Time to buy a house in Phoenix, A?

Question

Hello good people,  I am pretty much new to real state. I know its a million dollar question, is it good time to invest into a new house, i am first home buyer, i am want to go for it as a long term investing.  Heard lots of advise, but looking for an advise from some expert here. Thank you

Account Closed · Answer

As a realtor, re investor and a native to Arizona I would caution you against investing in something you may not fully understand. Phoenix is the 5th largest metro in the country...to say that now is a good time to invest in Phoenix as a blanket statement is pure conjecture. It’s critical to evaluate your risk tolerance, skill set, experience, etc, Beyond that it is likely wise to understand the economics of return you expect, the length of your anticipated investment period, and a myriad of other elements. I hope this is helpful.

Regards,

Whitney

George Mevawala · Answer

@Surya Poudel it is a great time to invest in Phoenix! I am both a local investor ( I own & manage a fleet of 20 rental properties in the Phoenix/ Scottsdale market) and a realtor that specializes in helping find investment properties with both upside potential and strong future cash flow potential. We have seen signficant growth in the Phoenix market in the last several years, and it has been a very hot rental market.

My properties on average yield annual cash on cash returns of 25-30%. I am a buyers agent that helps my clients find the best opportunities in the Phoenix market to either follow my STR (short term rental) strategy, or great long term investment properties.

If you have any questions at all, feel free to reach out for any guidance. I am always here to answer any questions you may have!

Best,

George

Wes Blackwell · Answer

Whenever I talk to someone who's contemplating whether to buy their first home, here is the question I ask them:

"Assuming your monthly payment is $1,500/mo whether you rent or buy, and the end of the next five years would you have rather paid down $90,000 on your own mortgage or someone else's?"

If you're going to be staying in the Phoenix area for the foreseeable future (next 4-5 years at least) it's probably a good idea. But if you're unsure, looking for a promotion to the opposite side of town, or thinking of getting a divorce, you should probably wait.

You can always rent the property out if you need to move, or sell it. So don't think it means you're locked in forever or anything.

Probably the best thing to do is discuss all the options regarding your personal situation with a local agent who can help you explore the options here in Phoenix. We do this sort of stuff ALLLLL the time, so don't worry thinking you might be wasting our time if you don't decide to buy. We're more than happy to help.

If you do a little exploration and want to consider it further, next step is to talk to a lender and get the financial part of things looked at (how much of a loan you qualify for, down payment requirements, etc.). And even then you're not required to move forward.

Just take it one step at a time, explore what's possible, and work with someone to get your questions answered. Before too long you'll know whether it's the right decision for you.

Best of luck! And if there's anything we can do to help feel free to ask we'll get you pointed in the right direction!

Pamela Sandberg · Answer

Yes, you can have problems with rentals. Yes, you can have maintenance issues with a primary residence. Yes, everything can go wrong. But that is the nature of real estate! Personally, I always encourage people to start investing sooner rather than later. Appreciation is a big factor in Phoenix right now. Waiting a year will not only cost you rent money, but also the appreciation you WOULD have gotten in that time. I can't say for sure what's right for you, but I will say that you should SERIOUSLY consider buying your primary residence as soon as you are able.

Alan Grobmeier · Answer

@Paul Sandhu, lmao.  I should sit down and write a book w you if you haven’t written one already!  I’m sure your stories are both priceless and scary.

And probably amusing & sad.

The most ‘action’ I’ve seen is 20 trash bags of trash on move out.  I’m ‘sheltered’.  Lol.

But I can tell some great stories about crazy applicants.  Some ppl will say almost anything!

Paul Sandhu · Answer

Don't do it.  Find another investment with a higher rate of return and lower owner involved problems.

I have 23 STRs in this town.  Dealt unusual problems like prostitutes, overdoses, break ins, etc.  Plus normal problems like roof leaks, broken central heat or air, plumbing, etc.  You can too if you choose to invest in real estate.  But don't let that discourage you.

Michael Greenberg · Answer

In a recent study by Airdna, it ranked AZ as the #1 state for STR's.  I have multiple properties in the area and are now slowly divesting from my smaller condos as the market is saturated, and the HOA's are troublesome.  If you can, swim upstream to larger, luxury homes.  There is less competition, higher ADR's and honestly less aggravation from guests.

Alan Grobmeier · Answer

Residence ~ You're probably ok.  Just don't plan on leaving soon.  ;-)

Rental ~ Proceed with caution.  You won't find 1% unless it's in a war zone.  And even those have been bid up.

Nate Fanara · Answer

Primary residence, Buy. Phoenix continues to be one of the fastest growing areas in the country year over year.

Rental..........I'm not sure. I like to follow the 1% rule and i am not sure if that is obtainable, but i also don't buy investments locally (i'd like to though) so i have no insight with this.

Bevla Reeves · Answer

@Surya Poudel  YES! YES! YES!   Buy a house!! ;))

Good luck!

Time to buy a house in Phoenix, A?

Most Popular Reply