I’ve been investing in Salt Lake City real estate for over twenty years. There have been ups and downs when it comes to learning to invest in real estate like a pro, but what I can tell you is that every investment I have made has provided double to triple the return. At this point, I could write a novel about all the nuances of making a wise purchasing decision when starting your real estate investing portfolio. But for the sake of brevity, let’s start with how to choose the right location.
While there are plenty of trendy neighborhoods in Salt Lake City, when it comes to investing, the wisest thing to do is to take the advice of one of our favorite real estate investors, Sinead Urwin and “Only purchase investment properties you’d be willing to live in yourself.”
So grab a cup of your favorite brew while we discuss our three top neighborhoods to invest in Salt Lake City.
Sugar House:
Sugar House is known for its vibrant atmosphere, trendy shopping districts, and proximity to Sugar House Park. The area has seen consistent growth, making it attractive for investors. It appeals to a diverse demographic, including young professionals and families, enhancing its long-term investment potential.
Here are a few top reasons we recommend investing in Sugar House:
1. Vibrant Community and Lifestyle
From the darling Sprague Library, to Barnes and Noble, to Wasatch Brew Pub, to Blick Art Supplies, Sugar House Coffee and The Dodo Restaurant, Sugar House is known for its lively and engaging neighborhood ambiance, with walkable space to trendy shopping districts, and a variety of dining options.
2. Rental Appeal
The area's appeal to a diverse demographic, including young professionals and families, can make rental properties in Sugar House highly sought after. Proximity to entertainment, dining, and cultural attractions can attract tenants seeking an active lifestyle.
3. Proximity to Universities and Employers
Sugar House is located just ten minutes from the University of Utah, making it a popular choice for students and faculty. Properties close to educational institutions often experience consistent rental demand. Additionally, Sugar House's proximity to downtown Salt Lake City and other high yield employers enhances its attractiveness for renters working in the city.
4. Historic Charm and Architecture:
Sugar House features a mix of historic and contemporary architecture, contributing to its unique charm. Well-preserved historic neighborhoods often attract renters looking for character and a sense of community. Investing in properties with distinctive features can make them stand out in the rental market.
5. Steady Property Value Appreciation:
Sugar House has seen steady growth and development over the years with multiple roadway construction projects aimed to increase foot traffic and better support public transportation. The area's consistent appreciation in property values suggests long-term investment potential. Chances are, you can expect property value growth over time, enhancing the overall return on your investment.
6. Outdoor Recreation and Green Spaces:
The neighborhood is home to Sugar House Park, a large urban park offering recreational activities, events, and open green spaces. Access to outdoor amenities is a significant draw for tenants, especially those who value an active lifestyle. Properties near parks and recreational areas may command higher rental prices and attract a broader tenant pool.
The Avenues:
Nestled at the foothills of the Wasatch Mountains, The Avenues offer historic charm with tree-lined streets and a mix of architectural styles. The Avenues are often sought after for their unique character and close proximity to downtown Salt Lake City. Properties in well-preserved historic neighborhoods can hold or increase in value over time.
The Avenues in Salt Lake City has been considered an attractive area for various reasons, making it potentially advantageous for rental property investment.
Here are five reasons why The Avenues might be a good place to invest in rentals:
1. Historic Charm and Architectural Appeal:
The Avenues is known for its historic charm, with tree-lined streets and a mix of architectural styles. The unique character of the area can attract tenants seeking a charming, well-preserved neighborhood. Investing in properties with historical significance or unique architectural features may appeal to renters.
2. Scenic Views and Natural Beauty:
Nestled at the foothills of the Wasatch Mountains, The Avenues offers stunning views of the Salt Lake Valley and easy access to numerous mountain biking and hiking trails. Properties with scenic views and access to natural beauty often have a higher perceived value. Renters looking for a picturesque setting may find The Avenues particularly appealing.
3. Proximity to Downtown Salt Lake City:
The Avenues is situated close to downtown Salt Lake City, providing convenient access to the city's cultural and economic hub. Proximity to employment centers and cultural amenities in downtown areas tends to attract a diverse range of renters, making properties in The Avenues potentially desirable for tenants.
4. Community Atmosphere and Events:
The Avenues is in easy proximity to various events such as the Twilight Concert Series, Craft Lake City, and the Avenues Street Fair, fostering a sense of community. A strong sense of community and local events can contribute to tenant satisfaction and retention. Investing in a neighborhood known for community engagement may lead to long-term, stable rental relationships.
5. Stability and Property Value Growth:
The Avenues has maintained historical stability and value over the years with the median home value currently standing at $799,000. Areas with historical stability often indicate a favorable climate for property value growth. Investing in The Avenues may offer long-term appreciation potential, providing a solid foundation for a rental property portfolio.
Millcreek:
Millcreek offers a quiet residential feel with easy access to commercial areas. The neighborhood's central location, good schools, and parks make it popular among families. Investing in properties that cater to family needs, such as larger homes or those close to schools, could be advantageous.
Millcreek in Salt Lake City has been considered a desirable area for various reasons, making it potentially advantageous for rental property investment. Here are five reasons why Millcreek might be a good place to invest in rentals:
1. Residential Appeal and Family-Friendly Atmosphere:
Millcreek offers a suburban atmosphere with a mix of residential and commercial areas. The neighborhood's residential appeal, combined with its low-key atmosphere, can attract tenants seeking a quieter, community-oriented environment. Investing in properties that cater to larger households or those close to schools, may be advantageous.
2. Central Location and Accessibility:
Millcreek is centrally located, providing easy access to various parts of the Salt Lake Valley. Tenants often value convenience and accessibility. Properties with proximity to major roads, public transportation, and amenities may be particularly appealing to a wide range of renters.
3. Quality Schools and Educational Facilities:
Millcreek is home to reputable schools and educational facilities. Proximity to quality schools is a key factor for families when choosing a place to live. Investing in rental properties near good schools can attract a steady demand from tenants with school-age children.
4. Parks and Recreational Opportunities:
Millcreek offers parks and recreational areas, providing opportunities for outdoor activities. Access to green spaces and recreational facilities is often a draw for tenants, especially those who enjoy an active lifestyle. Properties near parks may command higher rental prices and attract a broader tenant pool.
5. Diverse Housing Options and Development Potential:
Millcreek provides a mix of housing options, including single-family homes, townhouses, and apartments. The diversity of housing options allows investors to explore different segments of the rental market. Additionally, ongoing development or improvement initiatives in the area may present investment opportunities for those looking to capitalize on potential growth.
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Please Note: Before making any investment decisions, it's crucial to conduct thorough market research, consider current market conditions, and potentially consult with local real estate experts who have up-to-date knowledge of the Salt Lake City market. We do not provide investment, financial, tax, or related service advice. Always work with a licensed professional before making any investment decisions. All investments come with associated risks.
Pictured: Monique Higginson and Jenni Holmstead enjoying the Holladay SOHO Food Market in Holladay.
