Investing in real state is not a simple investment to make. It requires a lot of money, especially if you wanted extra in return. There are many ways and options which you may choose to invest, but the best investment as suggested by propertycluster would perhaps be on apartment complexes.
Apartment complexes if run correctly would yield more income compared to a single home. The reason behind is really obvious, investing on multiple property assures you of a larger amount of return. In contrast with a single home which can be left without any income for some time, an apartment complex could still generate income even if one or two tenants are lacking. However, aside from the benefits, you should also consider some other things before delving deeper into apartment complexes. Here below are some salient points to consider as discussed by propertycluster.
Location
It is a known fact that location is important in any real estate transaction. In the case of an apartment complex, the important consideration to be made is the rental demand. Be sure to choose a property that has high demand. In order to help you decide, you should consider a property that is nearby a commercial hub, such as office areas and universities.
Income
Income plays an important role in maintaining your property. Aside from profit benefits, the income being generated by your apartment complex would also be the one to be used for maintenance. That is why you should think and anticipate the vacancy cost of your property. Aside from vacancy issues, the salary level of your people should also be considered, especially in dealing with the rental price. Try to check other properties in the neighborhood on how they deal with income concerns.
Leveraging
You should also put an extra consideration on the leverages that you make. Propertycluster advised that, "leveraging your purchase with some debt is healthy, but do not go overboard and stretch your balance sheet excessively. Leverage is a double edged sword, it can certainly help you magnify your profits, but if things go wrong and you are not able to service it, you get into a very precarious situation."
