Why Real Estate
Why Invest in Apartment Communities
Multi-family residential real estate is one of the safest investments there is for several reasons:
- It serves the basic human need for shelter. No matter how much the economy fluctuates, there will always be people seeking apartments to rent.
- Real estate is a transparent, straightforward, simple investment that is easy to understand and control, unlike many other higher-risk investments that are two or three steps removed from the actual product or company in which one is investing.
- The preservation of capital is basically assured. Because of inflation, most properties increase in value over time; with an initial investment left in the property for approximately 10 years or more, history has shown that the property value should increase substantially.
- Multi-family residential properties generate revenue on a regular basis. While the capital investment is well protected and growing, investors generally receive increasing distributions.
Tax Advantages of Investing in Real Estate
Federal income tax laws offer real estate investments more favorable status than other investments. Some of these advantages include:
- Deduction for interest paid on loans to acquire property
- Deferment of taxes from refinancing, tax-free exchanges and estate taxes
- Annual tax deductions for depreciation of property
“A lot of this current financial mess is because of the complexity and opaqueness of most investments, so you didn't really know what you were getting. A lot of people thought they had a Babe Ruth, when in reality they had a Mark McGuire. If you invest in real estate the right way, when you think you have a Babe Ruth, you have a Babe Ruth.”
— Richard B. Francis
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