What Kind of Properties Do Well as DST Investments?

11 June 2019
 Categories: Real Estate, Blog

Passively held real estate is one easy way for investors to maintain their wealth over time, and there are even special methods that make this kind of arrangement even more attractive for investors. One of the most common methods for holding real estate property in a passive way is the DST investment. DST stands for Delaware Statutory Trust. The trust is technically tax-free because they are eligible for a 1031 tax deferment. Take a look at some of the properties that are a good fit for these passive real estate holdings. 

Apartment Buildings 

Apartment buildings and multi-unit housing structures are logical properties for DST investment, which means they also work well when replacing a property during DST 1031 exchange. These buildings tend to hold their resale value well over time. It is far more likely that a multi-unit structure will grow in value than a decline in highly populated areas. Stability is a huge attribute to look for in these properties because no investor is going to want the value to drop out in such a way that the property must be immediately sold off and exchanged for something else. 

Commercial Properties

Much like apartment buildings, commercial properties are also fairly stable investments for the long term, and they can really grow in value a lot easier than something like open land or single-family dwellings. Beyond the stability in value, commercial properties tend to offer something else, however: long-term leasees who will stay in the property for a long time. This is especially true for large facilities leased to highly established franchises and other types of pertinent businesses with staying power because of high consumer demand. Whether you are looking for a DST exchange property or an initial investment, these properties are most often a logical fit. 

Healthcare Facilities

This is another logical investment for DSTs for obvious reasons. Healthcare never goes out of style; the need for healthcare doesn't really wane over time. Owning one of these facilities is almost like owning something that you are pretty much guaranteed will always be in high demand. Many DST investors work toward investing in healthcare facilities because the initial investment can be a lot higher than some other commercial or residential complexes, but the wait and work are worth it in the end. Holding a healthcare facility in a DST arrangement is not just stable, it is also something that many other investors will be interested in contributing to. 

To learn more about your options, consider reaching out to services such as Whitehall-Parker Securities, inc.