APARTMENTS AS INVESTMENT PERSEVERANCE, DURABILITY MAKES SHELTER ERIC DOMEIER
nvesting in apartments is not
for the faint of heart. But
apartments might be a very
good
option
for
the
long-term
investor
interested in a stable place to park their money.
With good management and proper decision
making an investment in apartments can be
lucrative.
There are five areas of costs related to new
apartment
design
development:
and
planning;
site
acquisition;
permitting
fees;
construction; and financing.
Developing a new apartment begins with
identifying and acquiring the right property.
Each neighborhood has variations to the
allowances for maximum dwelling units and
square footage. Finding a property whose
zoning fits the number of intended apartment
units is easily done with the help of an architect
or real estate agent. Higher density zones
require less land to accommodate a greater
number of units, but may also be more
expensive. A common misstep at this juncture
is to identify a site whose zoning will not
accommodate the project goals. An example of
this is the attempt to develop a 12-unit project
on a site that allows only 6-units. The City
would require discretionary permit review which
is time-consuming, administratively expensive
and have equal chances for success or failure.