Residential Properties: Types, Tips And Things You Need To Know

You need to know first-off that residential properties are the best-selling estates in the dwelling enterprise. This is because this type of real estate serves the most essential cell of the society – the family. And if you are a real estate investor you can choose a variety of properties to sell and carry on into your portfolio.

Here, we will be dealing and will be showing you an overview of some of the different types of residential properties available for you. This not only includes types but tips to help you out with the target properties in mind and some other things you need to know as well seller and buyer alike.

FIME_Real_Estate_FIrst_Investment_Head

Single-Family Dwellings

This is the most sold-out property for family persons. There is usually one main entrance and one address for the home. This is what we think of as typical neighborhood type dwellings. And the land where these homes usually are built are part of the package, that’s why we typically ask for a “house and lot” type of property.

However, there are special cases where the property was built on a leased lot or land. This is because the property is primed by some other properties such as resorts, corporate workplace, church-owned and some other strategic place. But these kinds of properties are exceptional and are only targeted to families with special predisposition and where the financial aspect is not much of an issue.

1. Site-Built Houses

A typical buy and build house type. The owner usually buys a bare lot and commissions a contractor to do the building. This type of housing can either be done by a single individual or can be done by a corporate contractor. More moneyed and meticulous buyers build their own from scratch as opposed to the commercialized housing by big contractors where houses are pre-built and sold as is.

For customized construction by an individual, remember that Local Building Codes and Permits have to be considered, especially if you build your house in a highly urbanized area. Building Permits and City Engineering will determine which materials will be allowed in especial localities that are prone to calamities – flooding, earthquake and storms.

2. Mobile Homes

Otherwise also known as Manufactured Housing or Prefabricated Homes. In the US, houses like this bear the Red Tag that guarantees the home conforms to the Home Construction Safety and Standard Code. In the Philippines, PreFab Home manufacturers and buyers must adhere to The National Building Code (P.D. 1096) for residential and other types of housing.

“Note: Most lenders will not guarantee to finance prefab housing unless it is built on permanent foundation – and not on mobile platforms like wheels. Check for the foundation status before putting yourself forward for a loan.”

Mobile homes are usually pre-built on permanent steel chassis and transported to the building site where little time is needed for building as compared to custom site-built houses. Prefab housing usually has an information sheet pasted somewhere inside. This plate informs the owner about the manufacturing date, materials, tolerance and some other important matter about the house. Mobile home by namesake is highly mobile, you may still notice the transport wheels still attached even after the installation.

“For resellers and agents, prefab housing is usually hard to sell for reasons that bear the stigma of bland home design without much material and thoughtful effort. Besides, new home packages nowadays that don’t even require down payment are quite attractive; that prefab may be very hard-pressed to get any attention from them. Research the area about the condition of sales for prefab or mobile home before going on a purchase.”

Manufactured housing has higher interest rates but with not downpayment. So, buyers can move-in at will. Prefab can be sold with the lot on the seller’s or owner’s discretion if the lot is part of it.

Note however that some housing development and communities do not allow prefab housing for some standardized reason such as aesthetics.

Source: Prefabium

3. Modular Homes

Modular homes are highly confused with prefab housing. Though, they might nominally be the same and look the same, mobile homes as stated are likely to be more mobile and can easily be relocated. While modular homes, while not deemed that far from prefab, are more rooted to the foundation. Modulars are more likely to be more stable and permanent and can even be furnished well so as not to look like one.

Modulars are built faster than site-built homes. Their sections are fabricated in a manufacturing plant and later transported to the construction site to mesh with the other pre-manufactured parts.

Multifamily Dwellings

Are actually separate but collective residential properties within a bigger structure. These dwellings can be condos, townhouses, duplexes, fourplexes and the likes of it. Remember that, these structures are given titles and deeds differently than single-family homes. Even the type of ownership of some of these properties are considered hybrid. Because these structures are owned by individuals under the umbrella ownership or management of a group of stakeholders. Condos are one concrete example.

FIME_Residential_Properties_Condominium

1. Condominium (Condos)

This dwelling let the buyer or occupant own the whole unit but not the land beneath it. So condos can be stacked above or beside each other as a typical building. Condo owners own only the whole unit that might include a little easement such as the veranda and the doorstep. The rest of the properties are shared by other occupants, more in particular the amenities that goes with it. Gyms, pools, complexes are some amenities that need to be paid on a periodic basis including maintenance for hallways, waste management, aesthetics, surroundings and other common areas. These payments are otherwise known as condo dues or management dues.

Condo unit owners pay taxes for their own unit and while management pays property taxes on the common areas.

High class condominiums, more in particular those located in resorts and business districts, have property management companies that further specialize in reselling or rerenting the units. So property owners find it easy to rent their units. Agents in these offices can show you great deals on rental and ownership potentials of the units. Selling or renting your unit is a breeze using their service. You can even act as your own property manager using their service and can expect good returns even after you pay their service.

2. Townhouses

Or also known as Town Homes are multistory residential dwellings that are meshed horizontally. Owners own both the unit and the land beneath it, so townhouses cannot be stacked on top of each other.Unit owners pay taxes on their property as well as the land where it stands.

Common areas are shared by all townhouse owners. Townhouses are being managed pretty much the same as condos are.

Source: Mashvisor

3. Duplexes and Fourplexes

Structure that contains two or four residential units. This could be a townhouse or a condo but with lesser units in it. A fourplex can obviously be owned by four families. But it is also typical to be owned just by a single individual and rent the rest of the units.

Duplex or fourplex can be a lucrative investment. Note that there are four units standing in just one piece of land as compared to a single unit to a single lot. Add to that, the fourplex price tag is much more competitive than a single site-built or even socialized housing by corporations. As mentioned, you can either occupy the one unit and rent out the other three to fellow workers or other perks. So, tenants pay rent for the mortgage of the rest of the units.

Right there are your basic residential types. Now, you might be pulling up your sleeves for a first investment. Not bad, but first, know How To Find Your First Real Estate Investment or better yet know if Real Estate Investment Is Right For You. More often, it pays to learn, much more if you’re learning for a crucial investment in life.

SHARE

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print
Share on skype

RELATED POSTS

COMMENTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Scroll Up

SEARCH FIME

fime

Subscribe

Spam? We don't like the taste of it!

fime

You're message arrived!

We're darting towards you at the speed of

Light!

fime

You are Subscribed!

Awesome!