- Know the Home Affordability Index for a given locale: The Home Affordability Index or HAI is a number which indicates how much of the median income of of a family in a metropolitan city would it take to purchase a median priced home in that city factoring in current interest rates. An HAI of 100 indicates that it would take 30% of the median income to make the monthly payment on a median priced home in that location. The higher the number, the more affordable homes are, and the more room for growth. The HAI for Phoenix metro is 160 – that’s a great number which provides some confidence that real estate investing is a good bet and buying Phoenix rental properties is a good investment
- Population growth: Homes need people to live in them. This is a big topic of conversation among experts who study the real estate market. While nationally we’re seeing concerns about declines in population, there are some areas where population growth is expected to accelerate. Arizona is currently home to approximately 7 million people. By 2050, the population is expected to reach 13 million! That’s a great projection and is fueled by in-migration, employment, immigration, and birth rate. Those very same factors are part of what is driving our dearth of housing inventory. Builders have not caught up to demand since the housing crash of 2008, and we have more people moving into the state than out via relocation and deaths. Housing will continue to appreciate as demand exceeds supply. And with a growing population, demand will remain strong making buying Phoenix rental properties a good investment
- Economic outlook: At the risk of stating the obvious, people who have a mortgage or rent to pay need jobs. The economic outlook for a locale is in large part dependent upon the growth of employment opportunities. If you’re currently living in Phoenix, you know that our business base is growing and companies, large, medium and small are depending upon the skills and talent of the people living here to keep them going and growing. Just check out the economic outlook for cities like Chandler and you’ll be amazed at the growth in the tech and financial sectors.
- Location, location, location: Of course real estate is a local game and not every part of a metropolitan area is optimal for owning rental properties. When looking for a Phoenix rental property to invest in, it’s important that you work with an agent who has the tools to see if the numbers for any particular property will work to provide you the return on investment that makes sense for you.
- If you’re interested in exploring the possibilities and benefits of owning a rental property, call The Sharyn Younger Team and we’ll guide you toward making real estate a part of your global financial plan
Wednesday, June 28, 2017 / by Sharyn Younger
Is Buying Phoenix Rental Properties A Good Investment?
I’ve always said that the smartest people I know don’t know everything. But they know people who have the answers to their questions. One of the things I love about real estate is the constant learning experience. And I’m smart enough to know that I don’t have to have every answer to every question; but I better know the people who do. That’s how I am helping investors add real estate to their portfolios and build wealth for themselves and their families. My go to real estate investment guru is Marcus Green with Green Management Group. Here are his tips for answering the question: Is buying Phoenix rental properties a good investment?