7 Reasons to invest in Apartment buildings

1. Although leverage usually requires 50%, being able to take advantage of debt means your equity can grow faster.
2. Historically, apartments have shown a 4-6% return from the start of investment and increased over time.
3. Depreciation of Apartment buildings over 27.5 years means an additional tax shelter.
4. Real estate is a good hedge against inflation. Real estate values have grown with inflation sometimes generating double digit returns over a short period of time.
5. With inflation, real estate appreciates in value.
6. Mortgage write offs and pay offs usually return 15% equity in the first decade and more than 30% in the second.
7. Unlike stocks and bonds, you can sell your apartment and exchange it into another investment property and defer the capital gains and avoid paying capital gains taxes.

Advertisements