Should You Consider Investing in Apartments?

Many people choose to invest their money in banks or stocks, but we’ve been seeing a new trend as of late.

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We are starting to notice more and more people investing their money in apartments, for a few reasons. Demographics are changing here in the U.S. and a lot more people are renting than they have in the past. A lot of that has to do with millennials who are strapped with college debt and renting longer because of it. This has created quite the demand for rental housing.

Many people are putting money into multi-family housing like duplexes, triplexes, fourplexes, or going commercial with five units or more. Investors are getting anywhere from a 6% to 8% cap rate on their investment, which is a lot better than you would do in the banks, and much less risky than the stock market.

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There’s quite a demand for rental housing.

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When you invest in commercial real estate property, you’re letting the tenant pay off the mortgage in the long run, all while taking advantage of certain tax benefits. You are leveraging other people’s money in order to pay off your retirement with passive income. 

Of course, you should consult with your financial advisor or tax professional prior to making a decision, but I personally use real estate in my portfolio and think it’s a great investment. 

If you have any questions or are curious about what it’s like to own investment real estate, give us a call or send us an email. We would love to hear from you!