For investors seeking options for diversifying their portfolios, multifamily offers a number of clear benefits:
Unlike other commercial real estate classes, multifamily investment is positioned better to withstand dips in economic cycles. People always need housing, and demand for apartments has increased over the past years as population grows.
Whether investing in a new development project that meets a market’s pent-up rental demand, or value-add properties that generate immediate rental increases, multifamily offers investors a strong and consistent return on their investment.
Both young professionals and older adults have shifted away from home ownership toward renting. Many individuals and families now rent by choice in search of a more flexible lifestyle.
With a diverse tenant base that turns over more regularly, multifamily properties support more frequent rent increases.
There is an unprecedented amount of capital seeking multifamily investments, making this sector the most liquid, and desired, real estate asset class of all.
Benefits of income producing real estate investments include the ability to offset the taxable impact on cash flows by the property’s depreciation and delay a significant portion of the income tax liability.*
Multifamily investments offer income appreciation and are a hedge against inflation.