Top 4 Reasons to Invest in Multi-family Properties Amid the Coronavirus Pandemic

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Spearheaded by the Novel Coronavirus (COVID-19) global pandemic, there is a great deal of uncertainty surrounding the current economic climate. Despite unemployment reaching record highs, and the stock market trending downwards, it’s still a great time to invest in multifamily properties.

Below we will discuss five reasons why you should consider investing in multifamily properties even amid the current COVID-19 pandemic.

  1. Multifamily Properties Tend to Perform Well During Recessions.

Historically, Multifamily Properties perform well during recessions. Therefore, while a majority of property owners were worried about their tenant’s ability to pay rent during the Coronavirus pandemic, at least for now, those worries appear to be somewhat exaggerated. According to NMHC’s Rent Payment Tracker, 87.7% of households paid rent through May 13, 2020, which is a sign that multifamily properties will perform well amid the COVID-19 pandemic.

  1. Safer Investment Compared to the Stock Market.

The Stock Market has been a rollercoaster, and with elections in November, things are not expected to get any better anytime soon. While Multifamily properties are not 100% recession-proof, they are a safer investment compared with stocks in a down market. Multifamily properties provide consistent incomes and tax benefits that act as a hedge against inflation. With the Feds lowering interest rates and pumping trillions of dollars into the economy coupled with the rising cost of living, the value of the dollar will decrease.

  1. Tax Benefits.

Multifamily properties can operate as spectacular tax shelters for investors. Notably, the Tax Jobs and Cuts Act of 2017, allows multifamily investors to take significant “paper losses” and depreciation, in their first year of ownership. In addition to depreciation, cost segregation, interest deduction, repair deductions are other tax benefits that multifamily investors can use to their advantage.

  1. The Time is Right!

The time is now for purchasing multifamily properties. Investors should not expect the market to “bottom out” anytime soon. However, with lower interest rates, and a plethora of opportunities amid the COVID-19 crisis, if you have the capital, this is the perfect time to purchase multifamily properties. Additionally, as the current COVID-19 pandemic is having an international financial effect, Foreign investors are piling into this US real estate play as a coronavirus safe haven. This trend is most likely to continue.

Overall, Multifamily investing, while not completely recession-proof, fare much better than other types of investments during a recession. With this being said, there will be good opportunities in the coming months for multifamily investing, particularly if you desire to sell some stocks and diversify your investment portfolio. To learn more about existing opportunities and off market opportunities in emerging neighborhoods, schedule a call with me here.

 

Schedule a call with me here if you have any interest in obtaining a complimentary valuation for your home or buyer consultation.

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Authored by: Stanley Montfort

 

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About the Author
Stanley Montfort, Real Estate Advisor®
Since the start of the pandemic, Stanley Montfort has played a crucial role in facilitating over one billion dollars worth of brownstone sales in New York City. He is a recognized expert in the city's brownstone and townhouse market, with extensive experience in both sell-side and buy-side brownstone transactions, thanks to his military and law background.

Stanley honed his real estate skills at Leslie J. Garfield, where he established the Harlem Townhouse Market, and has assisted in numerous co-ownership transactions, including more complicated deals involving SROs, seller financing, negotiating with tenants, and leaving all parties satisfied.

With a vibrant and diversified career spanning the legal, banking, and technology industries, Stanley brings a wealth of experience to help his clients achieve their real estate objectives. He applies innovative marketing strategies, strategic thinking, and utmost professionalism and integrity to every deal. As a savvy negotiator with strong analytical skills, Stanley has successfully navigated even the most challenging real estate deals to deliver the desired results.

Moreover, Stanley provides a personalized and engaging real estate experience marked by complete transparency, data-driven financial decisions, and honest conversations. He strives to earn his clients' trust and is committed to ensuring that their needs are fully understood and executed without compromise.

Originally from New Jersey, Stanley is a graduate of Fordham University, where he earned his JD and Masters in International, Political, Economy, and Development. Whether you are looking to earn top dollar for your property or find your dream home, Stanley is the no-brainer choice to help you achieve your real estate goals.