So you have enough cash to invest and make your money work for You? In a situation like this, the common question people ask when finding investment opportunities is what type of investments they should make. Owning rental properties is a common discussion, and owning rental property in Arizona has been even more discussed recently.
The stock market for sure could be the way, but for most people, it’s just too risky. After all, if all it took to make money in the stock market would be to buy random stocks and get rich overnight, everybody would be doing it.
Real estate, on the other hand, is the cornerstone of all investments. Take, for example, the words of Theodore Roosevelt: “Real estate is the basis for all wealth“ or Andrew Carnegie: “80 percent of all millionaires made it through real estate“. These people knew what they were talking about.
Now, let’s get to the topic you came for-
Is owning a rental property in Arizona really the way to go?
What’s so great about owning a rental property in Arizona?
Imagine having consistent cashflow from assets as well as knowing that those assets are appreciating in value. That’s exactly what Arizona offers.
Property values in Arizona have been increasing every year by almost 9% for the last few years.
It’s a fantastic combination to have cashflow from the property, knowing you’re making even more money due to the appreciation.
One of the best cities to invest in specifically in Arizona is Phoenix. This city is continuously expanding and offers a proven history of increasing values for single-family homes caused by more people that are moving in each year since Phoenix offers a diverse job market.
Scottsdale is another city in Arizona with surging property values.
Another reason why Arizona is an astonishing country to invest in is the overall economic growth we have seen over the past few years, which leads to a surging job market.
Is it safe or risky to invest in Arizona?
We believe that investing in Arizona is safe due to the following fact- Home prices are expected to keep rising in the next few years, yet the prices will stay in balance with local incomes. This means your tenants will have enough money to pay for the rent, and you would even be potentially able to raise the rates.
There’s only one big question that still remains.
But what about the current situation?
Excellent question.
We have indeed noticed a downtrend in the global real estate market. There are overall fewer buyers and sellers. Experts predict that it most likely will end by the end of 2020. And that things are going to go back to normal.
In summary, the worldwide real estate market is taking a hit due to the COVID-19, and there sure is much uncertainty.
Tenants are being squeezed since they feel a lack of liquidity, which results in delaying or stopping contractual lease payments.
The overall prediction of most experts is that the worldwide real estate market will rebound at the end of 2020 and in the whole year 2021.
 We don’t want to talk too much about the current situation with the COVID-19 since we already wrote an article about it. If you want to read an even more comprehensive look at the current situation, click here.