What to know before investing in multi-family properties

Are you interested in buying an investment property with monthly income potential? One common option is to look at the benefits of a multi-family property. This can certainly be a strong investment decision, particularly for those interested in generating consistent cash flow. But there are also risks a potential investor should bear in mind.

Hondarribia-Irun - What to know before investing in multi-family properties

The potential rewards

Buying a multi-family property remains a popular way to invest in real estate, particularly in urban areas with high demand for rental units.

Cash flow

In popular European markets steady rents has made now a good time to invest in apartment properties. Indeed, cash flow is a prime reward for those choosing this investment route, even more so than equity appreciation. For some other investors the most important reason investing in a multi-property is the increasing value. 

Easy maintenance

In comparison to a portfolio consisting of multiple individual properties in different cities, a single multi-family property can be easier to maintain. You’ll only need a single property manager, whether you're buying houses or properties with more units. 

Potential tax benefits

In many cases you could benefit from tax incentives when investing in a multi-family property. By providing city residents with affordable housing, you can deduct many costs of running and maintenance. This will depend on the complex’s size, condition, location and whether it qualifies as commercial or residential, so be sure to hire a competent CPA to assist you. 

The potential risks

While there are many potential perks to investing in multi-family properties, it’s vital to also consider the flip side to see if it fits into your long-term strategy.

Development of real estate value

In 2017, interest rates in Europe are lower than ever before. Currently there are no signs for a change of that situation in the new year. Risks for investors are thus manageable and the return rates are promising. But there are some more criteria crucial for the price development of apartment buildings. Supply and demand of the investment object's respective location are especially significant. Metropolises such as Munich, Barcelona and Paris are very much in demand which increases their factor and lowers their net return. 

The property's condition will also affect the return. When buying a new high quality property, the purchase costs may be high but you will save expensive renovations in the near future. When investing in a multi-family home, many different factors are adding up, making it a complex endeavour. We're glad to advise you individually in your property investment. 

Contact us now

Engel & Völkers Hondarribia-Irun
Email
Back
Contact
Enter your contact details here
Thank you for your request. We will contact you shortly.

Your Engel & Völkers Team
Salutation
  • Mr.
  • Mrs.

In accordance with the Organic Law 15/1999 on Data Protection, MS Exclusive Homes SL has registered its files with the Spanish Agency for the Protection of Data, proving that we have undertaken all the technical and organizational measures necessary for the company to comply with the Data Protection Law.

Contact Forms

Contact details obtained through the Contact Forms available will be used to attend your request and to subscribe you to our Newsletter, unless you state that you do not want to receive any.

Data Protection Declaration 

By using our website, you expressly consent to the storage and use of your data described in this declaration. Your data will be used for the purposes described in detail below. 

  
IP Addresses 

IP addresses are required for problem diagnoses, website administration and demographic information. When you visit our site, we recognize only your domain name, but not your e-mail address. We only see your e-mail address if you directly give it to us by filling out a form or sending an e-mail. 
  
Cookies 

Cookies are used for personalized content, to avoid repeated password entry or to adjust the information offer to user behavior. 
  
User registration

Our site contains forms which you can fill out to request information. When you register, we will forward the information requested. 
  
E-mail Addresses 

If you provide us with your e-mail address, we will communicate with you via e-mail. We will not pass on your e-mail address to third parties outside of Engel & Völkers. If you no longer wish to receive e-mails from us, you can cancel this at any time. 

Information and questions 

If you have any questions about this data protection declaration, for instance regarding inspection or updating of your personal data, please write to the following address: 
Engel & Völkers Guipuzcoa 
MS Exclusive Homes S.L. 

Avenida Zurriola 6

20002 San Sebastian
VAT: ESB75114272
or send an e-mail to: sansebastian@engelvoelkers.com

Send now

We know the true value of your property

Do you know how much your property is currently worth? No matter if you just want to inform yourself about the current market-price, or if you wish to sell your property for the best price: our experienced marketing experts are happy to assist you with a free and non-binding valuation.
Send now
Back
Contact
Enter your contact details here
Thank you for your request. We will contact you shortly.

Your Engel & Völkers Team
Salutation
  • Mr.
  • Mrs.
Please enter the property information.

In accordance with the Organic Law 15/1999 on Data Protection, MS Exclusive Homes SL has registered its files with the Spanish Agency for the Protection of Data, proving that we have undertaken all the technical and organizational measures necessary for the company to comply with the Data Protection Law.

Contact Forms

Contact details obtained through the Contact Forms available will be used to attend your request and to subscribe you to our Newsletter, unless you state that you do not want to receive any.

Data Protection Declaration 

By using our website, you expressly consent to the storage and use of your data described in this declaration. Your data will be used for the purposes described in detail below. 

  
IP Addresses 

IP addresses are required for problem diagnoses, website administration and demographic information. When you visit our site, we recognize only your domain name, but not your e-mail address. We only see your e-mail address if you directly give it to us by filling out a form or sending an e-mail. 
  
Cookies 

Cookies are used for personalized content, to avoid repeated password entry or to adjust the information offer to user behavior. 
  
User registration

Our site contains forms which you can fill out to request information. When you register, we will forward the information requested. 
  
E-mail Addresses 

If you provide us with your e-mail address, we will communicate with you via e-mail. We will not pass on your e-mail address to third parties outside of Engel & Völkers. If you no longer wish to receive e-mails from us, you can cancel this at any time. 

Information and questions 

If you have any questions about this data protection declaration, for instance regarding inspection or updating of your personal data, please write to the following address: 
Engel & Völkers Guipuzcoa 
MS Exclusive Homes S.L. 

Avenida Zurriola 6

20002 San Sebastian
VAT: ESB75114272
or send an e-mail to: sansebastian@engelvoelkers.com

Send now

Follow us on social media


Array
(
    [EUNDV] => Array
        (
            [67d842e2b887a402186a2820b1713d693dd854a5_csrf_offer-form] => MTM5MjE5NzU3NkJ4d29xancwTDVhZWFIRzEycXAxcW9SdElHdVBqMTdV
            [67d842e2b887a402186a2820b1713d693dd854a5_csrf_contact-form] => MTM5MjE5NzU3NnlHcUR0Y2VlTXVPUndLMHZkMW9zMnRmRlgxaUcwaFVG
        )

)