Are you considering investing in Phoenix real estate?
When it comes to investing, you have a number of options, from bonds to stocks to mutual funds and market funds. But real estate, specifically investing in a rental property, is different type of investment that offers unique opportunities.
Real estate investing, especially in the form of a rental property, is an ideal income stream. Once a tenant has settled in, real estate investors are assured a steady monthly rental income. This source of revenue can be put towards your retirement or it can be used to grow your wealth.
Another significant benefit of real estate investment is the matter of appreciation/ depreciation. Over time, assets tend to lose value due to wear and tear, this, however, is not the case with real estate. The value of real estate tends to go up since it’s a finite resource that is always in demand.
The advantages of real estate investments can only be enjoyed if it’s done right. This type of investment allows you to build wealth, secure income, and plan for retirement, and that all starts by selecting an ideal and healthy real estate market.
Prospective real estate investors should consider owning a Phoenix investment property. With its tourism, growing population, perfect weather, and growing economy, Phoenix properties have the potential of being quite profitable.
Taylor Street Property Management is one of the leading property management service providers in Phoenix, Arizona. With our help, expertise, and customer-driven services, we can help you manage your Pheonix investment property!
If you want a detailed summary of the reasons you should invest your funds in a property in Phoenix, keep reading.
Why You Should Invest in Phoenix, Arizona Rental Properties
Investors are moving into the Phoenix real estate market hoping to enjoy some good returns.
Here are some of the reasons the region has won them over:
Tourism
Some of the landmarks located Phoenix and Arizona include the Grand Canyon, Papago Park, the Petrified Forest, and Hoover Dam. In terms of museums and art galleries, tourists tend to visit the Arizona State Capitol Museum, the Phoenix Children’s Museum, the Heard Museum, and the Phoenix Art Museum. All of these places are equally loved by both tourists and residents.
Millions of domestic and international tourists, and even residents of the state, visit the various landmarks located throughout Arizona on an annual basis. The billions in revenue brought in trickles down to support other sectors of the economy. Trade, real estate, and hospitality sectors are some of the biggest winners of Arizona’s high tourist numbers.
Having an investment property in Phoenix is proving to be even more desirable. The introduction of rental platforms such as Airbnb, booking.com, Expedia, and Tripadvisor has completely changed the game. Property owners can now choose to use their investment properties as short-term vacation rentals or go the traditional route.
There are fun activities for visitors and locals of all ages, making it a great place to own an investment property.
Suburban Development in Phoenix
Residential properties in the city suburbs are a lucrative option for investors. The city has been expanding with young professionals tending to want to live close to work, and some of these young professionals prefer to rent.
Cheaper real estate options are also available in the suburban and metropolitan areas of Phoenix. There are a number of fast-growing suburbs that investors can target where home prices are favourable. Chandler and Mesa to the southeast of Phoenix have experienced a burst in population over the years.
Increasing Demand for Housing
Phoenix has been experiencing steady population growth. People are moving from California and the Midwest to our beautiful city. This is due, in part to the relocation of corporations to Phoenix. Because of the influx of people moving to the area, it’s experiencing a situation where demand for housing is higher than the supply and in turn has also affected the rental market. This makes it an ideal time to buy rental property in Phoenix as an investor.
This results in a couple of scenarios:
- One, property prices in Phoenix will appreciate over time which means rent prices are likely to increase as well. Real estate is a reactive sector. It will take some time for the supply to level up with the demand.
- Two, tenants, being rational, will always look for housing that meets their expectations or needs and rent that suits their financial abilities.
While this might appear daunting, as a prospective investor, all you need is the professional advice of a reputable real estate expert in the area. Taylor Street Property Management offers services that cater to helping you navigate and to tap into the Phoenix housing market.
Growing Economy
The State of Arizona has created a business-friendly environment. Businesses and companies are thriving thanks to favorable regulations, growing economic sectors, and the availability of skilled manpower.
What’s more, a number of companies, both regional and international are moving to the Phoenix area. In the past few years also, the region has seen a number of companies move from California and other cities. Zoom is one such company that is planning on expanding operations in the city and they’re set to have a research and development center in Phoenix by 2022.
This strong economy and growing job market mean more people moving to the area for work, which will result in a larger pool of prospective renters able to pay their rent.
In Conclusion
While real estate promises good returns, you must always consider your resources, budget, and investment goals. Compared to other cities, the median price of Phoenix homes and apartment units is near the US average. The same cannot be said of other areas such as New York and California.
Phoenix is experiencing a significant shift in the real estate sector. The growing economy, relocation of corporations, and increased demand for housing presents the perfect opportunity for investors. Tenants are also able to enjoy the all-around perfect weather, endless activities across the region, and a sense of community.
Whether you are a new or seasoned investor, navigating the Phoenix market can be challenging. Our professional property managers at Taylor Street Property Management are here to help you with your investment. With our expertise, we can ensure that you find the perfect property to add to your portfolio. Contact us today to learn more the services we offer.
