Why Investors Buy Apartments in Today’s Artificial Market

Multifamily flyer photo copy

The main reason for owning multifamily property has changed …

Since the tax change of 1986, until recently, the top 4 reasons for buying apartments were:

  • Cash Flow
  • Appreciation
  • Principle Reduction
  • Tax Deferral

These reasons have flipped in order. Now, they are:

  • Appreciation
  • Principle Reduction
  • Tax Deferral
  • Cash Flow (if there is any!)

The new, overiding motivation for owning real estate is Equity Preservation!

Why the change? One reason … Artificiality