Feeling cold? Invest in Phoenix, AZ

Arizona is in the top 5 US States for economic and population growth and there is a lack of supply of new affordable housing in Arizona. Back in 2005 investing in AZ meant dubious retirement projects in the desert – a kind of Florida West with sand instead of the marsh. Not anymore. Phoenix has since evolved and offers investors a range of possibilities.

According to a recent article in Forbes magazine:

The strongest economic growth, and therefore strongest demand for housing, is in Phoenix, where jobs are being added at twice the national rate

Many of these jobs are in healthcare, retail, and the large finance sector. The past troubles have now been flushed through the system, so we can take at face value the recent price increases. Some pundits expect Phoenix prices to be up at least 25 percent over the next three years, which means you shouldn’t wait if you plan to buy or invest there.

Phoenix has a high proportion of renters (~ 40 percent), but because home prices in the former two are high compared to rents, investing in single-family properties to rent them out is most feasible in Phoenix – where the ratio is much more favorable and where housing needs encourage splitting single-family homes into multiple rental units. The relatively lower pay in the growing retail and healthcare sectors will expand renting in future years.

Robert Kavcic, senior economist at BMO Capital Markets in Toronto, expects the state’s economy to grow by 2.1 percent this year and 2.4 percent next year, following subpar strength over the past five years.

“Real GDP growth is expected to improve to a 2.1 percent pace this year, supported by strong job gains and firming housing-market conditions, and run slightly ahead of the national average in the year ahead as demographics remain supportive,”

Foreclosures are very rare and no longer a significant part of our real estate market. They are down by approximately 91% since 2009:

With the advent of technology, investors now have an opportunity to invest into projects that are located far from their cold homes. At R2Crowd, investors can now invest into properties located not only in Canada but also in Arizona. For more information on a live deal that is currently available for investment please log in by clicking here: R2Crowd.

PROJECT SUMMARY:

Participate in Equity returns on a 42 Home construction project with an experienced developer who has already completed first two phases in the area.

Location: N. 36th St and Palm Lane, Phoenix AZ, 85008

Investment Vehicle – Limited Partnership Structure

General Partner – RAS Development, Inc.

Minimum Investment – $10,000

Equity Close Date – December, 2016

Total Project Size – USD$6,240,000

R2Crowd Equity Raise: USD$580,000 (Developer is putting the other half)

Targeted Investor IRR: 39%/year.

Targeted Equity Multiple – 1.7x

Targeted Investment Period – 24 months

Property Type – New Single-Family Homes (36 x 1,680sf + 6 x 1,520sf = 42 Homes)

All homes include 3 bedrooms and 2.5 bathrooms

Average expected sale value: $234,000

Total Land Size – 108,900 sf., 2.5 Acres

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