across the roofs

Are you interested in buying an investment property with monthly income potential? One common option is to look at the benefits of an apartment block. This can certainly be a strong investment decision, particularly for those interested in generating consistent cash flow. But there are also risks a potential investor should bear in mind.

The potential rewards

Buying an apartment block remains a popular way to invest in real estate, particularly in urban areas with high demand for rental units.

Cash flow

Steady rental income and less vacant units has made now a good time to invest. Indeed, cash flow is a prime reward for those choosing this investment route, even more so than equity appreciation. For some other investors the most important reason investing in a multi-property is the increasing value. 

Easy maintenance

In comparison to a portfolio consisting of multiple individual properties in different cities, a single multi-family property can be easier to maintain. You’ll only need a single property manager, whether you're buying houses or properties with more units. 

Potential tax benefits

In many cases you could benefit from tax incentives when investing in an apartment block. By providing city residents with affordable housing, you can deduct many costs of running and maintenance. This will depend on the complex’s size, condition, location and whether it qualifies as commercial or residential.

The potential risks

While there are many potential perks to investing in apartment blocks, it’s vital to also consider the flip side to see if it fits into your long-term strategy.

Development of real estate value

In 2018, interest rates in Europe are still historical low as before. Currently there are no signs for a change of that situation in the new year. Risks for investors are thus manageable and the return rates are promising. But there are some more criteria crucial for the price development of apartment buildings. Supply and demand of the investment object's respective location are especially significant. Metropolises such as Munich, Barcelona and Paris are very much in demand which increases their factor and lowers their net return. 

The property's condition will also affect the return. When buying a new high quality property, the purchase costs may be high but you will save expensive renovations in the near future. When investing in aan apartment block, many different factors are adding up, making it a complex endeavour. We're glad to advise you individually in your property investment. 

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Contact

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A last piece of information

We are often on the road, but always reachable. Our headquarters are in the near of the rediculus horse race track southern in Leipzig. Our mailing address is Brandvorwerkstr. 52/54, 04275 Leipzig, Germany. Emailing us is faster, though.

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