Buying a real estate, like an apartment building, for profit is one of the best decisions you can make in life. Not only is a property of this nature considered lucrative relative to its demand, but it also provides stability of income and long-term returns in investment.
But having a property to let is not all bliss—it, too, comes with a number of concerns that you must address in order to make it a feasible source of revenue on your end.
Here are the pros and cons of buying an apartment building:
- It is an appreciative asset
Apartments may be subject to age and decay over time, which could potentially affect its value for the worse. But why let your real estate be in a worse off state when you can maintain it over time and, subsequently, get a better yield from lease in return?
- Provides a regular source of income
There is always a staple demand for housing, wherever you may be in the world. Tenants who find more benefits in renting than buying their own homes, especially, lease for long periods which equates to a stable source of income.
- Rent is a stable cash flow
You foresee how much money is coming in any given month. You can set aside some money and plan for renovations, contingencies, or maybe add amenities that create even more superb cash flow like laundry facilities, storage, or parking.
Benefit from maintenance cost
When you have multiple renters in one establishment your residents share facilities like walls, a roof, a boiler, landscaping, etc. this protects you a lot of cash compared to if you rented out single-family.