Ready to buy an investment property in Phoenix? Now is a great time to cash in on the best deals out there. In this post, we offer 5 reasons why right now is the time to buy an investment property in Phoenix!
If you’re considering buying an investment property in Phoenix, now is the perfect time to take advantage of the exceptional deals available. In this article, we present five compelling reasons why investing in Phoenix real estate right now is a smart move. Read on to discover why this market holds immense potential and gain valuable tips to kickstart your investment journey.
- Low-Interest Rates
A great way that many people get started in real estate investment in Phoenix, is to use an FHA loan to buy a multi-family property. Using an FHA loan, you will be able to buy a property of one to four units. You will have to live in it yourself for a little while, but you will be able to collect a great income while you do. In theory, your tenants will be paying for your living costs, while you build wealth and equity. Plus, you will get a first-hand look at what it is like to really live there, giving you great insight and the ability to make improvements that will increase the value of the property.
- High Demand for Rentals
Renting has become increasingly prevalent across the country, with more individuals opting for this housing arrangement. Some face challenges obtaining financing, while others prefer avoiding the responsibilities of homeownership. Today’s younger generation often adopts a more nomadic lifestyle, prioritizing travel and exploration before committing to permanent roots. Although thorough neighborhood research is essential, the rising popularity of rentals ensures you’ll encounter no difficulty attracting quality tenants to your investment property.
- Strong Economic Performance
A robust economy translates to more employment opportunities, resulting in a greater number of people capable of affording rental payments. It’s crucial to select a rental property in a location where plentiful job prospects exist. Your tenants need jobs to fulfill their rental obligations, so prioritize easy commuting to and from work. If the property is situated in a suburban area, ensure convenient access to main roads and commercial hubs.
- Stability Amid Stock Market Volatility
While some investors gravitate toward the stock market, relying solely on it carries inherent risks. The market’s volatility means you can experience significant gains one day and devastating losses the next. While allocating a portion of your funds to reputable companies is prudent, diversifying your investments by venturing into real estate is a wise move. People will always require shelter, and investing in housing provides a stable monthly income that remains unaffected by market fluctuations.
- Delaying Costs You
Experienced real estate investors often express regret about not starting sooner. The process of purchasing investment real estate may seem daunting, but once you conduct thorough research, there should be no obstacles hindering your decision. Commencing your investment career early enables you to accumulate substantial wealth before retirement, positioning you for financial success.
How To Start?
Research
The first step to real estate investment is to do your research. Study the market, the economy, and the local demographics. Get a good idea of what you are looking for and what you want to pay. Are you looking for a single-family house in Phoenix or something with several units?
Know The Numbers
There are a number of ways to know if you are getting a great deal on an investment property in Phoenix. You’ll want to learn about Cap Rate, GRM, and the numerous tools investors use to value properties such as a CRM and the 1% rule. When buying investment real estate, it ultimately comes down to the numbers above all else.
Work With A Pro
Working with a professional home buyer and seller in Phoenix is a great option for new investors as well as seasoned pros. At Reivesti, we are able to offer some of the best investment property available, all at a price investors will love. No matter what you are looking for or when you wish to buy, our team will handle the legwork so you can purchase your new Phoenix investment property quickly, without any hassles or delays!