If you want to invest in the real estate market, you have different options when it comes to the properties available. One of the most attractive properties that a lot of investors are after are apartment buildings. Investing in apartment buildings is advantageous to investors in more ways than one. While there are all sorts of properties you can invest in like commercial and residential properties, nothing compares to apartment buildings. What follows are the top reasons to make apartment building investments today.
If you choose to invest in apartment buildings, you get the chance to have different streams of income. Simply, you only need to make a single investment and the income sources you will get are a lot. You cannot find other investment options that give you these many income sources without taking major risks.
Try looking at apartment building financial statements, and you will come across four streams of income that work as one. You have cash flow, appreciation, principal reduction, and tax benefits. When it comes to cash flow, you will be earning cash at this time and when the time comes that you sell your apartment building. In terms of appreciation, your real estate property will grow organically over time. Your property will appreciate as well when you manage your property wisely. For principal reduction in apartment building investments, the residents or tenants will be the ones who get to pay your mortgage balance monthly. For your tax benefits, you can take advantage of depreciation expense. There is no need for you to pay capital gains too if you want to reinvest your profits.
Another benefit to investing in apartment buildings is their predictability. Having shelter is one of the basic needs of all individuals. You hear this fact a lot whether or not you invest in apartment buildings. When the time comes that the downturn of the economy will affect you negatively, for sure, you would rather let go of your workspace than the apartment where you reside. Just take a look at the increasing number of vacant retail and office buildings around you. Looking at these trends, you can conclude just how more unpredictable investing in commercial properties is than apartment buildings.
When the economy is performing poorly, people investing in apartment buildings can benefit a lot. Apartment building investors can benefit from the lack of credit availability and affordable housing. When it comes to residents in apartment buildings, they get the benefit of having a clean and safe place to live that they can afford.
Lastly, there is the benefit of control when you invest in apartment buildings. You get to have some control on how you want to invest. It is up to you to make a group investment or an individual investment or with a partner. You get control too in the kind of apartment buildings that you want to invest as well as their respective locations. When you want to invest is another decision you have control over.