The biggest secret to success in the real estate market is to treat the purchase of the house as a new investment. Whether you want to buy property for long-term rental, original Airbnb, or vacation house for your family, in any situation, a buyer must think about how profitable the estate could be, even if you consider it a permanent home. No matter how big of a step buying a property is, with the guidance of top real estate agents in Arizona, you’ll make your American dream come true. The housing market in the US changes every year, and local trends vary from state to state and even from city to city. That’s why your realtors, no matter where they are from, will be a great tool in finding the best housing investment for you.
In this article, you’ll find tips on how to get ready before stepping into the real estate market, the top cities that welcome newcomers, and the benefits of partnering up with real estate agents. The key to success is choosing an agent with specific knowledge of the city and neighborhood you want to relocate to. For example, with top realtors in Phoenix, AZ, you’ll get deeper insights into the state capitol’s nuances and guarantee fast closing. Make wise real estate investments across the Southwestern state with these tips.
Get Ready for Investment in 4 Easy Steps.
A down payment alone doesn’t prepare you to invest in real estate. Here are the first steps to take to prepare yourself before diving head into the housing market.
1. Explore your financing options
In this day and age, there are plenty of options to choose from on how to secure your investment. Don’t put off figuring out financing till the last minute. Finding the best financing option for your specific situation takes time and research. For guidance, consult an experienced investment realtor or mortgage lending company.
- Bank loans. Usually the most popular and secure option among first-time home buyers. However, keep in mind the time you’ll be stuck with loan payments for up to 30 years.
- Owner financing. While it seems great on paper, owner financing is not that common in real life. The seller acts like a bank and offers a financing solution to benefit buyers with lower credit scores. In practice, the seller keeps the property registered in their name, and the buyer only gets full custody after paying off the debt to the seller.
- Home Equity Line of Credit (HELOC). HELOC is an excellent option for those who own several properties already because you borrow against the equity you already have in a home. A buyer could use most of the equity to pay for the property in cash straight away. While the interest rates are low, they are increasing, so HELOC is not the best method for long-term financing.
- Cash offers. Cash will make you stand out as a buyer. From a seller’s point of view, there’s nothing more secure, but it doesn’t mean that it will give you an advantage in negotiating the price. Having enough cash will simply make you more likable. If another potential buyer with a loan can outbid you, the seller may accept your offer.
- Hard money loans. We only recommend hard money loans for buyers who are interested in flipping their houses and those who are constantly on the market. While they let you avoid the red tape from banks and get access to money quickly, they can be very risky. They have a short funding time frame and require collateral.
2. Set the list of requirements
Get your priorities straight. Depending on your needs or vision, decide what factors are most important to you about this investment. Examples of factors to consider include your budget, ideal size, precise location, parking spaces, and garden area. Having a list of requirements will help you find your best-suited option for an investment.
3. Explore the market
While the real estate market fluctuates nationally, research the specific trends local to Arizona. Tracking the highs and lows of different seasons will help you find the best time to pounce on a sale. Explore the cities and neighborhoods to make sure that the area suits your lifestyle or would be desirable for tenants.
4. Hire a local professional real estate agent
Above all, put your trust in the experienced realtor. Choose an agent who has expertise in your chosen locations and understands your priorities. That way, you can rest assured that they will advocate for you during negotiations.
Arizona market outlook: Hottest spots for investment
The “Grand Canyon State” has a fast-growing population and economy. The climate and national parks make it a desirable destination among tourists worldwide. So here are some promising cities that are worth your investment.
Phoenix
Home to more than 5 million people, the biggest city in Arizona state is bound to be on the list. Phoenix attracts millions of tourists every year and is a thriving location for short-term rentals and vacation houses. The desert climate, adventurous nightlife, and prestigious restaurants make it a great destination. Besides that, the suburbs are calm and great for families. Phoenix has a growing job market and a stable economy. From a real estate perspective, Phoenix attracts newcomers from both rural Arizona and out-of-state.
Scottsdale
The high quality of life, prestigious education options, and high-paying jobs make Scottsdale a convenient and safe city to settle in. Additionally, the Scottsdale tourism industry has been going strong for years, making it an attractive market for both long-term stable rentals as well as for short-term tourist rental units. From a big family house to a condo, Scottsdale offers the affordable property to invest in.
Tuscon
As a calm, family-oriented city, Tucson has pretty high rent prices. With beautiful houses, stunning views, and financially stable tenants, it guarantees that your investment will pay off very soon.
Tempe
Home to Arizona State University, Tempe has a growing real estate market. The students will always keep arriving in the city seeking stylish condos or a house to live in. With a thriving nightlife, it also makes a great place to invest in both rental properties and commercial ones.
The Bottom Line
No matter the investment goal, the real estate market in Arizona has plenty of options to satisfy the buyers. From cozy family towns to fun student cities and crowded tourist destinations, the housing market is expanding daily. Partnering with a local and trustworthy realtor will give you further guidance to make the most of your investment.
