you buy it at a reasonable price and in a good location, it could double in price in a few years’ time.

Despite being a good investment when well planned, this type of construction is not without its advantages and disadvantages. That’s why it’s essential to take them into account before going ahead with your purchase, so that you can make sound, informed decisions.

Advantages of multi-family buildings for those buying a fraction:

• The costs relating to maintenance and improvements are distributed among all the condominium owners according to the permillage, which becomes a financial advantage compared to single-family housing where these same costs are borne individually;
• Security: the presence of more than one family in the same place increases the feeling of security. In addition, there is always the option of using 24-hour security services to reinforce this feeling of tranquillity;
• Possibility of using different spaces: in the case of condominiums, in addition to the common areas, there is the possibility of building spaces such as a swimming pool, gym, party room, among others.

Disadvantages of multi-family housing

When it comes to the disadvantages of investing in multi-family housing, the main one is the cost. Why? Because, compared to other options, multi-family construction requires a larger investment, since the aim is to build more than one home.

In order to combat this less favorable aspect, it is important to define the available budget from the outset and draw up a plan to recoup the investment made. If you need help on this subject, we recommend you check out our article on building a house.

I have a multi-family house to renovate. What should I do?

Although it’s not very common, the reality is that you can inherit a multi-family residential building, but you may need to carry out renovation work. If you are interested in investing, either to earn additional income or to create a new source of revenue, it is essential to consider rehabilitating the property.

Who can I turn to for my multi-family home?

As you can see, there are good reasons to invest in multifamily housing. Whether you’re building or renovating, it can be an excellent way to secure additional income. However, for the project to be successful, regardless of its type, it is crucial to choose a qualified team to carry out the necessary interventions.

Need help moving forward with your project? Contact us for more information or to get a quote.