Planning to purchase a cabin in Park City, Utah? Whether you’re a first-time buyer or a veteran in the property investment market, it’s wise to study the ins and outs of buying a cabin, especially in a mountain resort town like Park City.
Before you begin your journey into the Park City housing market with an expert real estate team, here are several tips you need to keep in mind.
Read about the local real estate market
Park City is best known for world-class skiing, hiking, and dining experiences. It only makes sense to buy a property located near any of these activities ig you’re planning to turn it into a vacation home or rental.
If you like snow sports or are planning to appeal to that target demographic of potential renters, then purchasing a cabin in Deer Valley Resort or Park City Resort is ideal, especially given these areas’ ski-in/ski-out location.
You should also check out properties in or near Old Town, a neighborhood that offers snow-related activities while also being a short walk away from Historic Main Street. This walkable distance to all the restaurants, shops, and entertainment on Main Street gives Old Town rentals a great property value and high rental occupancy rates.
Do analyze a property’s investment potential
Having in-depth information about Park City’s real estate market is critical in making wise investment decisions. There’s no denying the fact that Park City is a must-visit destination for tourists and snow-sports lovers around the world. And according to AirDNA, the occupancy rate for Park City is at 56%, with an average daily rate of $452 (as of April 2022).
Owning a conveniently located and well-maintained cabin in Park City will not only add diversity to your investment portfolio; it will also have great potential to generate immediate cash flow.
Don’t forget to study rental laws and HOA regulations
Whether you purchase a Park City cabin as a vacation home or a vacation rental, it’s wise to familiarize yourself with any rental laws and homeowner association (HOA) regulations.
If you’re planning to invest in a cabin rental, take note that Park City requires all vacation rentals to acquire a business license before operating. Similarly, depending on your cabin’s location, it may fall under a HOA. They may have certain rules and regulations regarding rental properties in the neighborhood.
Don’t go over budget
Purchasing any kind of property is a big financial investment. It’s crucial to consult with your real estate agent or a financing professional when it comes to planning out your budget and finances.
For starters, assess the following when drafting your budget:
- Your credit score and the amount of down payment you can afford
- Amount of funding reserved for potential or emergency repairs
- The cost of regular maintenance
- Property taxes and state sales tax
- Mortgage plans, home appraisals, HOA fees, utilities, and other expenses associated with purchasing homes and property ownership
- Rent prices of comparable rental properties and the cost of hiring property management companies, if you are planning to manage the cabin as a vacation rental
With our performance-driven and client-focused services, let Team Schlopy do the heavy lifting for you. Call us today at (435) 640-5660 or send us an email at firstname.lastname@example.org.