A multifamily home is defined as a building that has more than one unit. Each unit has its own separate kitchen, bathrooms, and utilities. These types of homes can be rented, owned, or be an investment property where a landlord collects rent.

A multi-family home is a more economical way of living. Because there is less privacy and tenants or owners are living in proximity to others, the cost is usually less. If you live in a multifamily home, you may not be responsible for things like exterior maintenance or landscaping and lawn care. The landlord may hire an outside company to take care of these tasks. 

Multifamily Home Designs

Multifamily homes come in a variety of designs. You may pass by houses that more than one family lives in and don’t even realize. Types of multifamily dwellings include:

Duplex

Condominiums

Apartments

Townhouses

These designs could have anywhere from two families to hundreds of families living in them. Duplexes, condos, and townhomes tend to have owners rather than renters. Apartments are usually seen as a property type that is leased. Some properties are stand alone while others are part of a complex. Your choice of where to dwell or invest in a multifamily unit all depends on preference. 

How Costly Are Multifamily Properties?

For those who don’t like to deal with yard work or maintenance, living in a multifamily unit could be a great choice. You may have to pay monthly HOA fees or other maintenance costs, but everything is taken care of for you. These fees may even cover maintenance inside of your unit. 

If you are investing in a multifamily unit, the costs can get a bit more tricky. While you will know the cost of the mortgage and insurance, the monthly expenses to maintain the property are always unpredictable. These costs all depend on what in the property is under warranty and how old the property is. Older homes will need things like new furnaces and roof replacements. It can be tricky to know exactly how much to charge for rent to actually make a profit as a landlord. 

Keep in mind that if people are renting from you, you’ll need to replace things like appliances, carpets, and flooring each time a tenant moves out, and a new one moves in. It can also be challenging to deal with tenant problems on a day-to-day basis. Be sure you know what you are getting yourself into if you decide to invest in a multifamily home. 

Overall, multifamily homes can be a great housing option for many families because of the simplicity and cost-effectiveness.               

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The real estate market is always changing since there are so many people who want to get the best for their buying potential. If you are on the market and want to know what to expect from it, the following are the home buying trends that will impact the real estate market in 2019.

Home Buying Trends

First, the affordability of houses will change in 2019. Since 2008, potential home buyers and first time home buyers have been cautious on making a purchase. In 2019, the market shows that affordability is to reach a good level for these first time home buyers and potential home buyers. 

Second, home prices and sales trends would continue to fluctuate based on zip code and the neighborhood. Home prices often vary. They are also very different between ZIP codes, communities, and blocks. This trend will continue in 2019.

Third, mortgage rates are going to come up. Market projections show that by mid-2019 mortgage rates will rise another 0.5%. As the prices go up, current homeowners should expect lower mortgage rates. This fact may lead to home sellers getting dis-incentivized because mortgage rate growth and home price growth will affect the market into a shift. Fortunately, there are still potential home buyers who are willing to buy with mortgage rates at 6% to 7%. 

Finally, projections show that the impact of the recent Tax Cuts & Jobs Act (TCJA) would not be as significant as people are expecting. 

Home Selling Trends

When it comes to home selling or selling a lease, the market is very competitive. There are new trends that everybody should expect.

First, with the growth of the housing market, apartment landlords and builders will get more engaged in the so-called “arms race for new amenities.” Every developer would shift focus from maximizing space from a more focused building scheme towards maximizing space to give way for amenities.

Another change that the real estate market should expect is a continued rise of artificial intelligence as it makes its way towards the real estate market. Building management and design would also get affected by the increase of the real estate market.

Now that you know the home buying and home selling trends that will impact the market in 2019, contact a real estate agent today and see if it's a good time to make a move.

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