Phoenix Metro–Now is the time to Invest!
Mike Reid, President & Owner of Ultimate Properties
Renters dominating the market
Since the 2008 real estate collapse, the metro-Phoenix rental market has steadily collected new tenants through short sales and foreclosures.
Many people lost their homes, but they didn’t leave the Valley, and surprisingly they haven’t recycled back into the sales market as quickly as anticipated. In fact, according to a recent report by CBRE, “the number of renters continues to outgrow the number of homeowners in Arizona.”
Increasing housing demand
The demand for rental houses has been at an all time high because of this increased number of renters. For example within Ultimate Properties, 30% of our rental homes that are available are rented and a deposit received before they go vacant. In the almost 30 years I have been involved in property management, the rental market has never been this good.
Reasonable interest rates
With a 25 percent down payment mortgage rates are hovering around 5.5 percent. This is a very manageable rate in the business model of rental real estate. However, rates have been slowly going up and the window of opportunity might not be sustainable. Bottom line, we can’t predict the future and the rates are good now.
Phoenix-metro…a safe investment
Overall, with a large pool of tenants, a highly competitive rental market that produces 2-3 applications for every available house, high rental rates, and reasonable interest rates—now is the time to consider purchasing a rental home to round out your investment portfolio.