We asked our 45,000 Multifamily Minute readers which aspects of apartment buildings are the most important for their investment decisions.
Last week, I asked our 45,000ish Multifamily Minute subscribers to let me know what's the most important factor they look at when buying a multifamily property.
Survey ResultsThe results are below.
Property Aspect | Percent of Respondents |
|---|---|
Property location | 51.1% |
Financing opportunities | 16.2% |
Market growth potential | 15.3% |
Property price | 9.3% |
Property condition | 8.1% |
I bet you'll agree: The indication that multifamily investors prioritize location over just about everything else is hardly surprising. A well-placed property in poor condition can often outperform a well-maintained asset in the middle of nowhere.
It's not hard to understand the importance of location, but location itself is quite a broad category. It can be a stand in for a number of other factors. These can include the local crime rate, availability of public transportation, or even how close the nearest quality schools are.In second place in our results? Financing opportunities.This one's interesting, because it outperformed other factors like anticipated market performance and even the condition of the building. It makes sense in a way, though: You can invest in repairing or renovating a dated asset and turn things around relatively quickly, but if you're stuck with a bad financing package, that could stick with you for years.Different loan products offer different benefits depending on location, and so it pays to explore your options, all of them, when it's time to buy or refinance.Sign Up for the Multifamily MinuteNot getting our weekly newsletter? Let's fix that real quick. Drop your details in the form below, and I'll send you the latest multifamily trends each week on Tuesday.
Our Previous Survey
Last week, we talked energy efficiency in the multifamily sector. Turns out that quite a few of us are very likely to implement sustainable features after buying a property. It's logical, because this can translate into both lower operating costs and higher retention.