While there are plenty of reasons to complain about the state of the real estate market these days, there are still a bunch of advantages to the current state of the market. This is because business and investing opportunities don’t suddenly disappear when the market is going through a bumpy patch. For this reason, opportunities such as buying real estate as positive cashflow income vehicles is incredibly popular these days – and one of the most popular past-times is buying up apartment buildings for sale.
The reason apartment buildings for sale are so popular is that along with your investment in the building, you have a bunch of apartments you can soon rent out. As opposed to buying a house or apartment as an investment property, buying an apartment building as an investment property can lead to much greater income opportunities. The greatest benefit about buying an apartment building now is that the prices are almost unprecedentedly low, meaning that you can take a good leap forward in your investment portfolio now, the ideal time to jump in.
But isn’t real estate a bad investment?
The forecast for real estate prices in 2012 is positive, or at least neutral in most areas – meaning that you should take the opportunity now, when prices are at a great low level to buy. Sure the country is gripped by real estate dilemmas, foreclosures and tales of mortgage stress – but what people fail to notice is that a poor market for selling real estate almost invariably leads to opportunities for those in the market to buy.
Just look at the stock market – after a big drop in prices of stocks, bargain hunters step in to buy up undervalued stocks. The same theory applies to real estate. When prices go down, opportunity buyers step in to snap up a bargain.
With prices being where they are at the moment, you can have your choice of apartment buildings for sale – and find one in an area that suits you at a price that fits too. These days you can snap up a property that will return cash to your pocket month after month, even after calculating all costs, outgoings and expenses. A search for positive cashflow apartment buildings will soon find a number of candidates that fit your criteria. Remember that the key to finding a profitable real estate investment is by investing in a property in an area where rental properties are in demand, with low vacancy rates and high rental yields available to property owners.
Stepping into your apartment building purchase with your eyes open
When you buy an apartment building (or any other investment property) then you must be aware of the potential costs you may incur. Remember that when you buy an apartment building you are the proud owner of multiple bathrooms, kitchens and the assorted plumbing and electrical problems that go along with them. In addition, you will need to think about floor coverings and paint for walls and ceilings – plus maintenance of the building, gardens and grounds.
One of the biggest considerations for apartment building owners is how you will manage the rent collection and everyday management of the property. You can take care of this yourself, but be aware that managing an apartment building can in itself be a full-time job at times. It may be more beneficial for you (and your sanity) to employ a management agency to take care of everything for you. Many apartment building owners swear by this as an option and highly recommend the minimal extra cost as being worth it to have peace of mind and a professional approach taken to your real estate investment.