In Hamilton, we have the benefit of being close to several colleges. We also have a dynamic rental market with a lot of diversity. So, when investors are trying to decide what to buy, they’re often confused about whether a single-family home or a multi-family property geared towards students would be better.
Each investment type comes with its own strengths and challenges. We’re here to talk about your investment goals and help you decide what will work best for you.
Single-Family Homes for Hamilton Investors
Single-family homes always make great investments, no matter what your financial goals happen to be. These are especially attractive to investors who plan to hold onto their asset for a while. If you’re planning to keep a property for 10 or 20 years, a single-family home is a great investment. It appreciates in value quickly and steadily, which means when you’re ready to sell, you have an excellent chance of earning higher profits.
The tenants you attract to single-family homes are often more reliable as well. These will be residents who want to take care of a home. They are likely to stay in place longer, especially if the home is well-maintained and close to great schools and their work. With a single-family rental property, you’ll never have to worry about attracting well-qualified tenants.
One thing you’ll have to plan for is that single-family homes are often more expensive. So, you’ll have to invest a little more in the beginning. They might also cost a bit more to repair and maintain. This usually depends on the age and condition of the home, so pay attention to these things when you’re buying.
Student Housing and Multi-Family Units
College and university students often get an unfair label. They’re assumed to be messy, poor, and irresponsible. This isn’t always true, however, and if you screen your tenants well, this is not a risk you need to face. The benefit of investing in student rentals is that you will always have a strong pool of tenants. Young adults will always go to university, and they’ll always need a place to live. Vacancy will not be a problem.
You may be able to charge more rent since most student rentals come with a larger number of tenants. With three or four students contributing to rent instead of just one person renting the property, you have a little extra insurance when it comes to collecting higher rents on time.
Another benefit to student rentals is that while you need to provide a clean, habitable, and functional home, students aren’t as interested in upgrades and updates as other tenants. Stainless steel appliances and tile floors will not be necessary.
There are a lot of great investment opportunities in and around Hamilton. Whether you decide to invest in a single-family home or a multi-family building or a series of units designed to serve students, we are here to answering any questions, provide any resources, and talk to you about Hamilton property management services. Please contact us at Spotted Properties.