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.
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