Rent Real EstateTempe, Arizona Housing Market Hot For Investment
A popular college town near Phoenix, Arizona, Tempe is attracting investors as well as residents say local Realtors.
With their proximity to Arizona State University, certain areas have significant rental and resale investment opportunities for buyers and sellers alike," says Realtor Audry Wolff. "Student housing on campus is scarce and expensive, so many residential properties in this area are sold to students or their parents as an inexpensive alternative to campus housing. For investors, there is new a supply of potential tenants with the start of each school semester."
Wolff explains, "Tempe, as well as most other communities in the greater Phoenix area, has recently become a hot spot for investment in real estate. Raw land, commercial property and residential homes - new and resale - are the beneficiaries of investment dollars from all over the U.S. and the world. Relatively low prices with the forecast of explosive growth as baby boomers retire and new businesses locate in Phoenix are fueling this investment. Although many people are making and going to make large sums of money on some investments, people unfamiliar with Phoenix need a savvy guide to lead them in the right direction.
She instructs, "Remember that real estate investment comprises three avenues of return: appreciation - the value of your property increases; income - rental property can provide a steady source of revenue; and depreciation - if you"re paying too much in income taxes, rental property can potentially save you a bundle in taxes."
Says Realtor Blair Ballin, "Once thought of as only a college town, Tempe is anything but that. The city of Tempe is putting itself on the map as the place to be; with its lakefront properties, exclusive upscale condos, wonderful modern and trendy downtown shopping, and tasty foods of all kind, Tempe is a great place to live and invest. And, with Phoenix investing in projects like the light rail, attending ASU has no longer become a long drive for those who do not live in Tempe."
"Tempe"s real estate market remains strong," says Realtor Kent Gagon. "With recent rises in mortgage interest rates the local market has experienced a large increase in the number of buyers who are in a race against time and further interest rate hikes. As a result, houses that are priced properly, and in good condition are flying off the market nearly as fast as they are listed for sale."
He adds, "Scott Homes has started construction of their new semi-custom Tempe community at the corner of Rural and Elliot in Tempe. Forty-two Lots are being released to the public for purchase, through a lottery system that allows qualified buyers to put their name in a barrel for the chance to be drawn, and build the home of their dreams on what could be one of the last semi-custom neighborhoods in South Tempe. The next drawing for this lottery system is scheduled to be sometime in September.
"July Statistics updated 8/19/04 for all Tempe areas show,120 homes currently for sale not including FSBO and Realtor exclusives, with an average listing price of $297,861 and an average days on the market of 36," says Gagon. "There are currently 171 homes with sales pending, with an average list price of $250,310 and an average days on the market of 26. There were 171 homes that closed escrow in July with an average sales price of $225,502 and an average days on the market of 38."
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