The world of the stock market is full of dangers and risks. You never know when the stock market is going to crash. Real estate is not as unstable as that. Yes, you will be making more profit through the short-term stock market, but the considerably higher risk associated with this market makes it a difficult option for many. 

Reasons why multifamily investing is better:

Here are a few reasons why multifamily investing is better than the stock market right now:

Assets’ worth even in the worst case:

We all go into the world of investment while understanding the risks. With the multifamily investment, even if the worst happens, these investments are still worth something – whether it be the land plot, some materials used in the apartments, or passive income. 

With the stock market, if the company decides to liquidate its assets or go bankrupt, you will lose all that money – as the stock’s price reaches sub-dollar ranges. You see the stock market crashing every other time. 

Income benefits:

With multifamily investing, you get access to your apartments to rent out or further enhance your real estate empire. With the stock market, you do not get those benefits. When you don’t want to invest in multifamily anymore, you can always sell that property for almost the same value you bought it for.

Excellent resale value:

Everyone knows that the real estate market always goes up instead of going down. It is especially true for apartments because studies show that more youth invest in renting apartments instead of buying their own condo/house for the past 20 years. 

As we mentioned earlier, you benefit from earning passive income by renting your multifamily investment and selling it when the prices have reached a high. It’s a win-win situation. 

Low tax problems:

The stock market problem is that you have to return 100% of long-term or short-term capital gains when you sell those stocks. If you are selling in the long-term, you even have to pay around 15% tax, depending on your state and laws. 

• With multifamily investing, you don’t have to pay such ridiculous amounts of taxes to the government. In fact, in many countries, there is no tax on multifamily buildings. 
• Similarly, in many states of the United States, you don’t pay any tax on the profit generated from multifamily investments. 

Return policy:

The average total return of multifamily in 2017 was about 9.75%. It is considerably higher than anything you could get from a stable stock market.

• When you invest in the multifamily market, you will employ more workforce, ensuring your country’s work-friendly environment.
• Creating a job in the market is a premium that not many get to savor. You will have more benefits with your businesses also.

Final Thoughts:

We hope that this article has helped you understand why investing in multifamily apartments is a good option and why you should start investing. If you have any further queries, you can always hit us up.