…And Why You Should Buy One Too
I am buying a Racquet Club condo. Racquet Club condos were built in the late 1970’s and are located in the Park Meadows neighborhood. They surround the former Racquet Club, now known as the Park City Municipal Athletic & Recreation Center (MARC).
The condo I’m buying is clean and in close to original condition and it will make a great rental property. I’m paying cash, and if it stays rented, I’ll earn about a 4% annual return after taxes & HOA dues. This does not include the tax advantages for depreciation or the potential for appreciation, which I believe is significant.
Here are some photos of the condo.
There are currently no other Racquet Club condominiums on the market, indicating a scarcity. Four have closed in the last 6 months. The least expensive Racquet Club closed at $465,000 and the most expensive closed at $550,000. The one I’m buying was listed at $449,000. This means that if I decide I want to sell the condo, I have the ability to add value through a remodel.
A few years ago, I sold a Racquet Club condo that was nicer than the one I’m buying for $265,000. That was at the bottom of the market. I know that we are not going to see those prices again, unless there is some sort of worldwide catastrophe like we had in 2008. Even in that worst case scenario, my condo will be rented and generate income. I won’t have to sell it in a down market.
I truly believe that Vail Resorts is a game changer in our town as they have started to create an entire economy of employees who will need to rent housing. With this purchase, I will be helping my community by providing a nice place for someone to live.
This condo also affords me with lots of possibilities for the future. My condo could be used by one of my kids after they are grown. Or, I may decide to downsize and live in the condo with my husband.
To sum it up, I’m buying a rental property because I think there is great upside potential for appreciation and a very limited downside. For me, the downside on this rental property is lower than if I kept that money in the stock market. If you wish to discuss the pros and cons of purchasing a Park City rental property, give me a call or shoot me an email. I always enjoy talking real estate with friends and clients.