Foreign Buyers Increasingly Attracted To Arizona Real Estate

Foreign Buyers Increasingly Attracted To Arizona Real Estate is available on: www.phoenixpropertymanagementcompany.com
Foreign buyers like to purchase property in the United States because they see the real estate market in areas like Phoenix, Arizona are stable. According to a study by the National Association of Realtors, the international sales of US homes is at the second highest it's ever been in recent years. Owning property in the US is a significant investment. Foreigners are purchasing homes not only to live in them, but to rent out as well.
In the past five years, 70 percent of Realtors have stated that international clients have contacted them looking to potentially purchase a property. From April 2014 to March 2015, international buyers purchased $104 billion in American real estate.
Arizona is the third largest state for international sales. Florida and California are the top two. Texas and New York also sell a lot of homes to foreigners. These states make up 61 percent of international sales.
Arizona real estate is popular with foreigners because of the warm weather. There are some other factors as well. This includes the distance to their home country, if they have relatives already living there, and if there are opportunities for both jobs and education. Out of the 68 foreign countries that purchased homes in the USA, there are five the make the majority of purchased real estate. They are Canada, China, Mexico, India, and the United Kingdom. These countries make over half of all purchased real estate, with Canada and China leading the way.
Not all people from different countries like to make purchases in Arizona. Chinese buyers do not rank very high in the purchase of Arizona homes. Chinese buyers make the bulk of their purchases in California. They also like to make purchases in Washington State, New York, Massachusetts, Illinois, and New Jersey.
In the state of Arizona, Canadians make up 46 percent of the foreign home buying market. They are likely to purchase a home for a vacation use or as a rental property. They also are buying condos and apartments instead of single family home. Many Canadians are also purchasing homes in the state of Florida. They prefer the Sarasota and Venice areas as well as Palm Beach as opposed to Miami.

Canadians are the second largest group of foreign buyers of US Real Estate. Right behind China. pic.twitter.com/7YaUmVpdqq

— Steve Saretsky (@SteveSaretsky) 9 August 2017

Foreign buyers are important in the real estate market. They spend on average just under $500,000 on a home. Other buyers average a purchase price of $255,000. In addition to paying more for a home, they also spend more money on furniture, eat out more often at restaurants, and attend more sporting events. This is good for the economy. They are not only spending more on the home but spending more in general. Businesses are seeing an increase in their profits due to international buyers.
Realtors need to improve their skill sets when they work with foreign buyers. They need to have a global perspective of things and have experience working with those from a different culture. They need to learn different real estate practices to get along with others as well. The NAR will help realtors expanding their skills and work with those on an international level. A realtor can train to be a Certified International Property Specialist. Be sure to visit this association online to find out more information.


source http://phoenixpropertymanagementcompany.com/?p=2762

Why It Makes Good Sense To Hire A Property Management Company

The article Why It Makes Good Sense To Hire A Property Management Company is republished from: http://www.phoenixpropertymanagementcompany.com
Owning a rental property is one of the strongest investment options available for generating long-term income. There are naturally day-to-day duties and responsibilities connected with maintaining the property, dealing with tenants, and any other issues that arise. These are usually manageable and not too time-consuming when it involves only a single property. But once you get into the upkeep of a portfolio of multiple properties, the responsibilities can become more onerous. Your investment creates more stress and worry than you had bargained for, and the project is no longer enjoyable. Before things ever get that bad, it's time to engage the services of a professional property management company.
Typically, the property manager takes responsibility for the routine tasks that take up the most time and hassle for a property owner, so you are free to reap the rewards and enjoy your investment. Screening potential tenants, dealing with contracts, collecting rent and dealing with problems with tenants, repairs on site and ongoing maintenance are can all be handled impartially by property management companies. Many property managers are flexible and can offer a partial service for a negotiable fee if you or your contacts are willing or able to do some of these tasks.
Usually, the property manager will interact directly with rental applicants and tenants on behalf of you, the property owner. They can arrange the marketing and advertising of rental properties, hosting of viewings and meeting interested candidates, screening prospective tenants and collecting deposits and rents. Property managers can be the first point of contact for ongoing repair issues or emergency maintenance. They are also responsible for dealing with tenant complaints and can assist you in legal and practical terms if you ever have to deal with an eviction.
It is a significant investment to employ a property management company, and this is a factor which leads so many property owners to attempt to take full responsibility themselves. But for property owners with a full-time job, having the time and availability to look after a portfolio of more than three rental units can become too much of a challenge. The management fees make more sense when compared with the potential income from a larger stable of properties, and the relief of leaving the hard work to a professional manager.

Absentee owners, or owners of a widely distributed portfolio of properties, may find that hiring a property manager in the local area is the only sensible option.
If you'd prefer not to have to attend a plumbing crisis at 3 AM, repair and decorate woodwork or manhandle leaking washing machines, then a good property manager will have the know-how and a network of trusted professional backup to tackle these and all manner of problems daily. If you feel property maintenance and calling on skilled people to organize it is beyond your skill set, then enlisting a property manager is a sensible option.
There's a long list of issues that may arise with rental property. Using a property manager who's seen them all before and dealt with them is the best way to prevent problems from becoming nasty, expensive or stress-inducing surprises, and ensuring that your experience of owning and letting a property remains an enjoyable one.


source http://phoenixpropertymanagementcompany.com/?p=2758

Residential Rental Property: Is It A Good Investment?

The following article Residential Rental Property: Is It A Good Investment? was originally seen on: Red Hawk Property Management Website Blog
If you have money to invest and you are considering investing in residential rental properties, you may be wondering whether or not it is a good idea. In this article, we will go over the things that you should consider before deciding to invest in rental properties.

What Should You Consider Before Investing In Rental Properties?

The first thing you should decide is whether or not you are going to live in the building that you buy. If you rent out the entire property and you reside elsewhere, you would be able to deduct all expenses related to the building from your income. If you decide that you are going to move into the building, you would only be able to deduct the expenses related to the units that you are renting out. Should you decide to sell your property at some point, The portion of the building that you were living in would be exempt from the capital gains tax. If you rent out the entire building and you live elsewhere, all of you taxable gains would be taxable.
If you have a specific piece of property in mind that you are hoping to buy, you should make sure that the realtor's listing is correct. If the number of units in the listing is inaccurate, it can change the terms of the sale considerably. To get this information, check the assessment roll. For example, if the building has a basement and it is considered to be a livable dwelling, it will count as an additional unit, which means that you would need to put down a larger down payment.

How Much Of a Down Payment Can You Expect To Pay?

If you are planning on renting out every unit in the building that you purchase, you would need to make a minimum down payment of 20 percent of the price of the building. If you are planning to buy a duplex and you intend to live in it, you would need to make a 5 percent down payment of the purchase price as long as you have mortgage loan insurance. If you are buying a three or a four family building and you are going to live in it, you would need to put down at least 10 percent.
These down payment rules are the same universally for all American financial institutions.

What Are Other Fees Associated With The Sale?

There are several fees that you would need to pay besides the down payment. These charges include:

• Welcome tax
• Notary fees
• Inspection costs
• Property tax adjustment (The school taxes and municipal taxes that you would be responsible for)

To cover all of these fees, your American loan insurer would calculate a standard amount, which is 1.5 percent of the purchase price of the building that you are planning to buy. In some cases, unexpected issues can arise, which would cost you more money. To cover you if something like this should happen, many financial institutions including Wells Fargo recommend changing the number from 1.5 percent to 3.5 of the price of the building. The additional money would be put in a line of credit or a savings account that is easily accessible.

Besides the Building's Condition, What Else Should You Look For?

There are plenty of things that you should look for other than what the building looks like on the inside and out.
If you want to find tenants as easily as possible, you should look at how close stores, schools, and other important businesses are to the building.
If you aren't planning to live in the building, you should consider the proximity of your home and your rental properties to make it easier to collect the rent each month.
If you want to be sure that you are not overpaying when you buy the building, you should take a look at how much similar buildings were sold for in the last year. This is something that a realtor can help you with.
If the building already has tenants, you need to find out about them. Find out how long each tenant has been living in the building and when their lease expires. Also, find out how much the tenants are paying for rent.

Tips For New Landlords

You should make sure that the lines of communication are open between you and your tenants. You want to include every little detail in the lease and make sure that you put everything in writing.
Many financial institutions allow you to schedule the due date for your mortgage payments. You should schedule them for the middle of the month. This will give you the leeway you will need if some of your tenants don't pay their rent on time.
You should open up a separate bank account strictly for managing the building. If you have one account for rents, mortgage payments, and expenses, it can make accounting much easier.

What Does It Mean To Leverage Real Estate?

Leveraging your property is when you take out a second mortgage on your first investment property to purchase a second building if you don't have the capital to do so. In most cases, you can get up to 80 percent of the worth of your first building to put toward your second.

The Pros Of Investing In Real Estate

The reason that most people invest in rental properties is that they like that they can see and spend the money that comes in each month. If you have other investments and you want to diversify your assets, real estate is a great way to do this. If you want to own your own home but you are living on a tight budget, The rent that you collect from your tenants will help you make your mortgage payments.

The Cons Of Investing In Real Estate

Real estate investing isn't for everyone. If you like being a manager, it could work. To be a good landlord, you will need to have a lot of patience with your tenants, and you need to be available at all times to fix any problems that come up in the building. If you don't think that you can handle something like this, real estate investing may not be the best thing for you. If this is the case, you should meet with a financial planner to discuss other investment options.


source http://phoenixpropertymanagementcompany.com/?p=2747

Phoenix Real Estate Booming: The Valley Expected To Be The #1 Housing Market In The US

The blog post Phoenix Real Estate Booming: The Valley Expected To Be The #1 Housing Market In The US was first published to: http://phoenixpropertymanagementcompany.com

Hats off to Phoenix

According to the latest Realtor.com forecast, the top housing market in this country for 2017 is Metro Phoenix.
This distinction is not only welcome news, but it's long overdue. A constant increase in sales and escalating housing prices has put buyers on alert: Act now! Another fact that increases Phoenix's healthy real estate market is that today there are fewer foreclosures than ever before.
National real estate website, Realtor.com, has already predicted a rise in Phoenix area home prices of nearly six percent with sales very likely to top seven percent by 2018.
In this unique city where the Wild West, Modern America, and Old Mexico blend smoothly together, it's not only the encouraging price increases but the fact that 2017 promises to be one of the top home sales years for the Greater Phoenix Area.
This is fantastic news for the Valley thanks to the typically more affordable home prices in the West.
Los Angeles, along with Sacramento and Riverside, California also made it into the top five list for rising home prices in the West, all with higher prices and a general lack in many of the amenities Arizona offers. Even good neighbor Tucson, at this point ninth best hosing market, can expect a real bounce in prices this year.

Interest Rates are Rising

Unfortunately, the great news for the Arizona housing market is not without its downside: Interest rates are rising again, and of course, rising interest rates never help the real estate market.
Sales forecasts for this year are predicted by Realtor.com to drop in all areas of Arizona as higher interest rates go into effect. This applies not only to Arizona but to the entire nation.
Only a few years back, Phoenix went through a boom and bust making it more important than ever for potential buyers to keep their focus on the facts rather than pay attention to all the hype.
In 2006, when Realtor.com told that Phoenix was at the forefront in U.S. home price increases, no one cheered. This notable increase was primarily driven by buyers on a speculation spree that, as we know, turned into a dark morass of bad loans that resulted in the crash.
Experts appear to believe that the rising interest rates come from the anticipation of job growth and higher wages. Realtor.com predicts that interest rates may climb to 4.5% by next year.
Overall, most investors believe the sudden spike in interest rates over the past month results from the election jitters felt by investors.


source http://phoenixpropertymanagementcompany.com/?p=2742