My coworker, Greg Andrasick (R), and I recently listed a triplex property in Punchbowl. There two, 2-bed/1-bath units and one, 1-bed/1-bath unit. All three units have separate entrances. In addition, the property has a Walk Score of 80. With a lack of housing inventory and high home prices, multigenerational living can be a valuable option for some first-time homeowners.
Most people would think the next owner of this property would be an investor. That’s a good possibility since the home could have a strong rent roll. However, our listing could be equally appealing to an owner-occupant. Here are three reasons why 520 Magellan Avenue could be great property for multigenerational living.
Our Culture
Multigenerational living is becoming more popular on the mainland. However, multigenerational living has always been common in Hawaii. When I survey my own friends, many of them lived with their grandparents, great grandparents, and or another relative. That’s just part of our Hawaii culture.
With three separate units, you are physically close to your family, but you have your own personal space. Did you know that some studies have shown that children living with grandparents exhibited improved school performance?
Caregiving
We’re all going to get old; that’s a harsh fact of life. The average person cannot afford private caregiving. It’s not uncommon for private care to cost over $10,000/month. Don’t forget that this is usually an out-of-pocket expense. Multigenerational living is one way to soften the cost of caregiving. Living in a home like 520 Magellan Avenue allows you to bring in an aging relative. Since there are three units, you could possible rent out one of the units to a caregiver.
Prequalification
It cost a pretty penny to living in Hawaii, especially in Honolulu. With mortgage rates heading towards 5%, many first-time home buyers are being squeezed out of the housing market.
When it comes to multigenerational living, you can get prequalified with your parents. Ideally, when you add a co-signer to the mortgage, you want to increase your purchase price. Or if you have the finances to purchase the home on your own, your parents could financially contribute by paying you rent or their share of the utilities.
-Roda