What are the Disadvantages of Apartment Investment?

[Suba]

Apartments are a residence that is much sought after by urban people who live in cities, they also provide complete living facilities such as fitness centers and gyms, swimming pools and shopping centers, etc. The increasingly high demand for apartments also causes apartment prices to rise. However, if you intend to become an apartment investor, you must also study the risks or disadvantages of apartment investment so that you can minimize losses that will occur.

 

[Starmix]

One disadvantage is if the apartment is not insured, there is 100 % risk. There is no second chance for the apartment to be saved. The apartment owner is also obligated to pay the renter's damages to the properties that are gotten by fire.

 

[Suba]

One disadvantage is if the apartment is not insured, there is 100 % risk. There is no second chance for the apartment to be saved. The apartment owner is also obligated to pay the renter's damages to the properties that are gotten by fire.

That's right, that's why we have to research the apartment purchase contract, what insurance is available, and we often encounter a layout determined by the developer so we can't change it, if it is used as collateral for a bank loan it will be considered small by the bank.

 

[freelancermaria]

My aunt owns a lot of rental properties, especially apartments. It is her bread and butter. They are located in the city, close to major establishments, such as hospitals, malls, schools, etc.

 

[neku]

In some cases, the tenant may not take care of the property and damage the appliance, plumbing and other fixtures. Also if the apartment owner cannot find a tenant , they still have to pay maintenance expenses.

 

[Nomad]

If you want to invest in apartments, you will have to consider two things, one, does it have a resell value, and two, can you rent it out to generate passive income? Yo should invest only when yo have positive answers to these questions.

 

[neurosurgeon]

Investing in apartment also comes with vacancy risks and maintenance cost which is not really economic friendly.

 

[Starmix]

That's right, that's why we have to research the apartment purchase contract, what insurance is available, and we often encounter a layout determined by the developer so we can't change it, if it is used as collateral for a bank loan it will be considered small by the bank.

We can also ensure our properties while staying in an apartment, we just ask permission from the owner in case he fails to ensure his apartment. We have to take the initiative or suffer losses.

 

[Kirubel]

Some disadvantages of apartment investment include the potential for property damage and maintenance costs, difficulty in finding and retaining good tenants, and potential for fluctuations in rental market demand and property values.

 

[SHAHID987]

Apartment investment is one of the best investment I personally did it and get money out of it. The disadvantages are as when you give it on rent you may not get regular money in the form of rent. And when you decide to sell it, it's price may be much more low.

 

[Starmix]

If my capital is sufficient, I want to buy an apartment and invest it. It seems profitable. I just need maintenance of it and would hire someone then if I could afford it because the cost of an apartment is in millions.