With increased mortgage rates and house costs on the rise in recent years, starting your home investment journey can feel intimidating—especially if you’re a first-time home buyer. Investing in a home in Utah can feel particularly intimidating because of the competitive housing market. According to the U.S. Census Bureau, Utah is one of the fastest-growing states in the U.S. Logan, Orem, and St. George are in the top 10 fastest-growing cities in the country!
Yet, even with these obstacles, there’s no reason you can’t get your dream house when you’re ready for that next step. If you’re informed about the area you want to live in and ready to go all in, you can make it happen. Let’s talk.
Prospective homeowners see many compelling reasons to buy in Utah.
Utah is known for its booming economy, beautiful landscapes, and friendly people. It’s also a hub for tech-oriented start-up companies, many of which are concentrated between Utah County and Salt Lake County in what has become known as the “Silicon Slopes.” Plus, the communities just outside Salt Lake City experience extremely low crime rates and offer plenty of educational opportunities.
The houses for sale in Utah can range from more established homes and neighborhoods to exciting new communities, accommodating all sorts of families. Overall, Utah is a beautiful, family-friendly place that fits different lifestyles.
It may be tempting to rent in Utah if taking out a mortgage loan feels too daunting; however, it might be worth reconsidering when weighing all pros and cons.
Rental prices in Utah have taken a huge jump in recent years. The average monthly rent has increased 12-15% across the state, and in metropolitan areas like Salt Lake City, it’s gone up almost 25%! So, you’re paying almost the same amount of money, whether you’re renting or buying, yet you’re still saddled with all the limitations that come from renting from a landlord.
If you buy a home, the money you pay each month goes toward owning something. Your home becomes an investment. You also have a far more stable monthly payment instead of being subject to the economy and your unpredictable landlord. Buying also allows you to get involved in the community, something Utah is famous for.
If you’re not a first-time buyer and looking for a second home or investment property, make sure you have your facts straight. Second homes and investment properties may seem similar at first, but a few key differences will distinguish the two.
Second homes are technically houses where you are a legal resident for at least part of the year. To be a legal resident, you must live there for a minimum of 14 days of 10% of the days you rent it for—whichever number is higher. For example, if you rented out a house for 300 days, you would have to reside in it for 30.
You can put a down payment of 5-10% on second homes. The revenue you generate from a second home isn’t taxable, but the expenses are not deductible.
Home investment properties are properties you buy specifically to rent out to generate income. Residing on the property may give you tax benefits, but it’s not required. Investment properties typically require somewhere between 15-25% down payment. All the money you make from renting an investment property will be taxed, but you can write off all your expenses.
Your situation will determine whether a second home or an investment property is right for you.
Of course, the most important thing about buying a house is obvious; it’s the one you’re buying! EDGEhomes is a premium home builder with communities in both Utah and Salt Lake counties. We offer designer floor plans that make buying a home as convenient as possible.
We will build a house for your specific needs. Or, if you don’t want to wait, you can look at the houses for sale in Utah that we’ve already built.
With EDGEhomes, you can lock in your rate and price as you go through the home-buying process, so there are no surprise changes. Let us help you find your dream home in an amazing community. If you’re ready to start, schedule a visit with us today.
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