Do 4 units, and duplex's apprechiate the same as single family properties?

Question

for example, if the area apprecihated 10% in a year, then a single family that was 500,000 is 550,000. is it the same for 4 units and duplex? or do they apprechiate different because their not single family?

or does apprechiation apply for ALL residential properties?

Answer 1

Yes, they do. Be aware at this time in this country (USA?) that properties might not be appreciating at the normal rate of 10%. Sales are down all over the country from what is being told. But you can estimate that the same appreciation that is being applied to residential, one-family homes can be the same as these others.

Answer 2

I have some single family homes that I rent out. While I can't say for sure regarding multi-family, here is my best guess...

I believe the properties do appreciate close to single family homes but the value actually comes from the rental income. Increase the rental income, (and have it rented at the higher price) and you increase the value of the property.

Now, sometimes, rents can be higher than a monthly mortgage payment...so people buy...other times, it is cheaper to rent. This makes it seem like your mulit-family property value can fluctuate over time.

Also, keep in mind that there are fewer multi-family buyers out there, so if you want to or need to sell your multi-family property in the future, it could be on the market for awhile. They are not a "liquid" as a single family home.

I think the ideal would be to buy a multi-family home...preferrable a duplex...and live in one side and rent out the other...this allows you to live close to rent free or for very little.

Answer 3

I disagree that rental properties appreciate at the same rate as do single family properties. Perhaps, over the LONG term, it will average out thusly. However, in the shorter term, rental properties may appreciate faster or slower than do single family residences, depending on the available supply of rental properties in a given area.

In my specific area, at this time, single family properties are still increasing in value slightly, even given the softer real estate market. Rental properties, however, have actually declined slightly in value, because the area is currently awash with vacant rentals due to overbuilding of rentals.

Eventually, the situation may correct itself, but until it does, the rental properties are now worth a bit less than they were at this time a year or two ago.