Advantages of Owning & Living in a MultiPlex
Are you thinking about buying a multiplex as an investment or as a place to live? Buying a multiplex is comparable to buying a house. This being said, however, unlike when you are purchasing a single-family home, there are additional aspects you need to carefully examine before making your investment in a MultiPlex.
Duplexes, triplexes, and even fourplexes are all varying sizes of a Multiplex. The cost of this kind of property is perhaps its greatest benefit. These properties have grown to be quite popular among home buyers on a tight budget. Those wishing to invest in an income property seeing as they are more cost-effective than a single-family home.
Many aspiring homeowners attempt to be innovative to carry out their projects in a highly competitive real estate market where there are several stakes associated with property ownership. Being the owner-occupant of a plex in this situation could be something to think about. Below, learn about the most lucrative construction styles, along with the pros and cons that come with them!
What is a Multiplex?
A multiplex, commonly referred to as a plex, is a rental structure with two or more units such as the aforementioned duplex, triplex, or fourplex. Residents of Quebec who buy a plex often live in one apartment while renting out the others to cover the mortgage for extra income, other owners merely rent out all of the units.
In comparison to other kinds of investments, buying a plex is a real estate investment that has a secure value. It’s always important to diversify your investments and seeing as a real estate investment increases in value over time this is a sure way of securing your financial future.
Purchasing a triplex or duplex is the best way to become an owner-occupant with the least amount of trouble. Beyond this point, the duties and dangers of tenant disturbance increase along with the number of flats.
Any person who owns a plex or a building with five or fewer units and has made one of those units their home is known as an occupying-owner. In this situation, they lease out the other apartments in an effort to turn a profit. Thus, the rent helps them in covering the mortgage loan, property taxes, and maintenance costs.
The minimal down payment for a plex is often between 5% and 10%, which is less expensive than the down payment for a single-family home. The number of units and building value are aspects that will primarily affect the amount of the required down payment. The purchase of mortgage loan insurance from the Canada Mortgage and Housing Corporation (CMHC) may be necessary for particular situations. Speak with a mortgage broker or financial advisor to better your understanding, then base your choice on your situation.
Advantages of Owning a Multiplex
There are many excellent reasons to invest in a multiplex. If you choose to rent out an extra unit, rent payments will enable you to pay off your mortgage a lot faster! You may also try to take advantage of some tax-deductible expenses.
Long-term Advantages of Buying A MultiPlex
In Quebec, particularly in Montreal , there is a significant desire for rental properties due to the long-term advantages. To lower your living costs and make money from the other residences, you can live in one of the units.
Meanwhile, the property’s resale value continues to rise and you are free to sell for a larger sum when you find the time is right.
To invest in real estate is to ensure future financial security. It has been known to happen that when becoming a landlord, you can live comfortably without having a regular 9-5 job. This being said however, your responsibilities change and you have a duty towards your tenants versus your boss.
Tax benefits may apply if you purchase a plex. Be sure to speak to your professional accountant in this regard to have a clearer understanding of the benefits for which you are eligible. Repair costs can also be deducted from your taxes when presenting them to your accountant.
In summary, you might be able to find homes at a lower price by becoming an occupying-owner. In some cases, the revenue from rent is enough to pay off the full mortgage loan as well as the costs related to building maintenance. Approach your financial advisor to gain a clear understanding of your situation and its benefits.
Once you are ready to get your plan in motion contact Joelle Bitar and her professional team to help you purchase your property. Joelle also is associated with a strong team of partners that can help make your dream a reality.