In fact, there may be no better time than now. Historically, real estate has proven to be a safe
haven for investors in a high inflation environment.

The past two years have been nothing short of a real estate rollercoaster ride. From interest
rates falling to a record low sparking an unprecedented sellers’ market to the recent upswing of
rates pricing out competition when supply is very low, what is often considered a relatively
predictable market left many would-be buyers in the cold.

As we adapt to the price of “everything” going up, real estate pricing is poised to also remain
high well into the next year. Balancing your budget while finding a way to save for the future is
surely top of mind for many people these days.

Why invest in real estate now? In the short term, rising interest rates, supply chain issues, and
the potential for a recession will keep many potential buyers in rentals. In the long term, even
after the economy begins to stabilize the need for housing will always remain.
Investing in real estate, specifically multifamily properties can prove to be an especially lucrative
strategy in today’s market. There are a few unique benefits that multifamily properties offer.

Value Appreciation
Multifamily real estate investments appreciate in line with the Consumer Price Index (CPI). The
CPI measures the change in the prices of goods and services paid by consumers over time.
From September 2021 to September 2022 the price for shelter rose 6.6 percent. As costs rise
so does value and inevitably income.

Tax Benefits
Your return on investment for a multifamily property isn’t limited to your incoming cash flow from
rent. There are many ways to maximize your rental property’s tax benefits, the most common
being depreciation. The physical structure of the property itself can be expensed by depreciating
the value of the property, and in turn reducing your tax liability.

Opportunity for Equity
The saying “You get what you put in” without a doubt applies to real estate investments. Unlike
a stock, real estate offers the opportunity to tangibly add value, therefore increasing your
potential income. When considering a multifamily property, you have multiple opportunities for
added value.

No matter the environment, market, or location, if you plan to invest in real estate, having a
proven strategy is critical. Having the right team of professionals in your corner can turn your
investment into a profitable long-term appreciating asset.

The real estate professionals at STL Mogul are St. Louis’s multifamily experts. Get in touch
today to see how we can help you invest in your success.

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