Two weeks ago, I received an e-mail from a prospective client looking to get involved in investing in the Phoenix real estate market. I sent him some basic information about Phoenix investment, particularly the west Valley communities of Glendale, Surprise, Avondale, Peoria and El Mirage.
I also sent him an investment disclosure which sets the tone for investing in Phoenix -- or anywhere, for that matter. In short, it says you can lose money investing in real estate, a fact many speculators lost sight of much as they did in the stock market six years ago.
He sent me one property he and his wife were interested in and we prepared an offer only to learn the house already was under contract as of an hour earlier. So he sent me a second hourse. In running the comps for the home, it was apparent the house was priced well above market average. Amazing for our current buyers' market, but true.
I could have stopped there, but I instead ran a search for similar floorplans in the same subdivision. And in doing so, I found an idential home on a good-sized lot for $20,000 less. More importantly, at least to an investor, there's a tenant in place in this property through March 2008 at a good rental rate with a built-in rent increase next winter. And in meeting with the tenants, it's apparent they have little to no interest in moving out of the home anytime soon.
One of the factors many experts are using to steer investors away from Arizona is the high vacancy rate. And it's true, there is a lot of rental property currently available in the Phoenix area. But it's also true that opportunities remain, and sometimes at a better than expected price.
By relying on the knowledge of a neighborhood expert and someone who has worked with investors enough to understand their needs, this prospective client in a month's time will be the owner of a solid investment property in Phoenix Arizona. National news reports are one thing ... local knowledge and expertise, however, often are much better.
For more information about the Phoenix Arizona Real Estate market, visit my comprehensive website at http://www.DaltonsAzHomes.com
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