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.


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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.


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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

The Elliot Road Technology Corridor Mesa, Arizona Project Overview

The post The Elliot Road Technology Corridor Mesa, Arizona Project Overview is courtesy of: http://www.phoenixpropertymanagementcompany.com

With the Silicon Desert slowly expanding into Mesa, the America’s most conservative metropolis is starting to attract the attention of technology heavyweights across the country. For instance, Mesa is already home to Apple’s 2 billion dollar global operations command center.

Key Factors that Are Attracting Businesses to Mesa

The business attraction can be attributed to the persistent efforts that have been put in place by the local government to further encourage economic development in the region. According to the city’s Economic Development Director Bill Jabjiniak, two things will attract technology companies and other companies—infrastructure and the efficiency of land entitlement process.

Mesa’s ‘Elliot Road Technology Corridor’ today has more than enough infrastructures in place to lure any serious American company or a multinational. For instance, the city’s massive power system installation, located close to SRP’s Browning receiving station together with the 69Kv, 230kv and 500Kv transmission lines are colossal power infrastructures with a capacity to supply more than enough energy needed for industrial operations.

Another factor that is attracting Silicon Valley businesses to Mesa is the ease of access to SRP’s extensive, redundant fiber network. Companies can take advantage of this massive and unused fiber network to connect with the world.

Likewise, the decision by the local government to set up the Eliot Road Technology Corridor Planned Area Development Overlay, after the Mesa City Council’s unanimous approval in September 2014, has slashed entitlement time in the corridor by up to nearly 80%. This is something that investors cannot ignore. The overlay extends across areas directly north of Elliot Road from Signal Butte to Hawes Roads.

Apple’s Significant Impact on the Elliot Road Technology Corridor Project

The corridor already has secured Apple, who decided to continue their presence in Mesa, after their contractor—GT Advanced Technologies, filed for bankruptcy, jeopardizing the future of the former First Solar facility it occupied at Ellsworth and Elliot Roads. Although the bankruptcy petition by GT Advanced Technologies was considered a blow to the city’s economic development plans, it was not a fatal one.

[caption id="attachment_2704" align="alignright" width="537"] Apple Inc. will be a major player in the Mesa, Arizona economy.[/caption]

For the Mesa local government, staying the course to accomplish the desired economic development goals has not been so easy, especially with so many hiccups along the way. The entry of Apple in 2015, who injected 2 billion dollars into the economy, provided the much-needed bailout to Mesa’s fragile economic development project.

According to Christine Zielonka who is the director of Mesa Development Services, one reason the technology heavyweight chose to stay on, following their contractor’s exit was the ease of doing business with the city.

The presence of the world’s leading technology gadgets manufacturer has been a major boost for the local government’s efforts to promote the Elliot Road Technology Corridor project as it has shown a spotlight on Mesa and given the city a chance to market its amenities not only to American companies but also to other companies around the globe.

Apple’s Presence Alone Is Not Enough for the Project to Pan Out

Even though Apple’s presence is promoting the Elliot Road Technology Corridor project the best way it can, much of the project still does not resemble Silicon Valley as the area still consists of so many undeveloped plots of land. The only way Mesa can fully realize the full potential provided by the overlay as well as the existing amenities is if the local authorities come up with several in-development and planned projects that yield results. The presence of Apple alone is not enough for the city to accomplish its economic development goals.

What Does the Future Of Mesa and Its People Look Like?

Nevertheless, the economic future of Mesa looks bright. Besides the nearly finished 94,000 square foot health facility on Elliot Road Technology Corridor, many other major businesses have shown interest and announced their intention to join the project. For instance, DuPont Fabros’s decision to construct a data center campus on a 56-acre piece of land at Crimson Road just north of Elliot Road in future is good news for the economic development project. Niagara Bottling also announced their intention to construct a 455,000-sqare-foot bottling plant in the area worth 76 million dollars. All these new entries will create additional jobs for the residents of Mesa and boost the economy of the region.

source http://phoenixpropertymanagementcompany.com/?p=2702

Boeing To Relocate Jobs To Mesa, Arizona

Boeing To Relocate Jobs To Mesa, Arizona is available on: Red Hawk Property Management LLC

Boeing executives have announced plans to relocate hundreds of workers and jobs in their Shared Services Group from Seattle, Washington to Mesa, Arizona within the next two to three years. The division comprises 8,000 workers and provides support services to the other Boeing

[caption id="attachment_2699" align="alignright" width="300"] Mesa's Falcon Field Airport is the relocation zone for many of the Boeing empoloyees.[/caption]

units. Boeing (NYSE: BA) already manufactures Apache helicopters and has cyber security and drone operations at Mesa’s Falcon Field.

In a statement to defend the move, a Boeing official had these to say:
“This move will ensure that we are properly structured and positioned to provide the right services most effectively to help Boeing grow its business. The steps include efficiencies gained from automation, adjustments of the management structures, and the consolidation and the relocation of some of the work that supports enterprise-wide services over the next few years to Mesa, Arizona, and other Boeing sites.”

Boeing management had these more to say:

“We have just started engaging our employees in talks to help them understand the process and obtain their feedback as regards the issue. We know that such changes impact our employees and have thus chosen to speak to them directly this early to grant them the opportunity to consider their most appropriate path as we work through this. We are still at the beginning of the process that is expected to take around two to three years, and as such, we are still unaware of the number of persons who will be directly impacted and in what way(s).”

source http://phoenixpropertymanagementcompany.com/?p=2698

Should You Self Property Manage Or Put Up With A Property Manager Fee?

The article Should You Self Property Manage Or Put Up With A Property Manager Fee? is available on: http://phoenixpropertymanagementcompany.com/

Most property owners are often faced with the question if it is cheaper to manage their property or whether leaving property managers to do it is a better option. While some consider managing their property so as to escape the extra fee of hiring property managers, it is worth that you know it is not all about the charge but what the fee has to do with the services. Hence to get the answer to the question as stated earlier, you need to consider all the factors that make you hire the property manager, such as the value of your time and get to see if the services provided by your manager are much more worth that the fees charged.

According to research, most property owners are on the move to hire property managers. There is an increase in the number of landlords who prefer to have property managers manage their rentals while there is a decrease in the number of those who manage their property.

I believe you are now wondering why such a trend and why opt to hire a property manager while you can do it for free. The reason behind this is simple. No one would consider going for an expensive option while you can get a cheaper option, which means that hiring a property manager is cheaper as compared to managing your property. However, how can this be true while you will pay a property manager and you don't need to incur any fee by managing your property? Let's have a discussion and discover why a property manager is worth your consideration.

Time is money

Managing your property when that isn't your full-time job will take much of your time, not to mention that you will probably have to spend much of your valuable time dealing with tenants. This is likely going to make you lose much money especially if you have to leave your business to deal with your rental property residents' issues. This can worsen if your rentals are too far from your residence or business area. However, no matter the situation you are in, you cannot forsake your tenants as this may just make you lose another income source which means that you will probably have to go out of your business for some time. Such situations will make you make losses on your business especially if you need to deal with your tenants frequently. To avoid losing your valuable time you should consider delegating some duties, the most convenient which is leaving property managers to oversee your property.

Knowledge of the law

Did you know that there are rules set for a property owner to abide by? Failure to comply with such codes will only lead to costly pitfalls. Being a property owner who has more valuable things to deal with, you probably will not have the time to research on such rules and regulations. Besides, keeping up to date with changes to such codes can be hard, which can cause you to deal with costly legal charges or even the loss of your property. To ensure that your property and every undertaking related to it is compliant with the law, hiring property managers is a good step to take as you can have the assurance that you will not fall in the illegal arms of the law. The reason behind this is that property managers keep track of the rules and regulations supposed to guide property owners, thereby ensuring that your rentals meet the required requirements.

Offsetting tax

Despite the fact that you ought to pay the fee arising after hiring a property manager, you can still raise your tax benefits. This results when the management fee is counteracted against your tax.
While there are several advantages of paying the extra fee and having experts manage your property, the choice on whether to incur the fee or to manage your property ultimately depends on you.

Make sure that you weigh the benefits of hiring property managers to the fee charged as well as the value of your time and ensure that you make the right choice.

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