Great Buys For Investors in Arizona
Canadians and Mid West Buyers in the States are taking advantage of great buys for investment in Arizona including Scottsdale, Phoenix and the surrounding areas.
Here are the following reasons:
- Prices are discounted on an average 54% from 2006. They are back to 2001 price points. (Some are higher or lower based on Community)
- Taxes are relatively low. Compared to other states our taxes remain one of the lowest in the US
- Home owner Association dues are reasonable. It depend on the community and what the dues include. More amenities mean more dues.
- Rents have remained solid. They are stabilized and commanding higher monthly rents depending on the house and it's features and benefits.
- AZ is still a destination state for a great lifestyle and snow birds continue to come in peak season
- 300 Days of Sunny weather with 74 degrees average year round temperature with low humidity.
- Golf and lots of it!
- There are many more renters as the housing market under $250,000 is basically in short sale or foreclosure. Those people who were forced to sell now have to rent.
- It has tax advantages
Here is an example of a great buy for an investor in Arizona.
Let's talk about a home that one of my buyers is purchasing. The home is a 3 bedroom, 2 bath with a 2 car garage in Glendale, AZ with a sales offer of $65,000. The home needs paint, and a little landscaping , a refrigerator, washer & dryer. A home similar to this property will rent around $1000. Home owner's dues are $125 Quarterly and Taxes are $1414.00 a year. The rent that the future homeowner is expecting is $925 to $950 based on other properties that rented in the area.It will give you a 14% yearly rate of return (and within 7 years your $65,000 is like a credit back in your pocket). Then when you sell it is a profit.
Plan on owning it for 7 years before you cash out!
In order to have a great buy investors in Arizona consider the following:
1. Location. Don't buy anything backing to a busy street or power line.
2. Buy something 1990 to 2005. They will usually have tile roofs and won't need repair
3. Buy a home with 3 bedroom 2 bath. Larger homes may have multiple families living in them.
4. Kitchens must have good cabinets and counter tops. All appliances should match color & brand. Replace if necessary.
5. Flooring should be tile and carpet. It needs to be neutral and in good condition.
6. Back yards must be landscaped. Have an irrigation system put in if necessary with at least a little grass
7. Pools are desirable. They rent faster & get higher rents. They also sell for more money.
8. Vaulted ceilings, open floor plans and new paint or in good condition.
Bank owned properties close in 30 to 60 days. Short Sales can take up to 6 months or more. It is advisable to have a Realtor who is a Certified Specialist in Bank Owned and Short sales. Great Buys are possible in Arizona with seasoned professional Realtors who know and understand today's marketplace!