I often get asked by clients what is a good investment property in Park City. There are many way to look at this as there are many ways to look at the ROI or your “return on investment”. The first way is after buying a property you can weigh the cost of the property versus the rental revenue. Typical costs:
3 Property management
a. Rental split if using that portion of the management company
b. Maintenance and repairs
c. House keeping
d. Bi-yearly deep clean
4 HOA fees
5 HOA Assessments (These have diminished due to Utah State Law)
6 Owner advertising if doing it without a management company.
The second way is to the same as the first but on a cash sale basis.
The third is also the same with the caveat that part of the return is in the ability to have a beautiful place to stay and enjoy the skiing and snowboarding in the winter and all of the hiking, biking and golf opportunities to spend with your family. I have so many clients that have told me they invested in their time with their family. We don’t realize how quickly that disappears. With the winter sports, they will also find that the kids will continue to find the time to come and play into adulthood.
In Park City, we will see varied rates of returns on these choices. The cash sale will usually cover all costs and put some money in your pocket. The loan may cover the costs but may cost a little bit for ownership.
All of these assumptions can be affected by:
1. Owner usage
2. How good our snow is for the year
3. The economy
All in all, our market is steady growing and there is a good potential for most property to increase in value over your time of ownership to add to the investment. The one thing that you will never lose is the time and memories spent in Park City with family and friends.