With the amount of coverage Arizona has been getting in the national news, we thought people would have realized the incredible investment opportunity flashing across the screen. CNN Money ranked Phoenix as one of the ten best cities in which to buy a rental property. Speaking to Arizona homeowners and out-of-state investors, we have been on the brink of the Phoenix real estate growth in the past few years and recommend that you invest in Arizona real estate sooner rather than later.
Simply picking up one or two family homes, fixing them up, and letting our property management team do the rest could spell out thousands of dollars worth of profit over the upcoming years! Here are three reasons why you should act fast to invest in Arizona real estate and call CENTURY 21 Northwest Property Management!
1. Fourth Fastest Growing
The past ten years has seen a 33% growth rate in the Phoenix metropolitan population, a 1.28 million people addition, which makes Phoenix the fourth fastest growing city in the US. From students to large families, people are always renting homes, and that will only increase as the city expands. There are predictions that there will be an additional 2 million people moving to the city in the next ten years. This kind of population increase means more home demand and higher profit margins for the rental homeowner. We know each area of Maricopa Country extremely well and can advise you where to search for properties so that your investment is easy and almost risk-free! As the market grows, Arizona real estate will be much more expensive- too late to get in with the investors.
2. Shortage of Investors
Before the market crashed in 2008, homes in Phoenix were popping up everywhere. The boom in Phoenix real estate caused housing prices to rise exponentially, which is why the fall hit the Phoenix metropolitan area so hard. While prices are now on the rise again, there is still a huge market for rental homes! Over the past few years, rent prices in most Phoenix rental homes have increased by thousands of dollars a year. Due to past foreclosures and lack of jobs, there is still a huge market for rental homes. In the past two years, city projects and job creation has brought metro Phoenix back to life, just in time for real estate investors to make a profit (up to 2% higher than the national average on return of investment)!
3. Wall Street is doing it…
Since 2009, hedge funds and real-estate investment firms (i.e. Blackstone Real Estate and Colony Capital) from Wall Street to Los Angeles have snatched up foreclosed and inexpensive homes, now owning over 20% of the single-family homes in the Phoenix metro area. The high demand for rental homes causes investors to make a 5-10% annual return by leasing houses to tenants throughout Phoenix. In West Valley neighborhoods, almost 35% of homes are rentals and about 25% or more of those are owned by outside investors. There is a huge market for those with some extra money to spend. Our listings are no exception! Take a look at the property management page on the CENTURY 21 Northwest site to read about how simple our team’s management system is.
We recommend hopping on board the growing trend of owning real estate in various states. Even if you don’t reside near the property, the CENTURY 21 Northwest team takes care of everything from buying the home to finding tenants year after year, while you see the revenue.
