How Much Do You Need to Invest in Real Estate on Average?

There are several reasons why you should put your money into Salt Lake City real estate, but how much do you need to invest in real estate? We have you covered.

There's no better time to start investing in Salt Lake City real estate than right now. Despite the problems from the past couple of years, people are ready to move out and into their next home or business space.

As such, there are plenty of properties that have become available and many individuals looking to buy. 

In fact, Salt Lake City home sales are projected to grow by over 15% over the course of this year. 

But how much do you need to invest in real estate long-term? And what can affect that cost? 

How Much Do You Need to Invest in Real Estate?

Just last year, the median home price in Salt Lake City was close to $500,000 according to a report from Inspection Support Network. The average number of active listings per month was almost 1,500, with the number of new listings growing by 1,185 per month on average. 

However, you don't need to buy a big property to invest in real estate. REITs allow you to invest anywhere between $1,000 to $25,000 to add real estate to a portfolio.

Next up in price is rental properties, followed by full-on purchases with the intent of flipping them to the next buyer. 

Varying Factors and Considerations

Of course, purchasing the property is only the first step. The best investing strategies take into account the cost of upkeep, as well. 

Residential and commercial properties have different requirements, but they both need regular attention. Otherwise, don't be surprised when you have to clean out mold and pests before you can use them. 

Residential Real Estate

Residential real estate investments are a relatively consistent market, regardless of current events. You can find various types of real estate to purchase in this area, such as apartment buildings, houses, condos, and so on.

How you make money off of them and the initial cost will depend on the type you purchase. An apartment building will require regular upkeep and maintenance. If you're flipping a home, there are additional costs to improve the property's value. 

Commercial Real Estate

Commercial real estate is a solid market because you can rent out to a potentially profitable business.

However, changing demographics have led to changing needs. It's important to purchase properties in booming areas where new businesses want to set up shop. 

If you buy multiple commercial properties, you should also invest in a property management company. They can handle all the daily management responsibilities, including rent collection, repairs, and complaints. 

Costs of Investing in Real Estate

So how much do you need to invest in real estate for the first time? Due to how wide the market is, it's impossible to say for sure. Purchasing a business space in a popular area will cost more than a small home on the other side of town. 

The Susie Martindale Group can help you find your first real estate purchase that matches your budget and needs. Our group of Salt Lake City real estate brokers knows the community and is ready to help. Contact us to learn more about our listings.