Down economy's upside: City living becomes affordable

By Sarah Dallof

SALT LAKE CITY — Downtown Salt Lake lofts and condos that used to be in high demand when they introduced city living with big city price tags. But falling interest rates and low list prices are offering people the chance to get into dream properties.

Take a look inside one of the Broadway Park Lofts: two bedrooms, one and a half baths baths in nearly 700 square feet. Originally listed for over $261,000, it's now on the auction block starting at $100,000.

A penthouse that was once worth nearly $350,000 now has an opening bid of $140,000.

"Where the pricing ends up, you have to wait until auction day (to find out)," said Susie Keller, project manager of the Broadway Park Lofts.

So, is it a good deal or a ‘too good to be true' deal? Downtown sales veteran Babs De Lay, with Urban Utah Homes and Estates, cautions there are risks with developments like this, specifically when it comes to an unknown home owners association.

"There are a lot of things that haven't happened there because it's not finished, and what will you be absorbing there in a building that's not completely sold out?" De Lay said.

But it could be a killer deal for the right investor. And the dream of downtown ownership isn't just found on the auction block. If you can qualify for a loan, historically low interest rates are waiting.

"Business is crazy right now because of the interest rates. If it stays this way, I don't think I'll have days off for a month," Keller said.

De Lay says people with good credit, an income history and not a lot of debt are the folks qualifying for loans these days.http://www.modernhomebuyers.com/