Real estate never depreciates. Its value comes in double or triple every year after acquisition. In the present, making investments matter, so where could you possibly invest? Although investments have risk it is rewarding in the long run when you invest in the right one. Could investments make you wealthy? It depends on how you manage it and where you invest it.
Even before, investment in real estate is good. The value of properties appreciates through time. This is good for someone who wants to personally and actively take part in growing their capital. Real estate needs big capital and if you are a newbie, it sounds discouraging. But nowadays, banks and other financial institutions offer favorable loan terms to those who wish to loan capital for investment.
Apartments are residential units in a big building. With the progress in a city like Miami, developers made use of Brickell apartments as substitutes to single detach housings since residential space in the heart of the city is expensive, small, and limited. Thus, investing in apartments is a good idea. This is good for those who want an extra income. The return of investment (ROI) is slow but the income is steady and so as the appreciation value of the property. Here are at least three good reasons why you should start investing in apartments.
1. It is a personal investment and a business. Buying an apartment is hitting two birds in one stone. You can live there or you can rent it out. It is really up to you. Living in apartments is more convenient especially to those professionals who want to save travel time because apartments are mostly built in the city proper. On the other hand, if you already have your own house, you can rent it out to other families.
2. It reduces debt and tax. When your apartment starts earning through rents, it reduces the debt on the property especially when you purchased this through a loan or you are paying it on installment terms. In time, the money earned from rent becomes the fund for debt payments. Therefore, it reduces the balance of the debt and it creates equity. Real estate owners enjoy different benefits from the government. Benefits such as no limit mortgage interest deductions.
3. It appreciates and never depreciates. If you are into a multifamily rental, the asset value of your properties appreciates through time. In the case of apartments, the value increases, and at the same time the rent increases. As you maintain the property, any improvement is worth a penny because it always rings a bill for an increased operating income.
Investing in these properties require hands-on management. Risks are always present like major repairs and maintenance and unexpected unit vacancy. Hence, always practice due diligence during purchase and make sure that all legalities are followed and complied with. Like any other investment and business investing in apartments seems daunting if you’re into it for the first time. Through hard work, vigilance ad diligence, investing in apartments is rewarding and fulfilling.