subject: Apartment Investment Building is easy and profitable [print this page] Investing today in multi Investing today in multi
Search in volatile financial markets today, the investor must have the common sense traditional financial vehicles, like stocks and bonds to secure long-term capital growth and security. House-owner strategy can be a great one multifamily investments as part of a larger diversified portfolio. Unfortunately, many novice Commercial Real Estate Investors with investment deterred by the HouseThoughts of weekends spent painting or even trying to collect rent from tenants prior to late. Nothing could be further from the truth. There are some amazing facts about multi-family investments, which will completely change the way you view this unique investment vehicle.
Warren Buffet once said that he is famous in a market, "if you prefer to invest blood in the streets." In other words, the investment guru sees opportunities for others seekingremoved. residential real estate markets in the United States is to turn in a queue. foreclosure rates to record levels in many metropolitan markets.
Nobody knows if it is an end in sight or if more families will be forced from their homes by rising mortgage payments and an economic slowdown. Instead of buying into a weak housing market, while prices are still falling, a strategic investment in a medium sized apartment building allows the investor toprovide much needed accommodation to a potential base of millions of displaced persons.
Even with a slowing economy and business cutbacks people will always need a place to live. Demand for rental properties has never been higher. According to a recent United States census, currently one third or 36 million households in the U.S. are tenant occupied. In fact, rent a full 83% of all households under 25, and 55% of households 25-35 tenants. The growingThe elderly population will continue to rental housing as a cheaper alternative and less expensive to home ownership.
In contrast to the homes, many multi-family properties for a price that is well below replacement value purchased. This makes older, well-run demand multifamily buildings more competitive with the properties of new construction, higher rents, they must cover their mortgage payments. In addition, new buildingcan cause buildings to the value of existing properties and increase the value of their investment.
One of the biggest advantages of investing in an apartment property is the fact that you are able to take advantage of your investment. Even as the subprime housing market is crumbling, banks are more than eager to lend a building in good money. Banks usually borrow up to 80% of the actual purchase price and in some casesallow to keep the previous owner up to 10% of the purchase price in the form of a second mortgage owner financed. This allows the investor to purchase the property for less than 10%. Always try a bank loan to purchase 80% shares.
As with any investment property, condominiums do not resist, leverage is one of the main advantages of ownership. A bank is presented with 80% of the purchase price of an offer on a house. ForFor example, if you purchase a property with $ 600,000.00 $ 800,000.00 $ 200,000.00 loan and cash, and the property value of $ 24,000.00 after one year, which is a 3% increase in value, but an increase 12% on your investment of $ 200,000.00.
