If you are considering making an investment in rental property, Phoenix and Tucson are two markets that are likely to provide a healthy return on your investment. Although Phoenix and Tucson were hit hard by the collapse of the housing market and home prices fell dramatically, real estate values have seen improvement over the last few years with no end in sight. This represents a great opportunity for investors to buy now while prices and rates are still low. Furthermore, both cities enjoy a significant demand for rental properties. In addition to a large pool of renters due to the universities and military, the economic downturn also caused many people to become renters because of losing their homes in foreclosure. All of these factors make Phoenix and Tucson excellent areas to purchase rental property in 2014.
Here are just a few reasons why Phoenix and Tucson are hot markets for buying rental property in 2014:
Golden Opportunity Right Now. Both Phoenix and Tucson are populated with large numbers of homeowners in distress because of over-borrowing a decade or more ago. Their misfortune is a great opportunity for investors to swoop in and get great deals on real estate. Once prices hit rock bottom in Phoenix in 2011, investors flocked to snatch up properties. As the market has recovered over the last couple of years, the frenzy has slowed down, but excellent bargains are still to be had by savvy investors.
Sustained Population Growth. Arizona’s relatively low cost of living combined with its warm, sunny climate make it appealing to many people, particularly retirees. The job market in both Phoenix and Tucson is growing again and the population in both cities continues to increase. These are two big positives for people looking to invest in rental property in the Phoenix metro and Tucson areas. Experts predict that Phoenix and Tucson property values will continue to rise in the future. This could mean a big return for investors that buy now while home prices and interest rates are still low.
Strong Military Presence. The strong military presence near both cities can also be beneficial for rental property owners. The Phoenix area is home to Luke Air Force Base, while Davis-Monthan Air Force Base is located within the Tucson city limits. Luke AFB is one of the largest military bases in the world and Davis-Monthan AFB is one of the most active bases in the U.S.
Proximity to Major Universities. Both Phoenix and Tucson are home to major universities. Not only do universities provide undergraduate and graduate students as a source of potential renters, but also faculty and staff. The University of Arizona and Arizona State areas can be be goldmines for investors because rental demand insures low vacancy and higher rent than in other areas.
A quality property management company can help you protect your Phoenix or Tucson rental property investment. Fort Lowell Realty and Property Management has served property owners in the Tucson and Phoenix areas for over 30 years. If you own Phoenix or Tucson rental property and want the best property management possible, contact Fort Lowell today.