Why You Should Invest in Phoenix-Area Real Estate Now
Real estate investing is difficult, complicated, and risky, at least that’s what I regularly hear when I bring it up in conversation. The truth is that like any investment, it seems hard to understand until you do a little research. So consider this your first step (or maybe your second or third, if you’ve looked into real estate investing before).
First, you need to answer this question: Why should you invest in Phoenix-area real estate? I’m going to begin with some anecdotal evidence to whet your appetite. On July 14th, we placed a small three-bedroom, two bath home on the rental market for $1,150 a month. Within 48-hours, we received three dozen phone calls, emails, and website requests for information, along with three applications for the property. Because the applications weren’t particularly strong, we kept the property on the market, generating an additional 56 inquiries about the property, from which we received an acceptable applicant to whom we leased the property. From start to finish, it only took eight days.
What should be interesting to you is that within a couple of days of placing the home on the market, we received nearly one hundred different people expressing interest in paying $1,150 to lease a 1,310-square foot home in East Mesa. That is a lot of interest, particularly compared to previous years in which the same property may have garnered a dozen or two inquiries within the same time frame.
There are several factors that are driving the demand for rental properties, most of which center around the local economy. The Valley of the Sun has been one of the leading centers for job growth within the U.S., particularly in the finance, retail, and healthcare sectors. Ingo Winzer writing for Forbes magazine stated, “The strongest economic growth, and therefore strongest demand for housing, is in Phoenix, where jobs are being added at twice the national rate.” With 40% of households renting instead of buying, this provides a fantastic opportunity for individuals to invest in real estate. Certainly, demand is outpacing supply now and for the foreseeable future.
So why should you consider investing in Phoenix-area real estate? There is a high demand for rental properties in the Valley of the Sun creating a fantastic opportunity for homeowners to collect a passive income. Let’s talk about passive income next time.
Need more information about real estate investing? I’m happy to talk about it with you!
Alex Casteel, MBA