An Interest for Apartment Buildings

immeuble locatif

Lately, the newspaper Les affaires stated that pension funds and real estate investment trusts have been actively searching for multi-unit residential buildings in Québec. Their goal is to increase the property’s profitability. Indeed, many investors are purchasing income properties.

Bigger players have the advantage over private owners when it comes to buying properties of 150 to 1500 units, as these big investors can have better interest rates. They can also save more on management and maintenance fees.

Why Should You Invest in Income Properties?

Institutions are more and more interested in purchasing income properties because these investments involve very few risks. Indeed, real estate properties almost always increase in value, they are quite profitable, and they have a high capital gain. In short, the value of these properties will double or even triple from the original purchase price.

How to Analyse the Profitability of an Income Property?

To help those who wish to start investing in income properties, Patrick Denoncourt, the author of Acheter un petit immeuble à la mesure de ses moyens, offers a method to calculate the profitability of the assets by only taking into account the rental income. Although simple, this method does not take into account the expenses that could eat away at your income.

Our team recommends that you take into account your income and expenses in your analysis to ensure that you have a realistic picture of the coveted property’s profitability.

Magex Technologies offers an easy solution. Zoom-Imm is an income property profitability analysis software.

It calculates the property’s profitability based on many ratios, such as the return on the down payment after capitalization and capital gain, which takes into account income and expenses.

With a complete, clear, and precise report, you can make the right choice.

Income property investors, get ready to invest wisely!

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