Disadvantages of Investing in an Apartment

The Brighter Side
According to data from the National Council of Real Estate Investment Fiduciaries, for the period between 1984 to 2004, apartments provided a higher total return to investors, than the average for all other types of property.
With the current boom in real estate, many people are keen to invest in an apartment. Apartment investment has numerous advantages, making it one of the most desired investments in the real estate market. A steady cash flow is perhaps the biggest draw. You receive a said amount of money from your tenants, and depending upon the number of flats in the apartment building, this can be a significantly big amount. What’s more, investing in an apartment can also fetch you good profits when you sell it, due to a steady appreciation in its value. You can also save taxes when you sell an apartment and invest the money into acquiring another property.

However, every investment has two sides to it, and an apartment is no different. Let us have a look at the major drawbacks of renting out an apartment.

Demerits of Investing in an Apartment

Financing is Not Easy
It’s important to know that apartments are sold as