The apartments still remain a good investment. The popularity of this type of investment correlates with demographics and residential trends. Investing in residential property has a lot of visible benefits in comparison to the other types of investments and heavy appreciation is among them. The answer to the question of why investing in apartments is more profitable than in other categories of real estate is quite simple: people always need a place for living.
There are three main fundamental factors that are important in apartment investing. These are value-add, underwriting, and location. The vital factor of investing in real estate is the proper choice of location but the good location in terms of real estate is determined by the type of property – office, apartment, industrial real estate, etc. For flats, it is usually the access to the centers of transportation and to the places of employment.
Value-add is the strategy when the owner increases the value of his property. This can be done by making improvements in an apartment like that results in higher rent.
Underwriting is the process of calculating the income and expenses of the investment and defining the potential return.
To sum up, the apartments are the affordable point of entry for many investors. If you take into consideration all the basic approaches listed above you will receive the long-term asset and the excellent return on your investment.