Residential investment properties are properties that you invest in, in order
to make money through resale or leasing the property to residents. There are
three different kinds of residential properties. Each type has its own set of
financial requirements as well as advantages and disadvantages.
One should consider all this factors before investing in one of these
types of property.
The three kinds of residential properties are:
·
Privately owned homes
This is a single residence occupying an independently owned piece of
land. Such a property is highly valued because of the amount of space and level
of privacy it offers sample of our pictures are at this website House plans in Kenya which will help you to make a good choice. The negative side of this property is the fact that the
house will remain unoccupied and available in the market for a long period of
time because of its high value.
There is also a high probability that the property can depreciate in
value due to negligence by the residents. The property manager has to provide
regular maintenance for such a property. This can be a challenge especially if
the property manager is managing many properties.
·
Condominiums
This type of real
estate is where residential houses are built in a complex. The houses
themselves are independently owned but other parts of the complex like roads,
gardens, swimming pools and play grounds are held in common for all the
residential houses in that complex. A condo is valued lower than a privately
owned home. Agreements and bylaws are set in place to govern the conduct of the
residents.
When such property
is well managed, the value of each residential house goes up and vice versa.
The maintenance of such a property usually tends to be good due to the joint
ownership of the shared facilities compared to maintenance of a privately owned
home that has been rented out.
·
Multifamily Properties
This is where
individual houses are located within a single building. Examples are apartments
and duplexes. The advantage of multifamily housing is the fact that different
houses are occupied by different residents. Therefore the sources of income are
diverse compared to condominiums and privately owned homes. It is highly
unlikely that all the houses in a multifamily property are unoccupied at the
same time. The owner is therefore guaranteed of some income each month.
One should consider the pros and
cons of each type of residential investment property before deciding on which
kind to invest in.