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Show The National Enterprise, May 4, 1977 here mated between 10 and 14 percent of buyers were investors, rather than occupiers. Steve Featherstone, executive vice president of the Greater Salt Lake Homebuilders Association, estimates that much of the 30 jump in duplex construction is in response to pressure from speculators. He also attributes the same motives to about 5 of condominium buyers. Such investors will most likely hold a three to five before resale, condominium years Feathersone says, but with heavy market activity such as the last two years, Ive seen people unload their condos at a profit after only a year. Speculation is also becoming common where land and building lots are concerned. Chuck Akerlow, a broker with Ivory and Company, can foresee the days when the mountains surrounding the Salt Lake Valley seem especially confining, and building lots will bring an astounding price. He attributes much of todays big increase in valley housing prices to speculation which occurred five or ten years ago. Land speculation is easier Prudentials Calvert says land speculation is more prevalent than housing speculation beit takes cause it is easier less money to invest in a building lot, and does not involve an ongoing management responsibility like that of a house. On the other hand, says Akerlow, speculating in land usually means holding onto it for at least five years, which adds to the risk involved. The same balanced housing market that is discouraging housing speculation among buyers is promoting it among builders. Bob Palmquist of the Utah Homebuilders Association says homebuilders have enough confidence in the market they will often begin construction on a subdivision without having sold any homes. Page nineteen Its not hard to play Probe Realty plans $1 .2 million investment Even at age 26, schoolteacher Dale Evans is probably as It average a Utah housing speculator as can be found. doesnt take that much money, he says. All that's necessary is some thought and backbone. Probe Realty and Construction is developing two office buildings in southeast Salt Lake to the tune of $1.2 million. Two years ago, teaching at a junior high school in Salt Lake City, Evans began his modest real estate empire when he bought a house east of Liberty Park as his own residence. He claims he owes the whole deal to a skilled and helpful realtor, who arranged additional financing so he could buy a 5.25 percent contract. The ink was barely dry on the closing papers before Evans realized that housing is a gold mine. He house door the for it was next when sale, snapped up put up it at 2 FHA with $900 a down through Located at 2715 E. 33rd So., one building will probably house small businesses, according to Paul Gardner, owner of Probe. Planning a 12,650 square-footwo-stor- 7-1- t, y, concrete structure, Gardner said he expects to rent space for $4.50 a foot. ed pre-stress- payment. He invested $400 and many hours of his own labor on the two houses, living in one and renting the other. He made double payments on the additional financing for the first house, and quickly retired that loan. Estimating the building will cost $450,000 to complete, Gardner said Probe is contracting the construction. Financed by First Security Bank, it was designed by About a year ago, the blitz in housing prices was firmly established along the Wasatch Front, but not quite so well developed in Logan. Thats where Evans got his next teaching job, and (you guessed it)he now has two homes in Logan on his shopping list. He figures to have them under his belt about the time Cache Valley housing prices really get rolling. Hes financing the new acquisitions through FHA at low down payments. The last think they said to me at FHA, he recalls, was, Hurry on back, now. Bruce Van Dyke. OarHner said Probe expects to Bring Higher Rent The other building, located at is a 580 E. 3900 South medical office building near St. Mark's Hospital. Gardner said the 14,000 square-foo- t structure could house between eight and ten doctors, and he expects to charge about $5.50 a foot. Construction of the $750,000 building began one month ago, and is expected to be complete by the end of July. Financed by First Security Bank, it, too, is being contracted by Probe, and was designed by Van Dyke. STEEL RULE DIE, Meanwhile, his Salt Lake City properties are taking care of themselves. Rents cover mortgage payments, taxes, property and mortgage insurance, with a little left over for improvements. Evans plans to keep tabs on the Salt Lake housing market, and sell the houses when he feels they've appreciated in value as much as can be expected. He estimates on he's ahead $10,000 conservatively that paper right now, and when he eventually does sell, hes going to immediately the money. . .in housing. re-inve- begin construction this week and complete work by Aug. 1. INC 209 West Utopia Avenue Salt Lake City, Utah 84115 (801) 486-502- 7 Manufacturers of steel rule & clicker cutting dies Custom die Cutting, Creasing, and Perforations st Evans does not consider in himself an idle dabbler the housing market. Hes giving himself four more years, until age 30, to collect whatever resources he can, head for the nearest ocean, and make sail for the South Pacific. . .where, if the past is any indication, he will probably assume a loan on a little island somewhere. All of this has a point, of course j Capital City bank opens Ribbons flew last week as the states newest financial insti- anent building on May 1. - Capital City State Bank, opened for business in temporary quarters at 2200 South State. tution, Bank president Norton Parker, says the state Department of Financial Institutions just , - - ; V Jt- 'x r if?? fcf!'Y EMPLOYMENT AGENCY THE GREAT authorized the bank to begin business. Construction will begin on a $350,000 perm Promises, Promises An employment service should advance your interest. Advance Careers guarantees it. RESUME ON THE PERSON YOU NEED YOU WONT SEE MOST OF THE APPLICANTS WE INTERVIEW Testing Facilities CALL US, WELL DO THE WORK. WE HAVE A PRE-SCREE- N Pre-screeni- ng WE CARE Advance Careers, Inc. 1399 South 700 East, Suite 4 Salt Lake City, Utah 84105 Telephone: ! Advance 486-575- 3 Building Better Business with Better People |