Why becoming an owner-occupier of a plex could be a great idea?
In the real estate industry, where competition is fierce and there are many challenges to buying a property, it is essential to explore creative options to achieve your goal. One often overlooked possibility is becoming an owner-occupier of a plex, and this could very well be the ideal solution for you.
- What exactly is an owner-occupier? Being an owner-occupier means buying a plex or a residential building with five units or less to live in. In this case, you rent out the other units to generate additional income. This rental income can help you not only repay your mortgage but also cover your property taxes and maintenance fees. An attractive feature is that you can usually make a minimum down payment of only 5 to 10%.
- What types of properties can be profitable for an owner-occupier? It is important to consider your lifestyle, financial profitability, the size of the building, and your debt-to-income ratio before diving into buying a plex. To avoid complications, it is recommended to start with a duplex or triplex. Beyond this number of units, responsibilities increase significantly, as do the risks of conflicts with your tenants.
- Advantages and disadvantages to consider:It is wise to weigh the pros and cons before deciding to become an owner-occupier of a plex. Here are some advantages:
- Facilitating your path to homeownership.
- Reducing your minimum down payment.
- Repaying your mortgage faster thanks to rental income.
- Taking advantage of certain tax-deductible expenses.
On the other hand, you must also consider some disadvantages:
- Sacrificing a certain level of tranquility due to the proximity and noise generated by your tenants.
- Ensuring good and harmonious cohabitation between you and your tenants.
- Being available to respond to their requests and concerns.
Becoming an owner-occupier of a plex can allow you to secure housing at a lower cost. In some cases, the income generated by rentals is even enough to cover the entirety of your mortgage and the expenses associated with maintaining the building.
If you are looking for an innovative solution to homeownership, becoming an owner-occupier of a plex can be an excellent option to consider. Don’t hesitate to explore this possibility and take all parameters into account before diving in. It may very well be worth it!
Do you want to become an owner-occupier of a plex? Fill out the form below to get more information and start your project today! Don’t miss this opportunity to achieve your real estate dream. Take action now!
