Seven Wealth Creating Benefits of Multi-Apartment Investments

Apartment investing for living purposes provides numerous benefits, but real money making benefits accrue to investors who opt for purchase of multi-units. Ownership of multiple units, generates revenue in the form of rental income while also providing long term gain in the form of higher investment value as prices appreciate.

Property investment  reveals thousands of rags-to-riches stories that now lure a fast increasing number of prospective investors who wish to become rich fast. This is possible through one of the numerous property investing strategies which apply to apartments as well, like buy-and-hold, flipping and so on.

Multi-unit investing is one of the relatively more hassle-free ways of making money faster and increase wealth. The easiest way is to buy one apartment first on a mortgage, rent it out and use the rental to pay off the mortgage, before buying another unit. Over time, the number of units multiplies and so does the wealth.

Some of the wealth creating features of multi-unit investing as opposed to a single house or landed property are listed below:

  1. Apartments are concentrated over a smaller area and with common areas, become easier to manage. Cost effective options like using the same staff for maintenance, providing common facilities etc help in cutting costs.
  2. Cash flow in the form of rent increases since rentals from two and more apartments will be more than a single unit.
  3. With multiple tenants, the risk of cash flow reducing when a single tenant leaves comes down. Even if one leaves the others will remain occupied and hence the income stream continues.
  4. It is possible to benefit from economies of scale. For instance a painting job of five units will be relatively cheaper. Similarly, engaging a single professional company to manage all of them will be more reasonable with multiple units close together especially when compared to individual houses spread out in different localities.
  5. With lower prices per square foot, it is possible to buy more individual units as compared to a single house. This helps to spread out the risk as well.
  6. Financial freedom comes within reach sooner as multiple units appreciate in value, leading to higher capital appreciation.
  7. It becomes possible to benefit from higher leverage with multi-units than a single property.

A close look at multi-unit owners shows how their incomes and wealth has multiplied manifold while single unit owners have seen their wealth gradually crawl upwards with many setbacks in between.

>>>Meet Grant Hoey – Apartment Investor and Mentor in March - click here

For further reading from, click on the articles below:Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here

Tags: , , , , , ,

About Property Tutors

“PropertyTutors Limited believes the information in this publication is correct, and it has reasonable grounds for any opinion or recommendation found within this publication on the date of this publication. However, no liability is accepted for any loss or damage incurred by any person as a result of any error in any information, opinion or recommendation in this publication. Nothing in this publication is, or should be taken as, an offer, invitation or recommendation to buy, sell or retain any investment in or make any deposit with any person. The information contained in this publication is general in nature. It may not be relevant to individual circumstances. Before making any investment, insurance or other financial decisions, you should consult a professional financial adviser. This publication is for the use of persons in New Zealand only. Copyright in this publication is owned by PropertyTutors Limited. You must not reproduce or distribute content from this publication or any part of it without prior permission.”