When one mentions Arizona, what springs to mind is the desert, cacti, snakes, birds and other wildlife. If your knowledge about this state extends beyond just that, it’s probably due to the heat wave of 2011 which torched huge swathes of both Phoenix and Tucson.
Apart from an endless summer however comes growth as well. The state has a thriving real estate market with people flocking in from all across America because of the relatively affordable housing costs compared to say California or New York.
In fact according to a report by RealtyTrac housing prices grew at 6% nationwide but even more so in states like Arizona where homes went up 12%. Add this to job prospects and I don’t think I need to tell you why people are flocking here.
Phoenix real estate is mostly affordable for a town its size with the median house price being at $250,000 (half of homes are cheaper than that). You can find houses as low as 80K in some parts of Phoenix and prices go up from there so it’s easy to get something nice within your budget if you’re willing to do a little looking around. Maybe not the super high end stuff but certainly enough to raise a family in comfort and more than enough to make huge profits if you play your cards right and buy wisely.
One of the better areas for housing is Tempe which has all kinds of options no matter what your budget might be. There are places where you can buy a house, condo or townhouse for less than $100,000. Prices start at about that figure and go up to the hundreds of thousands which will still get you something more than decent in most cases.
This is just an example of one listings so prices may differ but it gives you get the idea what you can get for your money if you’re prepared to turn over some stones!
You might have noticed I haven’t mentioned rent yet. This is because real estate investing in Phoenix has a huge advantage over many other states – foreclosures ! These are homes where people couldn’t pay their mortgages on time and thus were evicted from their houses by banks who then sold them off as repossessed properties. Don’t think of these as cheap deals though because they usually are not. Even repossessed homes in Phoenix sell for hundreds of thousands and the reason being is simple: banks always put a price on their properties so that even if they drop the sale price, they still make a profit. So what does this mean for you? Well, it means you can snap up some bargains but also you must invest wisely or end up losing money on your purchase. You’ve got to remember – there is no such thing as a free lunch here!
Another way to look at the situation is that any home which falls into foreclosure will eventually be purchased again by someone no matter how big or small the amount owed on it might be. What this means is that if you buy a house for say $100,000 and the person before owes only say $20,000 on it – do not expect to live in it debt free. You have to factor the owed money into your budget when determining how much you can afford because chances are good that you will have to pay more than the original price tag of $100K.