Salt Lake Investment Properties &
Utah Home Investments
Our agents intimate knowledge of Utah's local market and constantly-shifting conditions will make all the difference as you search for your perfect Utah investment property. Servicing Salt Lake City, Provo, Orem, Draper, Park City and Utah County.
Here are a few more things to think about:
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Sit back and relax. Purchasing a investment property can be stressful, challenging work. Whether you just have questions or you want us to actively guide you through the process, a trustworthy, qualified real estate team can help relieve many of the STRESSES you might otherwise feel on your own.
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Sleep easy at night. The extensive documentation and disclosures that are typically required with a investment property sales and purchasing introduce numerous potential liabilities and opportunity costs. Working with a qualified real estate team mitigates many of the risks involved in real property transactions.
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Live the life you have imagined. Real estate sales and purchases represent the largest financial transactions most people ever make and, as such, are the single greatest wealth creators in the world. An effective real estate team becomes a lifelong partner for these crucial transactions, helping you to maximize your wealth, achieve your dreams and live the life you have imagined.
Top Article
Three reasons why real estate is the best
investment you'll ever make.
Three reasons why real estate is the best investment you'll ever make.: (1) leverage, (2) renters and (3) taxes. There is an infinitude of wealth management doctrine on how to invest your money to make it rich. Most investment advisers will tell you all about stocks and bonds, annuities, mutual funds, asset allocation models, etc. Wonderful. There certainly is a place for all that in a diversified portfolio. However, let's do a quick comparison to illustrate why buying a primary home (and heaven forbid rental properties) is the best investment you'll ever make, even (especially) in today's market:
Unless you're Warren Buffet, you're probably going to average about 10% average return, at best, in debt and equity securities over your lifetime. Not bad. Now compare that to real estate, which appreciates at roughly 4% a year on average, barely ahead of inflation. Stick with stocks, you say? Hold on. The average investor doesn't, and shouldn't, trade stocks on margin, so there's no multiplier effect. The average investor, however, can leverage upwards of 95% loan-to-value (LTV) on their primary home. Even at a modest 90% LTV, your multiplier is 10X. At 10% down, that 4% appreciation just became 40%. Your 40% can just as easily become 400% a few years down the road through refinancing. That's the power of leverage working for you.
Finally, renters and tax advantages. Let's say you get crazy and decide to buy an income-producing investment property. Not only is your mortgage interest tax deductible on both your primary home and rental property, thus reducing your tax liability and offsetting most of your rental income, you can also depreciate your rental property over its useful life. Put your investment property in an LLC and you can deduct additional expenses, which further reduces your tax liability. Of course, managing renters indefinitely might not be your cup of tea. So, in a few years, after you've acquired a few properties and can afford to pay someone else, you sell them in a 1031 tax-deferred exchange, thus avoiding capital gains, and roll them into a single apartment complex managed by a property management company. You own an appreciating asset that far out paces other investments and that gives you the ability to further leverage your wealth as needed while providing numerous tax deductions that offset current and future income.
