Newton, MAÂ offers some expensive 2 unit multifamily, aka 2 family, houses. Â Are they good investments?Â Â Data in this post is based on information provided to and compiled by MLS Property Information Network, Inc.
First, let's take a look at the average sale price. Â In 2010, the average sale price for a Newton 2 family house was $578,781 and that is significantly lower than $746,581 at the peak of the market in 2005. Â Fifty-eight 2 family houses sold in 2010.
For the investment minded, I'll go through the rent numbers and gross rent multiplier. Â Newton 2 family house rents have been steady over the last decade. Â The average rent for a unit in a 2 family house was $1,550 in 2010.
The high rent in Newton is not enough to offset the higher sale prices. Â The Gross Rent Multiplier has fallen in recent years and settled at 15.6 for 2010. Â That gross rent multiplier is higher than many other communities in the Commonwealth. Â I don't know the cap rate for a Newton 2 family house but I can confidently assure you that it will be low.
Investors might conclude that they should look elsewhere for their multifamily income property. Â That could depend on whether look at a 2 unit multifamily as an opportunity to live in Newton. Â The average sale price for a single family house during 2010 was $865,296 and that single family house does not provide the own occupant any income!