Monday, February 11, 2013

Utah Ski Property Investment Currently a Great Deal


Utah Ski Country Real Estate Comparative Statistics: Click here for the latest Utah Ski Country Real Estate Comparative Statistics for the past six months, including Number of Units Sold, Median Sales Price, % of Original Listing Price, Median Price Per Square Foot, and Median Days on the Market. This data is organized by ski resort area.


 THE NEWS

Real estate Investors should be flocking to Utah towns in close proximity to the state's ski resorts, as well as to the resorts.  Home and land prices are still indicative of a strong buyer's market, while rental rates are up and the inventory available for rental in some areas is beginning to lag behind demand.

It's still a great time to purchase investment property close to Utah's fabled ski resorts, but the clock is ticking.  Many or the bank-owned and short sale properties have been purchased, but prices are still low.  Seasonal rentals are holding steady at the resorts, but long-term rent/leases are in high demand in the cities along the Wasatch, which are no more than a 45 minute drive from a number of resorts.  It is still considerably harder to qualify for a mortgage than it was previous to the real estate bust and recession, and coupled with the lack of property appreciation/depreciation since 2008 - the idea of renting rather than owning is gaining wide acceptance.  Which, of course, is good news for real estate investors.

But as the inventory of homes is further depleted and the economy continues to improve, prices could move higher quickly.  Very little inventory in terms of spec homes has been added over the past four years.  The Fed has promised to keep interest rates low, but they will eventually start to rise, and as banks ease their mortgage requirements, there could be a sort of gold-rush from those who have been waiting on the sidelines to purchase property.

One of the best current markets for investors is Ogden, Utah.  Ogden was recently voted the #2 ski town in the USA by Powder Magazine.  The historic town of 80,000 is less than a thirty minute drive from Snowbasin, the world-class mountain that hosted the downhills, super-gs and combined skiing events during the 2002 Winter Olympics.  Powder Mountain, with over 5,000 acres of terrain and 500" annual inches of Utah powder, and Wolf Mountain, are less than 45 minutes away.  SLC International airport is a 30 minute drive, a number of the town's neighborhoods are connected to hiking and biking trails into the Wasatch, and the cost of living is low.  Single family homes suitable for rental in a National Historic District in Ogden can be purchased for less than $100,000.

Although many real estate investors took substantial financial hits during the recent market downturn, opportunities for a reversal of that scenario now exist.  Property prices are low and likely headed up, in contrast to inflated prices before the downturn.  Rental rates are up, and if an investor has the resources to buy and maintain a property rather than counting on a quick flip or dramatic appreciation, the short term and long term returns can be significant.  Particularly as compared with the essentially non-existent returns on savings accounts and money markets.

Additional Thoughts

If you are interested in investment real estate in the Ogden/Ogden Valley, Utah area, contact Lisa Karam (801 791-8801; Ogden Valley Real Estate Guide).  She has extensive experience as a local real estate agent and investor.

If you are going to be in the Ogden/Ogden Valley area looking at property in March and are interested in photography, check out this link.