While real estate usually makes for a great investment, some forms of real estate are better than others. If you’re undecided about the type of property in which to invest, multifamily properties make for a great choice. Here are five reasons to mull over while you’re considering your options.
- Better Legacy Planning
Because you’ll have several tenants pitching in the help you pay your mortgage, you’ll likely have an easier time of building equity. What’s more is this advantage has been known to be quite beneficial when it comes to bulking up your assets portfolio. If you’re investing in the real estate market as part of your retirement plan, your tenants can help boost whatever you’ve saved up so far.
- A Minimum of Risk
When compared to single family homes, office buildings and retail buildings, multifamily properties are the most stable and the most in-demand. While any type of real estate investment is a risk, a multifamily property is among the least dangerous. What’s more is that this type of property is likely to be among the least risky for several years to come. While risk is inherent with nearly any type of investment, it’s best that you do everything you can to minimize your liability while maximizing your return.
- Take Advantage of a Low-Cost Debt
If you’ve been paying attention to the market, you’ve likely noticed how low interest rates have dipped. These rates won’t last forever, and taking advantage of them while you can allows you to lock in a low rate for the long term. Do your future self a favor and strike now while the interest iron is hot.
- A Solid Asset
No matter what, it’s highly unlikely that a multifamily property will ever not ever be worth anything, which is just another reason to invest in them. While it’s inevitable that inflation will take its toll on your investment, you’re unlikely to find investments that hold their value as well as apartment buildings.
- Better Than Stocks
If you’ve ever invested in stocks, then you already know that you can’t make any money from them until the stock pays out dividends. Unlike that investment option, a multifamily property like an apartment building offers more of a return on investment.
As you can see, multifamily properties make for a great investment draw. Explore your options and speak with a real estate professional to learn more about which multifamily property is the best fit for your specific investment needs.