I’ve been helping people buy and sell their Utah county Investments for over 12 years. Over the years, I’ve noticed different things.
I noticed that through the ups and downs in the market, Utah county investments have always been tied to income. In other words, when rent went up, so did value. For that reason, we didn’t see huge increases when other towns and cities were jumping 20% a year. But, we didn’t take the losses either. I would say that overall growth has been 3-5% a year. In the Utah county investment market, you probably won’t see record appreciation, but you will be able to find good renters. And like any investment, the longer you hold on to it, the better off you’ll be.
I’ve also noticed that duplexes/four-plexes near campus cash flow a little better than condos generally. But most of the multi-units are older homes that haven’t been maintained well, which is something to consider. With the older homes in particular, I always recommend getting an inspection. Whether that is a professional inspection, or one the buyer does personally. An inspector I would recommend is Clark Palfreyman. He’s honest, personable, and knows his stuff, and he’s less expensive than everyone else. He is getting older though, (maybe early 70′s), and does everything oldschool.
I’ve bought and sold many homes in utah county over the years, and I believe if you put some money into your investment, and maintain it well, you’ll get your money out of it, and see good appreciation. I bought a duplex in Provo, and painted it, put tile in the kitchen, pulled the carpet out and sanded the wood floors and sold it 1 year later and made $30,000. Not bad.
Appraisals:
An appraiser will look at three things to determine the value of a property. Investors should be aware of these elements of value. Square feet, location, and condition, in that order.
1) Square footage: Square footage is defined as livable space. Obviously, a home with more livable space is going to be worth more than one with less. A garage is not considered to be livable space.
2) Location: When you’re purchasing a home, it’s important to find a location where the homes are in the same economic condition. Generally, its wise to buy a home in the nicest neighborhood you can afford. A smaller home in a neighborhood with bigger nicer homes will generally see better appreciation.
3) Condition: Obviously, the condition of a property can affect its value a great deal. The age of a home should be considered and may affect its condition. Another thing to think about is that the condition of a home affects the marketability more than anything else when you decide to sell.
Cory Quackenbush