Buying your own apartment in Salt Lake City is an excellent way to take advantage of the current real estate market and prepare for future real estate values. Let’s get an overview of the housing market first and then we’ll see how you can maximize rents for homes.
Salt Lake City, Utah Housing Market Overview
The entire state of Utah is currently benefiting from strong economic growth. This has been the trend in recent years and forecast that it will remain stable throughout 2020. Realtor’s 2020 national housing forecast assumes that the housing market nationwide will slow slightly compared to recent years, with prices rising by an average of 3.9 percent.
According to the forecast, Salt Lake City was placed in the top 25 of the housing markets, with a national ranking of 16. The projected price increase is a whopping 6.7 percent – almost 3 percent above the national average!
2020 property trends and the impact on home rent
While a national appreciation of only 3.9 percent may seem rather small, the consumer price index will only rise by 2.5 percent. This means that home values will rise more than rental prices. This is good news for buyers who want to buy homes on their own basis.
Especially when you consider that it is currently a little cheaper to rent a house in Salt Lake City than to buy it, according to a report by GoBankingRates. Buyers in Utah can use this to their advantage. While you pay an additional rental premium, which is set in the direction of deposit, the ground rent should be less than getting a new mortgage on the same house – especially if you don’t have the full 20% for a down payment.
So how can you make all these predictions work to your advantage when it comes to buying rent for your own properties? Easy. Apply these few tips and you can make the 2020 market forecasts work in your favor:
Make sure the rent is based on current market prices. You don’t want to pay more than the market rent. The rental premium is not included here – this is above the market rent as already mentioned. If your lease is longer than one year, make sure that the rent increases are based on the consumer price index. This should not increase your rent by more than 2.5% per year.
Block a purchase price for the house when you sign the option contract.
If you can agree on a purchase price at the beginning of the agreement, it is when the market appreciates the difference between the purchase price and the market value – and it will .- there is equity in your pocket. But there’s a slight catch here. Lenders typically only write a mortgage based on the written purchase price. Even if you can’t use the equity right away, it’s still there. This equity can be accessed if you are ready to refinance.
If you wait for the lease to end and the option is enabled to set the purchase price, the owner will receive a market assessment instead of you. As the property value rises, your monthly rental premium ends up at a smaller percentage of the purchase price.
In summary, the real estate market in Salt Lake City is strong and stable. It’s a good time to rent, to rent houses in Salt Lake City. If you want to own a house by rent, now is a good time to do so – as long as you can lock a purchase price at the beginning. Check out the latest home rental in Salt Lake City