apartments: Disadvantages of Apartment Investing and How to Overcome Them
- 12/24/11 12:42 PM
Following up on my previous post “Advantages of Multi-Family Property Investing”, nothing is ever risk free and there are two sides to EVERY investment. How each investor overcomes or mitigates a disadvantage is what separates the mediocre from the great investments. The following are some things to consider before investing in Multifamily Property. 1. Investment amount: Although the per unit cost is typically small, apartments are only sold as a whole, making the entry cost to purchase a building higher than some are willing or able to meet. Since the larger the property the more economies of scale there (0 comments)
Single Family homes offer good returns and excellent potential for appreciation. As demand for housing raises so does the price of your investment property. So long as your home is in a desirable area for an end user you should see great appreciation as the market recovers from this most recent downturn. Appreciation however, is completely dependent on the subjective desires and financial ability of the “perfect buyer” and directly related to uncontrollable market forces. Multi-Family apartment property however, while partially driven by subjective value assessments; is more heavily driven by objective facts that can be (0 comments)