Buying an apartment building.

Property provides attractive investment opportunities.

Whether you opt for a single-family house, a condominium, a semi-detached house or even an apartment building: property provides attractive investment opportunities, and not just because of low mortgage rates. Thanks to rental income, investors benefit from regular returns. If you are intending to buy an apartment building, then choose a property in a good location and get an accurate picture of the immediate locality before making any purchase. This includes the view that tenants will enjoy from your property, but also, and more importantly, the economic strength of the region, the tax regime and sociodemographic factors that may give some pointers to your pool of potential tenants. Once you have an initial overview, you should think about how you may want to maintain the property. After all, an apartment building also involves administrative expenses, which you should factor into your personal calculation. If you appoint another party to deal with administrative matters, the resulting additional costs will eat into your income. If you are going to take care of property maintenance yourself, you will need to set aside the necessary time.

Even though an apartment building is associated with certain expenses, you will benefit from regular rental income as a property investor, and will also be protected against inflation, as rents tend to rise in line with prices in general. Also, property is far less subject to fluctuation compared with, say, share-based funds. But remember that property is an illiquid asset class: a quick sale will not be possible in most cases, without significant reductions in the asking price. Contact our experienced team of advisors with any questions about buying, valuing and financing your apartment building.