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If you have extra income or funds to invest, you may realize that there’s an overwhelming number of investment choices out there. One investment option you shouldn’t overlook is owning an apartment building. Here are five reasons why owning an apartment building is a great investment.
Capital Appreciation
Your investments should increase in value over time, and historically, real estate investments have. The multifamily housing market is strong, and it looks like it will remain that way for the foreseeable future.
People will always need a place to live, so multifamily real estate investments are less vulnerable to economic swings than other investment options, like retail and commercial office buildings. To help ensure appreciation of the asset’s value, though, investors must maintain the property.
Inflation Hedge
Any investor will have to reckon with inflation in one way or another, but some investments do a better job of hedging inflation than others. Owning an apartment building is one of the best possible investments because owners can hedge inflation in two ways — through capital appreciation and rent increases.
Some of the effects of inflation will be naturally absorbed by capital appreciation and the apartment building owner can easily pass the rest onto tenants through rent increases.
Cash Flow
If you’re looking for an investment that will generate significant cash flow, an apartment building is perfect for you. Though some other investment types like annuities and dividend stocks do generate some cash for investors, comparatively, apartment buildings usually generate much larger payments.
With the rent due every month, an apartment building can offer unrivaled cash flows.
Tax Benefits
The US tax code is advantageous for investors who choose to invest in apartment buildings and other real estate holdings. Both depreciation and mortgage interest are tax-deductible expenses, and in some cases, investors can deduct utility and travel costs as well. This helps shield some of the cash flow generated by the apartment building and ensures that more money ends up in the investors’ pockets.
Potential For Partnerships
If owning an apartment building seems like too big an investment for you alone, that’s not a problem. Apartment buildings are ideal for groups who come together to invest in bigger and better properties than they could afford by themselves. Better properties mean more potential for profits.
Right now, Ed Currie and his team are able to secure your mortgage for your owner-occupied apartment buildings, as well as construction loans for updating older buildings with great bones.
Call us today at 847-214-2404 for a free consultation. For more tips and our latest updates, check us out on
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