- Although leverage usually requires 50%, being able to take advantage of debt means your equity can grow faster.
- Historically, apartments have shown a 4-6% return from the start of investment and increased over time.
- Depreciation of Apartment buildings over 27.5 years means an additional tax shelter.
- 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.
- With inflation, real estate appreciates in value.
- Mortgage write offs and pay offs usually return 15% equity in the first decade and more than 30% in the second.
- 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.