CONSISTENT PERFORMANCE MAKES IT A SECURE INVESTMENT
Real estate investing may be a proven powerful tool for accumulating consistent and long-term wealth. This creates a consistent and reliable source of income without requiring much effort and also has the possibility of increasing in worth as time goes on. Unlike stocks and bonds, which are volatile daily, real estate is a tangible asset that can be monetized by renting, selling, or refinancing, making it a far more stable investment.
Furthermore, investing in multifamily real estate assets offers a once-in-a-lifetime opportunity to achieve financial security and prosperity. They not only provide the possibility of consistent cash flow and long-term value appreciation, but they also provide a safe and dependable investment option for those looking to secure their financial future.
Multifamily housing addresses the fundamental human necessity of “a roof over the head”
Regardless of whether the global economy is improving or declining, individuals will always require a residence to inhabit. Multifamily assets had a default rate of 0.02% during the last latest housing crisis, compared to single-family homes at 6%.
The Sharpe Ratio is a popular method for calculating risk-adjusted profits. The graphic depicts the higher performing assets when risk versus yield of different investment instruments is outlined.
20 YEAR RETURN/RISK PROFILE
With house ownership declining for the first time in history, the United States now has more renters than homeowners
Demand for multifamily housing has been continually increasing and is not anticipated to decrease in the next ten years. Furthermore, the United States constructs 350,000 fewer housing units each year than is needed to satisfy market demand.
The delinquency rate is the proportion of all existing debts written off by a lender after a substantial period of failed payments. If a debt payment is 270 days late, it is usually deemed in delinquency/default.
HISTORICAL MORTGAGE DEFAULT RATE
Residential vs Commercial Real Estate
Given the limited supply of multifamily housing, now is the time to double the performance of your portfolio
The risks and returns of fractional real estate ownership are lower than those of most other traditional asset classes. If you have stock market investments or need a hedge against currency inflation, multifamily real estate can help you reduce risk while increasing overall returns.
In recent years, there has been a record-breaking demand for apartments. The graph shows that the rate of apartment absorption has been steadily increasing across all age groups.
RENTERS BY DEMOGRAPHIC
Across Major Asset Classes