In our distressed real estate market, the demand for rental properties of all types is increasing dramatically, and has been doing so over the past five years. The high demand is quickly drawing investors from all over in order to take advantage of the great housing deals.
Due to the large amounts of short sales or foreclosures in the Valley, previous homeowners are now unable to qualify for loans. These families are now looking to rent, especially in rental properties similar to their previous house, which boosts the single family and high-end rental housing market. These renters are one of the biggest groups coveted by landlords, and according to a survey by the National Association of Independent Landlords, more that 80% would lease to a tenant who lost their home in foreclosure if they had decent credit.
A growing trend with investors is to purchase homes that are going into foreclosure, and then rent the home back to the former homeowner. This situation allows the investor to not have their property sit vacant, and allows the homeowner to not move, and pay less for rent than their current mortgage.
Another growing group of tenants are younger, mobile workers who aren’t sure how long they will continue to work in the Phoenix area. As well, companies like Ebay, Paypal, and Intel are providing more jobs to the Chandler area, and drawing in more people who will increase the rental property demand as well.
With interest rates incredibly low, investors are getting a better rate of return from their investment properties then they would have if they happened to invest somewhere else.
Contact us today to learn more about great investment properties for you!
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