Investing in ApartmentsFor many families buying an apartment or a house represents by far the largest capital expense in a lifetime. Furthermore, their house represents their largest asset, which they can use as collateral to secure loans and cover emergency cash needs. From this point of view, the investment aspects of the purchase of an apartment or a house have to be seriously taken into account, even if the primary purpose of the purchase is owner occupancy. Second, apartment units (not apartment buildings) represent the most accessible property investments to small investors because of the smaller capital requirements. The broader principles of investing for double-digit returns apply to apartment investments too. However, how some of these broader principles translate into specific terms may vary depending on the size and the type of the property considered. We can distinguish the following categories of apartment investments in terms of size and/or typology. 1. Apartment Unit |
