Why Invest in Northern Utah Real Estate?
First of all, Why Real Estate?
It’s been said that 90% of millionaires become so through owning real estate. Just earlier this year, Business News Daily published their findings on How Millionaires Became Rich, showing that “88% of all millionaires are self-made, meaning they did not inherit their wealth.” Interestingly, according to an analysis performed by Forbes, 215 of the world’s billionaires made their fortunes in real estate!
There are many reasons real estate can be an excellent investment – it tends to appreciate over time, provides cash flow and tax benefits, but perhaps the most exciting is that working with a property manager makes these rewards a truly passive second source of income.
Appreciation
Virtually everyone knows how important ‘location, location, location’ is in real estate. Properties in favorable and growing areas appreciate more quickly than others. Having a great property management company in the high-demand area enables investors to benefit with more flexibility because they are not limited to their personal geographic location.
Positive Cash Flow
Positive cash flow is having money left over after paying the mortgage, property taxes, insurance, and other expenses. Those funds can be used to invest in additional properties. Recently, we’ve found that many property owners and investors who manage their own properties are significantly under-charging rent. A professional property manager has the resources to determine the market rent rate and can help maximize your return and likely creating positive cash flow.
Sweat Equity
Home improvements, renovations, and regular maintenance typically provide a return as well, increasing the rate of appreciation and positive cash flow, however not all improvements are created equally. An experienced property manager will be able to help you identify which updates would provide a return on your investment.
Ok, So Why Northern Utah?
According to information published by The University of Utah, nearly one third (30.3%) of the population in state of Utah are currently renting. The vast majority of that population is located along the four Wasatch Front counties (Salt Lake, Utah, Davis, and Weber) where rent rates have increased more in two years (2020-2022) then the previous 10 years (2010-2020). With rent prices being at an all-time high, the Davis and Weber County area is an attractive option for those wanting to enjoy all the benefits of investing in real estate.
‘Location, location, location” is the mantra of every real estate mogul and Northern Utah suits this criteria perfectly. Historically known as the “Crossroads of the West”, the city is a hotspot for trade, transportation, government, utilities, as well as technology, and professional business services.
Due to the dry desert climate, combined with abundant winter snowfall along the Wasatch and Oquirrh Mountain Ranges, northern Utah is home to “the best snow on earth.” It’s on the license plate so it must be true.
Winter sports are just one of the many draws of the area. With stunning national parks, and year-round outdoor activities, welcoming communities, vibrant culture, and delicious cuisine, Utah provides the complete tourist destination.
Compared to other states, Utah places a relatively low tax burden on property investors. Both businesses and individuals enjoy attractive tax incentives for both rehabilitation and new construction projects. There’s also no estate tax or inheritance tax if you wish to pass your investments down to your heirs.
Making the most of Salt Lake City Real Estate
Wherever you live, you can benefit from investing in Davis and Weber County real estate. At RPM, our property management services offer everything you need to earn great returns on your investment portfolio.
We handle marketing, tenant screening, leasing, and rent collection, making it truly passive income experience.
Contact us today to learn more.
We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.
