Real Estate investments in Utah

[Vinoth Amar]

Hi, 

  I live in California, I recently visited Salt lake city, UT and was amazed to see how SLC has so much of housing & infra development going on. Is this a bubble or economy is growing in Utah?

I'm looking for SFH/Townhouse investments for both rental and future appreciation.

a. Would like to know if people would generally prefer renting SFH or Town house

b. Potential for good property appreciation & rentals in  locations (closer to Lehi,UT seems like silicon valley of Utah ?? ) : like areas around Bluffdale, Riverton seems desirable to families. 

c. Is it good to buy a townhouse in Lehi and expect a good rate of return as well as good rental compared to other areas ? Please suggest. 

Also Please suggest good Property managers who are good to work with. Also how much would be a typical % fee for PMs. 

Thx, Vinoth

[Steve Theobald]

Hi @Vinoth Amar

I grew up on the east side of San Jose (by Milpitas) but after meandering all over the USA, I have landed in Salt Lake.  I'd love to help you invest here.  (I do miss home!)

I think the next table answers your first question.  This is NO BUBBLE in Salt Lake.  We are #1 in the entire nation for job growth.

As you might have guessed, with stellar growth, the margins for investment properties are shrinking.  The rents are not going up as fast as the property is appreciating.  

Nevertheless, good deals are all around, especially if you find them yourself OFF market.  But as a Realtor, I love to find that needle in the haystack for my clients.  And I never hesitate to speak up if I would not want a deal myself.  Whoever you decide to use to help you in your quest must be a straight shooter.  There is too much at stake.

a. The debate between SFR and TH is ongoing. Both sides have valid points, and both work as investments. I work for Keyrenter Salt Lake Realty & Property Management, and most of our clients have SFR's. Some love the exterior maintenance the HOA provides for TH's, but of course, this is balanced out by the HOA fees. And those who live in SFR's seem to stay longer than those who are sharing walls or ceilings with other humans who party, fight, or stomp around in the middle of the night - just because! There are lots of things to consider for sure.

b, c.  ALL areas are going gangbusters right now.  Areas with affordable housing have almost doubled since the bottom in July of 2012.  The areas you mentioned are great, but it is important to remember that you are balancing RENTS with the purchase price and mortgage.  I can send you a list of what I think are some of the best rentals out there.

There are lots of great PM's out there, but I am partial to Keyrenter Salt Lake.  They not only do a great job, but I joined them partially because they are the owners of the national Keyrenter franchise and have close to 25 offices now.  This means they are constantly seeking to improve systems.  I like that.  The fee scales for most PMs, and KeyRenter is very competitive, between 8 and 10%.

Please message me privately to continue the conversation.

Steve Theobald