There are many reasons to invest in a post office today
One of the main advantages of buying a post office is that you are purchasing the property "fee simple", meaning that you own the land and the building, but are also buying the rights as the landlord to take over the lease with the U.S. Postal Service ("USPS") as the tenant.
The USPS has "leasehold rights" and, because they are the ones that have drawn up the leases, they tend to favor the postal service. However, having the USPS as a tenant means the rent is backed by the U.S. government, which provides valuable safety to your investment.
Why Buy a Post Office?
- Safety: The United States federal government guarantees the rental income, providing exceptional security on your investment.
- Availability: Only about 25% of all postal facilities in the U.S. are owned by the United States Postal Service. The remaining 75% are privately owned and leased to the USPS.
- High Returns: Even though the income is guaranteed by the U.S. Government, you could achieve extraordinary returns of 6-30+%. However, all investments are subject to risk of loss.
- Standardization: Almost all leases are on United States Postal Service forms, so once you familiarize yourself with the terms, it is extremely easy to pick and choose which properties fit your investment parameters and needs.
- Diversification: You can purchase small postal units around the country with different features to diversify your investments.
- Flexibility: Purchase prices range from a few thousand dollars to several million dollars, so there are opportunities to fit every investor's budget.
- Tangibility: Own something tangible - a building and land - that will always have some value, rather than a piece of paper.
- Tax Advantages: You do not have to pay capital gains taxes on profits from the sale of real estate, provided that you re-invest those profits into other "like-kind" real estate within a certain period of time.
- Rental Income: Rental income collected from tenants may cover your mortgage costs, insurance, and maintenance upkeep.