WHY MULTIFAMILY
Multifamily Real Estate
A basic human need
Apartments address the basic human need for "a roof over our head". Whether the economy is going up or down, people need a place to live. During the last housing crisis, multifamily investments had a default rate of .02% compared to single family homes at 6%.
Not to mention that demand for apartments is at an all-time high, population is continuing to increase which drives the demand for apartment living higher and higher. Low vacancy rates equals greater cashflow as well as equity growth, which translates to higher returns for our investors.
TAX ADVANTAGED INCOME
Investors utilizing leverage depreciation, cost-segregation and Section 1031 exchanges can defer taxation on much of their real estate income into perpetuity.
HEDGE AGAINST INFLATION
Multifamily property values have proven to be virtually a perfect inflation hedge - .98 correlation since 1978 when reliable data became available.
HEDGE AGAINST RECESSION
JP Morgan looked at the worst five-year periods for various investments from 1977-2012 and calculated total return (including cash flow). $100 invested in apartments at the beginning of the worst five-year period for real estate was worth $110 at the end. A portfolio of 60% stocks/40% bonds was worth $94 at the end of its worst five years.
SUPERIOR RISK-ADJUSTED RETURNS
For decades, multifamily has exhibited the least volatility and highest risk-adjusted returns of all real estate asset classes. This long-term performance along with tax and hedging benefits has been amplified in the short term.
TAX ADVANTAGED INCOME
Investors utilizing leverage depreciation, cost-segregation and Section 1031 exchanges can defer taxation on much of their real estate income into perpetuity.
HEDGE AGAINST INFLATION
Multifamily property values have proven to be virtually a perfect inflation hedge - .98 correlation since 1978 when reliable data became available.
HEDGE AGAINST RECESSION
JP Morgan looked at the worst five-year periods for various investments from 1977-2012 and calculated total return (including cash flow). $100 invested in apartments at the beginning of the worst five-year period for real estate was worth $110 at the end. A portfolio of 60% stocks/40% bonds was worth $94 at the end of its worst five years.
SUPERIOR RISK-ADJUSTED RETURNS
For decades, multifamily has exhibited the least volatility and highest risk-adjusted returns of all real estate asset classes. This long-term performance along with tax and hedging benefits has been amplified in the short term.
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©2024 Add True Value Properties. All Rights Reserved.
©2024 Add True Value Properties. All Rights Reserved.