UtahCribs Weblog

Real Estate, Homes, News, Statistics and more

Cap RATES

Posted by UtahCribs, Real Estate, Homes on November 11, 2008

When it comes to economic times like this the bottom line is, How safe is my money where it is and how good is my return.  Many have flooded to the treasury market in order to get safe government binds returning a horrible 2-4%.

Is this the best place for your MONEY if you have some to spare?

I Like to think there are better deals out there.  Brad Miles (on our team) recently did a large market study of large apartment complexes and what the going CAP RATE IS.  Cap rate is the same as the return you can expect on your money after making the mortgage payment, the costs of running an apartment complex and the taxes.  He found the AVERAGE of GOOD LOCATION complexes RIGHT NOW on the SLC market is around 8%!  Can you believe that!  And that does NOT account for APPRECIATION in the complex….that’s just return on your $$$ with current rents and interest rates!

Personally I think it’s safer to OWN LAND and have renters than even investing in GOVERNMENT BACKED BONDS THESE DAYS!  If you have the $$$, now is the time to buy these places in SLC.

His full report and finds are attached HERE: cap-rates

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