Why You Should Invest in Medical Office Properties?
Do you know that you can acquire a medical office building for 1031 Exchange replacement property? Yes, that’s true. As 1031 Exchanges allow investors to defer capital gains taxes on exchanging like-kind properties, exchanging an old property for a medical office building isn’t a problem. But before you get carried away, it’s important that you know how beneficial it would be for you if you get hold of a medical office building using a 1031 Exchange.
Benefits of possessing Medical Office Properties
- Medical office buildings generally have high rents. Therefore, investors are likely to find high-credit tenants.
- Medical office buildings usually have a large structure.
- As the rents of such properties are on the high side, investors can expect greater returns
- Medical office building for 1031 exchange also provide numerous tax benefits.
- Investors can also expect equity appreciation over a period of time.
As you must be aware of the fact that real estate investments are subject to market risks, and every investment poses some risks as well. So is the case with medical office properties.
Drawbacks of Medical Office Properties
- Sometimes, it gets difficult to find a buyer for medical office properties due to high rents.
- Risk of vacancy is generally high.
- Medical office properties have high maintenance costs.
Though there are a few risks associated with medical office properties, however, there is no doubt that such properties generate high revenue. Therefore, if you were eyeing a medical office building, then it’s time that you acquire one.
For consultation and assistance regarding 1031 exchanges, you can call – 888-993-2835 or email us at info@1031Xchange.com