Equity & Appreciation 2021

2021 Was a very good year for real estate owners. We are currently in uncharted territory – a non-bubble boom. This is so different than 2005/6 when speculation was driving the market. 2022 will see the continuation with a slowing of the growth rates – but not by much. (IF we could build homes faster – we would and the curve would be less)

During our participation at the 26th annual “What’s Up Down South” economic summit Vardell Curtis, recently retired Director of the Washington County Board of Realtors, presented a tremendous amount of data that we want to share.

This is a key nugget of value I wanted to pull out and share with our tribe. Equity gains and appreciation rates. These figures are base numbers we as investors gauge the general health of our market. We’re able to calculate this specific to our own properties we own easy enough but as we look at investing we want to understand the general market. This is the pulse.

US Equity Gains by State

Every state, +/- 3, experienced significant equity gains. The western states did very well – Utah in particular is experiencing banner gains – as did CA, AZ, ID and WA. The average equity gain for Utahn’s in 2021 came in at $91k. For investors, this valuation gain certainly bodes well for our investment portfolios where we’re use to seeing appreciation rates from 4-7 % as normal.

Appreciation rates in Utah came in at 28.3% (Number 2 behind Idaho). Good news for investors. But here is the question(s) to consider. WHAT DO I DO WITH MY EQUITY? If we sell, can we replace the investment with a better cash-flow producer? Most likely not. If we sell, and can’t find a property and close in 90 days for a 1031 exchange then we may have ugly tax issues to address. We are suggesting to pull equity as either a cash-out refinance (especially since rates are relatively low) or a home equity line of credit (HELOC). Once you have access to your equity – shop and hunt for the good ones. Right now investors are seeking ROI’s (CAP rates anywhere from 4-8%) They still exist. Our team searches for these levels of opportunities daily. You may need to be prepared to do some TLC work or have vision but they do exist. (Sign up for our weekly investor review alerts to get these opportunities emailed to you)

How to Save $$$ when booking a vacation rental

Vacation rental booking sites such as Airbnb, Booking . com or VRBO (also known as ‘Channels’ ) are all great sites to help travelers ‘connect’ with individuals or businesses (like Escape Properties or “hosts”) who offer amazing properties outside the box of a hotel.  We offer private homes with full-sized kitchens, private pools or other amenities that a hotel can’t offer and for way less than a hotel per room!  (Value -this is why people like you and I shop on these sites when we go on vacation!)

What if you new a secret that could save you 3-15% the next time you booked – would you want to know about it?

Channel companies like AirBnb and VRBO charge both you (the buyer) and I (the seller) each a fee to interact and transact.  This fee can range from 3-15% or more.  So who really pays for this added cost?  In every case, you the buyer, pay your portion PLUS in most cases, you pay the owner portion too through an inflated nightly rate.  

So . . . even though these channel sites are very convenient and they do ad value and help bridge transactions between the parties . . . but . . . IF you could save between 3-15% would you try this one thing?

Here’s the best way to save – book direct.  It’s that easy.   As a seller of vacation homes our best rates are on and through our own sites.  It is when we market through a channel we have to mark up our rate to cover the real hard cost of using a third party to help transact.  Simple economics.

What if there was an additional way you could save . . . would you want to know about that too?  

Many hosting companies like Escape Properties offer our returning guests a discount or incentive to re-book.  We do this because it is less expensive for us to service a prior guest than it is for us to go out and find new ones.  As such, because of the value of this relationship, we are happy to discount a little off the rate for you.  

Escape Properties offers two types of discounts.  One for just returning to ‘any’ property we manage within the next year.  This discount ranges from 3-7%.  The other discount is slightly larger and is unique to the last property you just stayed at.  IF you re-book a stay to the same unit you just stayed in you get a bigger discount. These discounts range from 7-10% depending on the property.

IF you only plan on visiting an area once every 3-5 years, using global sites like Airbnb or VRBO are perfect to use and make travel fun, easy and exciting.  But if you visit an area like St George 2-3 times a year, developing a relationship with the local guy, also saves money and makes travel even more fun, easy and exciting.

Safe travels and return often.

BONUS:  What if I don’t have a code, or I am not a returning customer yet?  Here’s 5% on us

Visit us by CLICKING here and use coupon code NEXT5.