The single-family attached home is becoming more popular in the real estate market. It’s got tons of benefits and it is also cheaper than detached homes.
The attached single-family home is more affordable than detached homes because it doesn’t require as much land for building and the construction costs are considerably lower.
Attached-family homes are also more energy efficient, which saves you money on your utility bills every month!
Do you want to know the best part about investing in a single-family attached home?
The flexible financing options! These property types have the possibility of falling into PMA’s Residential Bridge Loan program, creating a fantastic loan option for many experienced real estate investors!
What does “single-family attached home” mean?
To get a really good understanding of these types of homes, it’s best to compare them to condos, co-ops, and townhomes. Each of these types of properties shares an exterior wall with another property.
Before we get into the most important facts to know about single-family attached homes, let's get some important definitions out of the way:
Single-family attached: This type of house is perfect if you want a more urban lifestyle or if the neighborhood where you live doesn’t allow detached houses. You will also save money on property taxes since single-family attached homes are usually cheaper than detached ones.
Attached family home: If you have kids and want them to play outside with their friends, then this is the perfect type of home for you. You will never have to worry about them getting in trouble for playing on your property and it will also be easier for you to keep an eye on them.
Detached home: This type of home style refers to the traditional homes you’ve probably seen your entire life. Think of your typical brick-and-mortar home with a nice white picket fence and a dog in the front yard. This type of home is completely detached from any other property, giving it a better sense of privacy.
Semi-Detached home: a house with one shared wall - also known as two dwellings that share a wall, or one on top of the other. This is not to be confused with townhouses that have shared walls and terraced housing that has no shared walls at all.
Understanding these four definitions will give you a better picture of the following facts and how they can benefit you both financially and lifestyle-wise.
The 5 most important facts about single-family attached homes
More Property Development
The idea of renovating or investing in the real estate market is very visible for Millennials. However, because construction is low there are not many single-family homes on the market so buyers may have to compromise a bit, but they still have the possibility of getting that traditional turn-key home style!
Traditionally attached homes are cheaper to purchase & develop and offer more (storage). But, buyers that are looking for something new and exciting might have more luck with single-family attached home properties.
Higher Rentability Chances
Attached houses are often more rentable. That’s not always true, but it’s true enough to remember. Many of the people who buy residences as an investment are buying subdivisions with a bunch of apartments in them.
The apartment right next to theirs is usually rented out which provides a bit of extra security.
More Supply Available
Attached housing is becoming more common in major cities, which means that they're often close by. Like other homes on the market, they are close to parks, hospitals, banks, highways, and shopping centers. They may also be closer to your family and friends too!
This type of housing option is perfect for commuter renters or investors looking to diversify their renter options!
When it comes to investment properties, it’s critical that you look for options that are close enough to big cities to provide more job opportunities but also far away enough to provide more safety!
Lower/Shared Maintenance Costs
One of the most important facts you should know about when you’re considering investing in a single-family attached home is the maintenance costs. Becoming a part of a communal living system has the possibility of providing the renter with a lower maintenance cost!
An attached vs. detached house usually means a lot in terms of the work it takes to maintain them. Condominium owners, for example, are only responsible for maintaining the interior of their unit which is way less work than homeowners who will have to deal with everything from roof repairs to lawn care.
These types of properties usually catch the eye of renters who have very few material possessions and preferences. Utilities are usually included as well with the purchase price.
Read Into The HOA Costs
HOAs can pay for expenses like landscaping and amenities. Higher HOA fees are typically included in the purchase price of houses. HOAs have bylaws that cover a lot of things like the color paint you're allowed to use and what type of plants you can grow in your backyard.
Exterior alterations, such as changing the color of your property, come with these constraints.
How To Spot The Perfect Single-Family Attached Home
You don't want to get into a new home before you're ready. That's why the Consumer Financial Protection Bureau recommends keeping your total debt-to-income ratio below 43%.
If you divide up your monthly earnings and apply them to what you owe each month, the figure should be lower than the total income.
The better it is, the healthier your finances will be. Make sure to account for your future mortgage and unexpected monthly expenses when doing this calculation.
You want to make sure that you have some extra cash before taking on this purchase.
One of the most important aspects to focus on when you’re trying to spot the perfect single-family attached home is “location”.
You want to make sure the location of your new attached home provides a wide variety of options for either your borrowers or yourself!
What does that mean?
In simple terms, you want to reach a wide audience of people who can be interested in buying your property from you, making it a more profitable investment purchase.
An ideal location would be located 15-20 minutes from a major city for job options while being tucked away far enough in the suburbs for maximum safety.
By achieving this, your single-family attached home will catch the eyes of both new families looking to settle down while working in a big city, and new couples trying to get a foothold on their finances!
The Bottom Line
So here’s the bottom line… The entire point of this article and most of the content on our website is simple.
We want our audience to make the most profitable decision (which means having the most information possible) when they’re looking for either investment properties or real estate for themselves!
If you’re looking into owning a single-family attached home, there are multiple facts that are covered in this article that could save you thousands of dollars!
The only thing that could be more important than being able to spot the perfect single-family attached home would be choosing the best mortgage lender for your real estate finances!
This article only covers one half (an important half) when it comes to real estate investing, make sure to take a look at our other articles to get a better understanding of the industry as a whole!