The Top 7 Reasons to Invest in Garden Apartments

Investing in garden apartments can be a smart move, offering attractive rental yields and the potential for long-term appreciation

May 3, 2023

Garden Apartments

What are Garden Apartments?

Garden apartments, also known as garden-style apartments, are a type of multifamily real estate that are a series of low-rise buildings spread across a larger piece of land. Garden apartments are lower in density than other types of multifamily housing, such as high or mid-rise apartments, and have more green space and outdoor grounds due to their lower density.

Garden apartments are appealing to investors for several reasons. In fact, if you are on the hunt for a stable asset for investment, garden units are a perfect choice. Let’s talk about this in detail!

7 Reasons to Invest in Garden Apartments

1. Land Appreciation

Land appreciation is one of the most important factors to consider when investing in garden-style apartments. Land appreciation for these types of apartments over time is typically high compared to other apartment complex styles.

2. Garden Apartments are Attractive to Families

In today’s environment, people are showing a preference for open space. Garden apartments located in desirable neighborhoods, close to urban areas offer such and are in high demand.

One of the drivers of high demand has been because they offer a more family-friendly living environment than other types of multifamily housing. Garden apartments have exterior access, outdoor communal areas, playgrounds for children, and pet-friendly areas for families to enjoy themselves.

Garden apartments have easy accessibility. Families won’t ever have to worry about trudging up and down numerous flights of stairs because garden units are generally 1 to 4 stories and typically 2 or 3 stories above street level.

Garden-style apartments are less likely to be impacted by neighborhood noise from new construction or other activities in the neighborhood compared to high-density locations.

3. Garden Apartments Offer Tax Benefits

Garden apartments and investment real estate in general offer several tax benefits, making them an attractive investment for most. For instance, the depreciation deductions available for garden-style apartments. Additionally, investors can defer capital gains taxes by investing in garden-style apartments through a 1031 exchange. In a 1031 exchange, an investor can sell a property they own and reinvest the earnings in a new property; this results in no tax implementation. Overall, these apartments are considered long-term capital assets, which means they are subject to lower capital gains taxes.

4. Garden Apartments Can Generate Stable Passive Income.

One of the most appealing aspects of investing in garden-style apartments is the stable, passive income that they can provide. Garden apartments are typically less volatile than other types of multifamily housing or commercial real estate investments.

The stable income is influenced by several factors, including the lower density of these apartments generally means lower operating costs. The fact that garden-style apartments have a broad level of demand means they are lower risk and provide stable returns.

5. Garden Apartments are Low Maintenance.

Another appealing aspect of garden-style apartments is that they require less maintenance than other types of multifamily housing. The lower density of garden-style apartments means there is a lower percentage of common areas that have to be maintained compared to higher-density buildings. Lower maintenance means lower expenses leading to higher ROI.

6. Garden Apartments are Typically Professionally Managed.

One of the most significant reasons to invest in garden apartments is if the building is large enough good professional management is generally available.

Professional property management companies typically manage garden-style apartments. Professional management companies have the experience and expertise to maximize return on investment. Thus, your investment is in good hands.

7. Garden Apartments Bring Community Together.

Community involvement is another essential factor to consider when investing in garden apartments. A nice Tenant community can help to attract and retain tenants. It can create a sense of belonging among tenants, which increases satisfaction and loyalty.

Garden Apartments: Conclusion

Garden apartments are popular among renters which ensures steady demand. Summerfield Management has the expertise and the workforce to manage garden-style apartments successfully. Consult our expert property managers today!

Garden Apartments: FAQs

Q: What are garden apartments?

A: A garden apartment is a type of multi-family housing that is of lower density and located on a larger piece of land. They generally consist of a number of 2 to 4-story low-rise buildings with apartments facing communal gardens, outdoor amenities, and green space.

Q: What are the pros of garden apartments?

A: Living in a garden apartment comes with several pros. For instance, the rents are generally lower than higher-density apartments. Garden flats are also ideal for people who appreciate easy access to outdoor space and amenities.

Q: What are the reasons to invest in garden apartments?

A: Compared to other real estate investments they are considered lower risk and easier to run but with all the same tax benefits, potential ROI, and a stable steady passive income.