Are you considering investing in real estate in Decatur, GA or its neighboring communities? There are many good reasons why you should put your money in a condominium or apartment instead of a single-family property. Here are some of them:
- Easier to finance
- Easier to manage
- Continuous demand
- Value retention
- Tax advantages
- You can write off the expenses related to operating a property
- ou can depreciate the building and as many of the building’s features as possible, and write off part of the depreciation
- If you sell an apartment building and use the proceeds to buy another investment property, you can defer taxes on capital gains and depreciation recapture
- Positive impact on the community
While an apartment or condominium building costs so much more than a single-family home, acquiring financing for one is also generally easier. Multi-family properties are viewed as less risky investments than single- family properties, with less chances of foreclosure. As they can accommodate more tenants, the effects of a vacancy or two on the property’s cash flow can be mitigated by the income coming from the occupied units. On the other hand, a single-family property makes zero income when its lone tenant leaves.
A property with 10 or more units can be managed by a single property manager or management company. If you have 10 individual rental homes, you’ll most likely need more than one manager. A professional manager can relieve you of the burden of managing the rental’s day-to- day operations, including maintenance, tenant issues, rent collection, tenant screening, and so on. If you own only one or two single-family units, it may not be cost-efficient to get the services of a professional manager. With the bigger income of a multi-family property, professional management fees will not eat up too much of your profit.
Multi-family housing caters to the needs of a growing population, particularly in booming cities and neighborhoods like Decatur and Alpharetta in Georgia. People rent out of necessity – they may still be building their savings to buy their own homes, or the housing cost in the area may be too steep for their budget. Condos are also gaining popularity for the convenience and amenities they offer. They’re in high demand among millennials who are just starting to establish their careers, and among baby-boomers who are looking to downsize and move to a
smaller, easier-to-manage space.
With the constant and increasing demand for apartments and condos, you can be assured that the property will keep and even enhance its value over time. This is especially true if the property is in a good location with easy access to business and entertainment centers, schools, and public
transportation. It’s important, however, to keep the property well- maintained and in good condition, and to update its features to make it attractive to new renters and keep existing ones happy.
Multi-family properties address a housing need, so the government rewards and encourages investors with tax incentives.
Multi-family property developments can add vitality to the community. With more people moving to the area for the added housing opportunities, commercial establishments and businesses often follow suit, and this means more jobs and more economic activity in the area.
Are you looking to invest in a multi-family property in Decatur, Alpharetta, East Atlanta, and other communities in DeKalb and Fulton Counties? We can help. Contact us here or call us at (404) 321 – 0030 or send an email to KarafotiasRealty@KarafotiasRealty.com.