Single Family Homes (SFH) and Multiple Dwelling Units (MDU) are highly popular residential accommodation options. As to which type one prefers depends upon why one is investing (for moving in or for returns), the size of one’s budget and the choice of location. Both types come with their respective sets of advantages, and before one makes a final choice, it’s a good idea to apprise oneself of the costs involves in setting up both Single Family Homes and Multiple Dwelling units.
According to the National Association of Home Builders (NAHB), the average Single Family Home was built on a plot size of 14,359 sq. feet, comprised a finished area of 2607 sq. feet and had a selling price $399,532(2013 figures). When it comes to calculating the extent of appreciation we can do so by looking at the cost of a Single Family Home in 2008(US Census)which was $295,000 for a typical 2520 sq. foot two story structure (US Census-2008). This figure can of course vary depending upon the state or city where the house is located.
To get an idea about Multiple Dwelling Units pricing in 2013-2014 we can look at the figures for Maricopa County in Arizona. The average price for 3 & 4 unit sales for 2013 and 2014 has ranged between $33,158 and $52,805. One thing that really helps offset the cost in the case of Multiple Dwelling Units is the fact that one can live in one unit and rent out the others. In today’s times that’s a huge advantage. In fact obtaining a mortgage for Multiple Dwelling Units is cheaper on this count.
In fact in places like Chicago where more and more people look at renting residential property than buying homes outright, it makes eminent sense from a ROI point of view to look at buying Multiple Dwelling Units rather than Single Family Homes. However, generally a single family home may in the long run work out cheaper for some by virtue of the fact that the maintenance costs don’t go on rising, as they do in the case of a multiple dwelling units. On the flip side amenities like a gym or a swimming pool will definitely cost more in a Single Family Home.
In the ultimate analysis both Singly Family Homes and Multiple Dwelling Units have their respective cost advantages under specifics sets of conditions, and one’s choice of property is determined by what best works for one.
Summary: The costs of setting up a Single Family Home or Multiple Dwelling Units are determined by the interplay of a dynamic set of conditions. While the former might entail lower maintenance charges, the latter score in terms of the fact that one can rent out part of the property, thereby reducing cost and creating a revenue stream.
Twitter Summary: The respective costs involved in the case of Single Family Units and Multiple Dwelling Units vary substantially, and one chooses either option depending upon what works best for an individual.