How Multifamily Real Estate Investment Is Becoming the New Orange?

Published December 1, 2016
by Mark Kenney
How Multifamily Real Estate Investment Is Becoming the New Orange? First time investors can often be blinded by the allure of investing in high profile complexes, luxury villas, and beach side properties hoping that it might increase the rate of return on their investment. Unfortunately, multifamily real estate, which is a promising investment opportunity for most investors often flies under the radar. Investments in multifamily real estate are able to offer long term returns on a consistent basis.

A Growing Base

A research that was recently conducted by the National Council of Real Estate Investment Fiduciaries shows that the average returns being generated from multifamily housing units have surpassed those generated by office building investments, over the last five years. This rise in investor allure of multifamily real estate investing is down to a number of different factors.

One of the factors for this increase in demand is simple, there is always a need for people to buy and or rent a multifamily property. Consistent demand is not affected by the prevalent economic conditions because irrespective of the state of the economy, people are always on the lookout for a place to live. Unlike other investment opportunities that prove a bankable bet when the economy is thriving, real estate investments in multifamily housing units will be plausible and prudent invest even when the economy is down.

This is because when the standards of living are high and the wage rate going up, people can often look to finance their own personal houses. It is only when the going gets tough that they can turn to a cheaper housing unit.

Dynamic Business Models

The thing about multifamily investments is that they aren’t the same as large office spaces, or even beach view single owner homes. Instead they are nimble business models which can allow for dynamic pricing. If you have invested in a family home, the only recurring expense you may have to bear is the maintenance cost of the homes. This means there is a lot of room for the investor to play around with the prices, attracting customers taking into account the market demand and the amount people are willing to pay.

The cash flow advantage of multifamily real estate is another added reason to answer how multifamily real estate investing has become the new way to invest. If you are planning on investing money in real estate, make sure you make an informed decision.  How Multifamily Real Estate Investment Is Becoming the New Orange?

About the Author

Mark Kenney
Mark Kenney is a seasoned real estate investor, entrepreneur and founder of Think Multifamily. Mark started his real estate career over 25 years ago and has extensive experience in property valuation, acquisition, and operations. He has a passion for helping others succeed in the multifamily arena.