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Investing in Arizona: Buying in the sun without getting burned

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guest | 24 May 2011, 04:04 PM Agree 0

After the U.S. suffered its worst housing crash in history, Phoenix is leading the charge to recovery. Following a rapid rise in housing prices in the mid-2000s, Phoenix experienced a punishing decline in 2008 with prices falling below year 2000 levels.
 
Once the dust settled after the drop, it became time for investors to make their move to capitalize on this unique opportunity.
And Canadians are leading the way, having become the largest group of out-of-state investors in Arizona.
Liquidation Sale, Sale, Sale
 
"No one has ever seen a market like this before," says Eben Calder, a Phoenix professional real estate investor. "Not since the great depression has there been a drop in housing value like the current one, and back then, only 2% of homes had mortgages."
 
So the market in hard hit cities like Las Vegas and Phoenix is unprecedented for Americans and downright foreign to Canadians.
Phoenix real estate has become a bank liquidation sale with 70% of homes currently sold since the bubble going through foreclosure.
 
This situation does not exist in Canada, due to different laws regarding foreclosure and power of sale, and with less than 1% of homes in mortgage default.  Banks in the U.S. are struggling and over 250 banks have failed in the last three years.
 
With billions of dollars of non-performing mortgages on the books, and regulators tightening their rules, the banks have been desperately selling properties at a loss.
 
Professional Investors flock to Phoenix
 
As this process of liquidation, which began in the fall of 2008, moved forward, investment funds and sophisticated investors, recognizing a buying opportunity, moved into the market and began acquiring houses.
 
Sales to investors have accounted for 30% of all sales, which now total in excess of 50,000 homes, representing an investment in excess of $6 billion.
 
Much of this investment now comes from outside of Phoenix due to the fact that this market has been operating at this level for two years, and much of the capital available locally has been consumed.
 
This perfect storm of real estate trends has created new and rare opportunities for investors to profit. Single-family homes, which are not normally traditional investment properties for professionals, have fallen so far in price that they have become very attractive to the big boys: REITs, hedge funds and private equity groups.
 
To learn more about how to build a fortune investing in Arizona, download a copy of our June 2011 issue.
  • ArtisanREG | 14 Sep 2011, 07:58 PM Agree 0
    According to Zillow, the median home price in the Phoenix area was $98,900 in June 2011. With a 10% down payment you can have a mortgage payment on your vacation home in Arizona of less than $600!

    Where else in the country can you enjoy 8 months of wonderful weather, no natural disasters, 4 major sports franchises, hundreds of golf courses, a low cost of living, the lowest gas prices in the country and easy access to a major international airport for less than $600 a month? Are you beginning to notice why Arizona is still the best market to own your second home in?

    So pack up the sunscreen. Put on your shorts and flip-flops. Grab your golf clubs. Find a professional who knows the market (shameless plug). And get down here a little early this year. This looks like it’s going to be a banner year!
  • Patrick Jorgensen | 14 Sep 2011, 07:58 PM Agree 0
    According to Zillow, the median home price in the Phoenix area was $98,900 in June 2011. With a 10% down payment you can have a mortgage payment on your vacation home in Arizona of less than $600!

    Where else in the country can you enjoy 8 months of wonderful weather, no natural disasters, 4 major sports franchises, hundreds of golf courses, a low cost of living, the lowest gas prices in the country and easy access to a major international airport for less than $600 a month? Are you beginning to notice why Arizona is still the best market to own your second home in?

    So pack up the sunscreen. Put on your shorts and flip-flops. Grab your golf clubs. Find a professional who knows the market (shameless plug). And get down here a little early this year. This looks like it’s going to be a banner year!
  • ArtisanREG | 14 Sep 2011, 08:58 PM Agree 0
    According to Zillow, the median home price in the Phoenix area was $98,900 in June 2011. With a 10% down payment you can have a mortgage payment on your vacation home in Arizona of less than $600!

    Where else in the country can you enjoy 8 months of wonderful weather, no natural disasters, 4 major sports franchises, hundreds of golf courses, a low cost of living, the lowest gas prices in the country and easy access to a major international airport for less than $600 a month? Are you beginning to notice why Arizona is still the best market to own your second home in?

    So pack up the sunscreen. Put on your shorts and flip-flops. Grab your golf clubs. Find a professional who knows the market (shameless plug). And get down here a little early this year. This looks like it’s going to be a banner year!
  • Sarah Reiter | 29 Feb 2012, 08:37 AM Agree 0
    I would like to add that currently inventory in AZ is at extreme lows and has been for several months. There is no shortage of interested buyers/investors. 35% of my past clientele are Canadians. Most homes provided they are priced well for condition have multiple offers within days. I showed a home yesterday that had five offers within the first few hours of being listed and the home two days before that had 24 total offers. Expect great investment opportunities as well as some competition! I work with area wholesalers as well for non-MLS properties to reduce competition.
  • Irina | 15 May 2013, 05:58 PM Agree 0
    Investing in USA due to the recent RE market crash is attractive but not a good idea due to US national and international politics. Most of American is moving out of US afraid of being locked in they own country. Why now invest internationally in the rapidly grown markets like Ecuador? Costa Rica, Panama and Oceania are getting more urbanized and expensive to live. However, there are many others.
    Ecuador is consistently voted as one of the best places in the world to retire for last 6 years by the International Living magazine. Ecuador is quickly becoming the number one choice for North Americans and Europeans to live or enjoy a second residence. The Hidden Paradise Where A Couple Can Live Comfortably On $1,000 a Month or Less. (http://internationalliving.com/Countries/Ecuador/). There are many reasons to choose Ecuador: http://internationalliving.com/countries/ecuador/why/.
    . I would like to introduce Ladare Pacifica gather community that is design with sustainability in mind. Ladera Pacifica is the first development in Ecuador designed specifically to make everyone feel comfortable, secure and a welcome member of the community with access to the recently build urban infrastructure of highway and bridge of eco-city Bahia de Caraquez and surfing village of Canoa.
    The community has been designed as an eco-friendly community that is in harmony with the environment conveniently located inside ecological reserve, Hacienda de Recreo with stunning view of Pacific Ocean from each single house. The owner of Hacienda generously allowed our executive Ladera Pacifica owner to have an access to Hacienda's property which remains in its natural state with walking trails, creeks and variety of flora and fauna that was designated by the Ecuadorian government and New York botanical garden as an ecological reserve. Ladera Pacifica offers you the opportunity to live in a gated ecological community.
    Investment has a rapid and constant return. Buyers who invested in 2012 make 32% profit due to the rapid increase of the market. Price of house keep raising every days.
    We will be happy to keep you posted on the progress updates. Welcome to join and like us on the Facebook at https://www.facebook.com/pages/Yuma-Engineering-Ladera-Pacifica/305221952850610?ref=hl and become friend of Ladera Facifica at https://www.facebook.com/#!/groups/219029861505781/ to "Like" our FB pages, so you can be automatically updated when new pictures will be posted. Do not hesitate to explore our website at www.yumaeng.com/laderapacifica that will help you to answer many questions about the Ecuador laid-back lifestyle.

    Do not hesitate to contact us irinak@yumaeng.com.
  • John Edmunds | 08 Jan 2014, 06:06 PM Agree 0
    Las Vegas Of Course! 320 days of sunshine, a half hour from the famed Colorado River, boating, skiing, jet skiing. 660 miles of shorline with some of the most beautiful desert beaches on "Lake Mead", the tallest mountains in Nevada, 12,000 ft Mt. Charleston with snow skiing just 45 minutes west of the Strip. Oh and the STRIP, the entertainment capital of the world just minutes from your door. Las Vegas is an excellant investment/retirement option. Don't wait too long. Las Vegas is running out of land look for huge appreciation in the coming years.
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