Crisis Or Opportunity – The Truth About The Arizona Real Estate Market

The present real estate market is acting just as it should on the heels of the greatest real estate boom in the last 40 years. There is a long way to fall to get back to “normal”. This falling back into a normal market, coupled with the contraction of the sub-prime mortgage market has the real estate consumer, and many homeowners in a state of fear. The various media continue to depict a very grim picture of the markets in general without distinguishing between the national market and local markets, such as the Arizona real estate market, with factors unique in the ways of population growth and investor activity. I have seen numerous articles referring to the sub-prime debacle as a global crisis. That may be taking it just a bit too far.

The truth is, there is no geopolitical significance to recent events in the U.S. real estate market and the sub-prime crisis. To rise to a level of significance, an event — economic, political, or military — must result in a decisive change in the international system, or at least, a fundamental change in the behavior of a nation. The Japanese banking crisis of the early 1990s was a geopolitically significant event. Japan, the second-largest economy in the world, changed its behavior in important ways, leaving room for China to move into the niche Japan had previously owned as the world’s export dynamo. On the other hand, the dot-com meltdown was not geopolitically significant. The U.S. economy had been expanding for about nine years, a remarkably long time, and was due for a recession. Inefficiencies had become rampant in the system, nowhere more so than in the dot-com bubble. That sector was demolished and life went on.

In contrast to real estate holdings, the dot-com companies often consisted of no real property, no real chattel, and in many cases very little intellectual property. It really was a bubble. There was virtually, (pun intended), no substance to many of the companies unsuspecting investors were dumping money into as those stocks rallied and later collapsed. There was nothing left of those companies in the aftermath because there was nothing to them when they were raising money through their publicly offered stocks. So, just like when you blew bubbles as a little kid, when the bubble popped, there was absolutely nothing left. Not so with real estate, which by definition, is real property. There is no real estate bubble! Real estate ownership in the United States continues to be coveted the world over and local markets will thrive with the Arizona Real Estate market leading the way, as the country’s leader in percent population growth, through the year 2030.

As for the sub-prime “crisis”, we have to take a look at the bigger picture of the national real estate market. To begin with, remember that mortgage delinquency problems affect only people with outstanding loans, and more than one out of three homeowners own their properties debt-free. Of those who have mortgages, approximately 20% are sub-prime. 14.5% of those are delinquent. Sub-prime loans in default make up only about 2.9% of the entire mortgage market. Now, consider that only 2/3 of homeowners have a mortgage, and the total percentage of homeowners in default on their sub-prime loans stands at around 1.9%. The remaining two-thirds of all homeowners with active mortgage prime loans that are 30 days past due or more constitute just 2.6% of all loans nationwide. In other words, among mortgages made to borrowers with good credit at application, 97.4% are continuing to be paid on time.

As for the record jumps in new foreclosure filings, again, you’ve got to look closely at the hard data. In 34 states, the rate of new foreclosures actually decreased. In most other states, the increases were minor — except in the California, Florida, Nevada, and Arizona real estate markets. These increases were attributable in part to investors walking away from condos, second homes, and rental houses they bought during the boom years.

Doug Duncan, chief economist for the Mortgage Bankers Association, says that without the foreclosure spikes in those states, “we would have seen a nationwide drop in the rate of foreclosure filings.” In Nevada, for instance, non-owner-occupied (investor) loans accounted for 32% of all serious delinquencies and new foreclosure actions. In Florida, the investor share of serious delinquencies was 25%; in Arizona, 26%; and in California, 21%. That compares with a rate of 13% for the rest of the country. This makes for some great buys for the savvy Arizona real estate investor in the area of short sales, foreclosures, and wholesale properties.

Bottom line: Those nasty foreclosure and delinquency rates you’re hearing about are for real. But they’re highly concentrated among loan types, local and regional economies, and investors who got their foot caught in the door at the end of the “boom” and are just walking away from those poorly performing properties. Most of those investors still have homes to live in, maybe more than one.

In the wake of the boom years, we now have a high inventory of homes on the market, Investors and speculators who quickly bought up homes dumped them just as quickly back on the market in hopes of a fast return. The frenzy of investors purchasing homes put pressure on inventories and drove prices up, further increasing investor activity. Then, as if all at once, many of those investors put their properties on the market, creating an imbalance in the reverse direction. With so many homes on the market, prices began to stall and then fell. Prices will continue to fall until demand chews up excess inventories.

With investors no longer a big part of housing demand, primary homeowners are slowly chipping away at the existing inventory. The Las Vegas housing market will rebound in March 2008, according to the largest and most respected appraisal firm locally. The main contributing factor to the sooner than later rebound of this southwestern city is a growing population and thriving local economy.

Arizona and Nevada are expected to lead the country in percentage population growth for the next 20-25 years. The population of Arizona is expected to approximately double during that time so we can expect a strong housing demand going forward. Normal inventory levels for Phoenix real estate are about 6-8 months. Current inventory is about 10-12 months. So, we are not far above “normal” inventories in Phoenix. There are, however, outlying cities in this large metropolis that have inventories in excess of 1 year. Queen Creek real estate inventory is the worst with approximately a 2-3 year surplus of homes on the market, mostly due to the large percentage of new homes purchased by investors and then quickly flipped back onto the resale market. Surprise and Peoria real estate markets have a 1-2 year inventory for largely the same reason. We are already seeing some Scottsdale real estate and Paradise Valley real estate prices increase in value. Billions of dollars are being poured into the local economy in the way of commercial development from the downtown area to Northeast Phoenix and Scottsdale.

The demand for Arizona homes will remain strong in years ahead as new populations create the need. The demand for housing across our great nation will remain strong as this next generation of young debutantes steps onto the home buying stage. Interest rates are still at historic lows and the lending institutions will continue to offer creative financing options. Sure, some hedge funds lost the air in their tires, but financing sub-prime loans is a high stakes game for the super rich and is not of geopolitical significance. They will find other ways to lend their billions for huge profits in the wake of this sub-prime debacle. Let’s not be gripped in the fear created by reports from all media types trying to “make news”. Let’s face it, the real numbers are not that bloody exciting. Ask yourself, is this an Arizona real estate crisis, or the perfect time to buy an affordable Arizona home? Proper timing and negotiating techniques make all the difference in the current Arizona real estate market. When choosing an Arizona realtor, trust the expertise and experience of Equity Alliance Properties.

For up to date Arizona real estate market research, contact Robert Hand at 480.206.8133 or go to [http://www.equityallianceproperties.com]

I attended Wichita State University from 1979 through 1983 majoring in Chemistry. Enlisted the U.S. Navy in June of 1983, specializing in intelligence gathering and dissemination and tactical operations. Served onboard the U.S.S. W.S. Sims FF-1059 through April of 1987 working in Electronics Warfare in the Combat Information Center. Attended the University of the State of New York, majoring in Electronics Technologies while on Active duty. After 4 years of active duty, continued service for 2 more years in the U.S. Naval Reserves through June of 1989.

With an interest in real estate since I was just a young lad, I decided to get my real estate license in 1995, prompted by the allure of investment opportunities in this fast growing city I had found myself surrounded in. For years I helped others invest in their dream homes or make smart gains in the properties they bought and sold. I also helped my colleagues who came to this country to work from overseas find a home for their families.

Arizona Real Estate and Title Companies

A title company plays a tremendous role in Real Estate transactions in Arizona when discussing buying or selling property. They are the ones in charge of all of the monies handled between the buyer, seller, Brokers, and Realtors. They are in charge of transferring the title of a home from one party to another. Title companies are the ones who put the property in your name.

A Realtors first step after getting an excepted contract in Arizona is to open escrow with the title company. The buyer and seller agree in the purchase contract who the title company is going to be. Once this is determined, it is usually the buyers Realtor who opens escrow because the buyer is the one putting up earnest money to be lost in case the contract is breached.

Opening escrow means, delivering an excepted purchase contract with the buyers earnest money to the title company. Once this is done, escrow is opened, and that is the beginning of the purchase contract.

Title companies in Arizona are the ones who receive the money from the buyer or the buyers lender to give to the seller and/or payoff the sellers lender. The seller must provide who their current mortgage is through so that the title company can pay off the balance of your loan. After the loan is paid off, and the closing costs, the seller gets what is left over which is called the sellers proceeds. However, if a the person selling has no mortgage there is nothing to pay off except closing costs.

There is paperwork that the buyer and the seller need to sign in order to successfully complete a Real Estate purchase contract. The title company organizes the paper work in an orderly fashion, and has both the buyer and the seller come to the office to sign. Once all paper work is signed by both parties, the title company delivers the paperwork to the bank that is funding the loan. The bank which the buyers lender obtained a loan for the buyer, wires the money to the title company. This is when all monies are dispersed to the appropriate party. The title company gets the money from the lender, then delivers the money to pay the Realtors, the Loan Officers (if applicable), the seller, and any other party that requires compensation for being a part of the sale. Of course, the title company takes a cut. Usually the closing costs are split between the buyer and seller depending on the terms of the contract.

A title company is the battery of the operation, the hub. With out their organization there would be too much confusion. If you do not know a good title company to use when purchasing or selling Real Estate in Arizona, please ask a qualified professional Realtor to suggest one. The title company deals with every person involved in the transaction. It is important that a title company has organization, and great communication skills. A good title company will notify the appropriate party when something may be wrong so that it may be fixed by the right person.

It is important to develop a relationship with a good title company. Once a relationship is built, you begin to know how each works, making the job a little easier. You will know the title companies phone numbers, names, fax numbers, and e-mail addresses by heart. If you are always using a different title company, it is a new set of information to learn.

Scottsdale, Arizona Real Estate Investing

There are several factors to consider when thinking about investing in Arizona Real Estate. Is this a short term or a long term investment? Is this going to be a rental property or a personal residence? Is this going to be a vacation home? Before jumping into an investment property, it may be a good idea to ask your self what type of investment is going to fit your needs.

The days of flipping houses have seem to come to a screeching halt in Arizona. A little over a year ago this was extremely common because there were too many buyers, and not enough sellers. The inventory was very slim. Now, the inventory has seemed to increase, not enough buyers and too many sellers. Obviously, when this happens prices drop.

There is no way to predict future market conditions, but now may be a good time to start purchasing property in Arizona. The sellers are giving extraordinary incentives and the interest rates are relatively low. To make an informed decision, some might think to take a look at what is happening around them.

The price of homes have been dropping, that is not a secret. When the prices of homes start dropping, this may be an indication of a market fluctuation. When the market fluctuates it is a good time to be in the right place at the right time. Many lenders have gone out of business because there is such a high foreclosure rate. It is becoming harder and harder for people with marginal credit ratings to obtain a loan. This may be an indication that the rental market is about to get stronger.

When lenders start going out of business, and the remaining lenders tighten up their criteria, not as many people can qualify to purchase a home. People have to live somewhere, so their only other option is to rent.

When investing in Arizona Real Estate, it is important to analyze the rental market of the area you may be thinking about purchasing. It is also very important to know what your payments are going to be and how much you need to put down in order to have even or positive cash flow. If you are going to purchase a home to rent out, make sure that your payments are close to what the rental rates are in the area. To find out what the rental rates are you can ask a qualified Realtor to tell you what is currently on the market for rent in the area, and what has recently rented out. Basically, you are doing a comparative market analysis on the rental market in the area you are thinking about buying. Most qualified Real Estate professionals can help you with this.

It is extremely important to find a Realtor to represent your best interests when investing in Arizona. The difference between a good Realtor and a bad Realtor could cost you thousands of dollars. Make sure your Real Estate professional is experienced, educated, and knowledgeable of the area you are thinking about buying in. Above all, make sure your agent is aggressive.

In order to get the best price possible with the current market conditions, it is imperative to start extremely low regarding an offer to purchase. Rarely is the sticker price the purchase price. A good Realtor that is representing an investor may see a home for three hundred thousand dollars, offer two hundred and fifty thousand, and have the seller pay for all of the investors closing costs. Will the seller except this contract? There is no way to know for sure. All the seller wants to know is how much money they are walking away with in most cases. If the seller will have to pay to close escrow the contract will probably not fly. It is always a great idea to find out how much the seller owes before writing an offer on any home by having your Realtor look at the tax records. This way, you know how much flexibility you have. A desperate seller with an enormous amount of equity may have some opportunity.

Make sure when you are investing in Real Estate in Arizona, you have proper representation, you do your homework with your agent, and know that there is risk involved. Like any investment, there is risk involved. There is no way to determine future market conditions. Real Estate markets are cyclical. What goes up may very well come down. It is better to have an honest Realtor that tells you the truth versus a Realtor fluffing the truth that may cost you a lot of money. If you need a good, honest, hard working aggressive Realtor to help you with any and all of your Arizona Real Estate needs, please click on the link below to visit an extremely helpful website to get you in contact with a professional Realtor in Arizona.

Nick McConnell

Executive Sales Associate for Coldwell Banker Residential Brokerage in Scottsdale, Arizona. Lived in Arizona all his life, Graduated from Northern Arizona State University and has been a Realtor ever since.

The History of Ranching in Arizona

Ranching is an important part of Arizona’s history. Due to its consistently mild climate and rolling grasslands, Arizona has attracted many ranchers over the years. However, ranching has become a long-forgotten way of life for many Arizonians and as time passes, you hear less and less about people being raised on ranches. Despite the fact that it is becoming less commonplace, ranching forms an important part of Arizonian identity. Many of the ranches found in Arizona today are guest ranches where cattle and horses are grazed. Guests at these ranches can enjoy outdoor activities like horseback riding, birding, and hiking.

Why Arizona?

Much of Arizona is arid and while it’s true that droughts have made ranching difficult for many, Arizona is a desirable ranching spot because of its great grass coverage and favorable climate. Grass protects the pastures because it allows them to hold moisture well, keeping the soil rich. Rich soil leads to further growth of grass. Grass cover also saves ranchers money because it eliminates the need for having to feed livestock by other means. However, due to the aridness of Arizona’s landscape, there is a limit to the number of livestock it can support.

The History or Stock Raising in Arizona

In around 1690, people began raising stock in Arizona. Spanish ranchers settled in the headwaters of the Santa Cruz River in the Huachuca Mountains. Around the same time, Jesuit missionaries gave the O’odham Indians livestock after they agreed to live in mission communities.

Ranching began in earnest in the 1730s around the time of the mining boom and revival of Jesuit missions. Ranching became more common in the Santa Cruz Valley as the demand for beef grew along with the population. For several years, Apache Indians had prevented ranchers from settling outside of the Santa Cruz Valley.

At the end of the American Civil War in 1865, large scale ranching began to take place in Arizona. Due to disruptions from the Civil War, cattle had overgrazed the pastures of Texas and many ranchers moved to north and west into Arizona. Cattle numbers in Arizona grew exponentially as a result. By the 1890s, there were about 1.5 million cattle in Arizona. Once a windmill that pumped groundwater into storage ponds and two transcontinental railroads were introduced, an increasing number of businessmen began investing in Arizona ranches.

The vast Arizonian countryside was converted into a large livestock ranch in a short amount of time. The climate was favorable, enabling plenty of forage to grow. However, ranchers overgrazed the pastures in a period of 20 years. After a drought took place, around 50 to 75 percent of the cattle population in southern Arizona perished. Ranchers in Arizona learned their lesson after this fiasco. While in the past they had as many as one cow per five acres, nowadays they only have around one full grown cow per 65 acres in order to protect the landscape from being degraded again. Furthermore, many ranchers ensure that the livestock only consume around 60 percent of the forage in case of drought.

How To Save Money On Your Arizona Home Owner Insurance

If you are looking for ways to save money on your Arizona home owner insurance, look no further. This article will give you tips and tricks that you can use to save a lot of money on your Arizona home owner insurance. Keep reading to uncover these great tips.

The very first thing you should do before you commit to a home insurance policy is to do plenty of shopping around. Ask family and friends; do research on the Internet and whatever else you need to do to find a good home owner insurer.

Don’t make a decision on price alone. Customer service and how they respond to a claim can make all the difference. Interview each prospective insurer and ask them questions that will help you decide on which insurer is right for you.

Before you buy a home, take into consideration how much it will cost to insure it. A newer home will have updated electrical, plumbing and should be more structurally sound than an older home. Therefore, a newer home may be cheaper to insure.

Also consider the area that you will be living in and what types of disasters occur in this area most often. If you are thinking of buying a home in a flood prone area, be prepared to pay at least $400 more on your homeowners insurance.

To save money on your Arizona home owner insurance, update your home security system. The more secure that you make your home, the more discounts you may receive on your home owner policy. Another thing to take into consideration is smoking. If you smoke, your policy will be higher because a lot of house fires are started by a smoker in the home. So not only is quitting smoking good for your health, it will save you money also.

It is also a good idea to have your auto insurance and your home owner insurance with the same company. This will give you added discounts on your policy. Staying with a particular insurance company can save you money over time also. Most insurance companies will give you a discount for being a long time customer.

Another way to save money on your Arizona home owner insurance is to raise your deductible. With most home owner insurance companies, raising your deductible to $500 will save you 12 percent. If you raise it to $1000, you may save as much as 24%. The higher your deductible, the more you save.

Keep these tips in mind when you are shopping for Arizona home owner insurance. They will help you save a ton of money!

All Rights Reserved Worldwide. Reprint Rights: This article may be freely reprinted or distributed in its entirety in any ezine, newsletter, blog or website as long as the author’s name and all website links remain intact and be included with every reproduction.

The Secrets to Success For Arizona Home Buyers

There are several steps to take when purchasing a home in Arizona. This check list, coming from an Executive Sales Associate with Coldwell Banker Residential Brokerage in Arizona, will help any person thinking about buying a home in the valley of the sun.

Your first step when purchasing a home in Arizona is to make sure to find a Real Estate Professional that is aggressive, knowledgeable, and educated. There is no requirements necessary when talking about education to become a Realtor. Anyone can become a Realtor as long as very basic guidelines are met. Would you rather have a high school drop out represent you, or a Realtor with a college degree? Ask your Realtor how much experience they have, ask to see diplomas, or even go as far as asking for letters of recommendation so that you can have physical proof that you are putting the biggest investment of your life into the right hands.

After you have chosen and trust your Realtor, your next step is to get pre-qualified for a loan. This is a very simple process. A lender of your choice or a lender that your Realtor recommends will ask you a series of questions which only takes about 10 minutes to make sure you are qualified to purchase a home. Lenders want to know your job history, your credit score, your income, and how much debt you have. As long as you have a good work history, a descent income, and your debt to income ratio’s are in good standing, you should have no problem qualifying for a home loan. If you already know a lender that you want to use Realtors are not encouraged to try and steer you away from the lender you know and trust.

It would be a good idea to make sure you are getting the best deal possible. To get the very best deal possible you must talk to more than one loan officer. Loan officers make more money if they give you a higher interest rate because the bank that is funding the loan will pay the loan officer more money. The higher the interest rate, the more money that bank makes, and the more money the loan officer makes. Many loan officers are willing to make less money by giving you a better interest rate. Some lenders will even make no money on the back end of the loan and only charge a one time up front fee which is usually one percent of the loan. Try to get a lender that will not charge you on the back end of the loan because it will cost you thousands of dollars more over a period of time.

Once you have chosen a Realtor that you trust, and have a lender you can trust, you next step is to find your home. Many different factors play into what type of home a person will choose. For many families, school districts are important. For others, location or type of home. Real Estate agents are not allowed to tell you what areas they think you should live in. You have to tell them what area you want to live in, or what school district, or what city, and they will help you find a home from this point forward. Tell your Realtor what is important to you such as a fireplace, a pool, an all tile roof, what year the home was built, how many bedrooms, bathrooms, or anything else that may be of importance to you.

After you have told your Realtor what you want, your Realtor will show you what is available in the areas you requested. At that point everyone hops in the car and goes to look at the homes you want to see. It is usually best to look at home on Saturday and Sunday because the traffic is light, and it makes it less hectic for the home owner.

Now, you have found the house you want to purchase after looking at thirty homes. You love this house and don’t want to lose it. Depending on the market conditions will determine the aggressiveness of the contract. When writing a purchase contract for a home, it is important to know how many days the home has been on the market, how much the owner of the home is going to make on the sale, and how long the owner has lived in the home. If the home has been on the market for two years, it would probably be a good idea to offer a very low price. If the home has been on the market for one day, and there were 20 people in line to see the home the day it came on the market, you may want to consider offering over list price. The sticker price is rarely the purchase price.

Depending on the home buyers financial position will determine the terms of the contract. Right now in Arizona as of 2/27/2007, it is extremely common for people to get into homes with zero down because the seller will usually pay for all of the buyers closing costs. In the purchase contract just ask the seller to pay for all of the buyers closing costs. Depending on the price of the home and the type of loan the buyer is acquiring will determine the buyers closing costs. After the buyer and seller have agreed on all terms, price, and conditions we open escrow with the title company of your choice. If you do not know of any title companies your Realtor will probably suggest one. It is now time to move into the due diligence period.

Due diligence is a fancy work for an inspection period. It is very important to get an inspection done on the home so you know what is wrong with the house. Every single house usually has a list of very minor problems. Every once in a while you will run into a major problem that will affect your decision to buy the home. You may back out of the contract at any time if you find a major problem with the home during the inspection period. After the inspection period is over, it is harder to get out of the contract. Once the seller and buyer have agreed on the terms regarding what is to be fixed and what will not be fixed, it would be a good time to start thinking about home owners insurance.

Just like finding a good lender, you want to find a good home owners insurance agent. You want to talk with several, not just one, for the same reason you want to shop a lenders rates. Talk with several insurance agents to make sure you are getting the best rate with the best coverage. Cheaper does not always mean better, however, you may be able to get the same exact coverage for cheaper if you find out what is available. If you don’t know many insurance agents, your Realtor should be able to recommend a few.

Now you have a good Realtor, a good lender, a good title company, a good home inspector / termite inspector, and a good insurance agent at this point. All you really have to do at this point is to make sure you get everything your lender needs to process your loan such as bank statements, tax records and pay stubs. Depending on the type of loan you are getting will determine the type of paperwork the lender will need from you, it seems to be always different for each buyer.

At the end of the buying process, the lender will deliver the funds to the title company, the buyer and seller need to sign all documents, and all the monies are dispersed to the appropriate parties from the lenders funds.

It is now time to move into your new home. Once the title company records the deed in your name, you can move in right away. Many people move into their home using a truck and their families help, and others hire help.

Nick McConnell, the Executive Sales Associate for Arizona Coldwell Banker Residential Brokerage, is a Realtor you can trust to make sure all of your Real Estate needs are satisfied. We are here to protect you and help you through the home buying and selling processes.

Purchasing Arizona Ranch and Farmland is a Wise Investment

The business of agriculture remains and extremely profitable one in the United States. Arizona has a thriving agricultural industry, with nine billion dollars of revenue each year. Since Arizona has a warm climate, with good irrigation, crops can be farmed year round. In northern part of the state, where it is more mountainous, cattle ranches are common. The top crops that are farmed in Arizona are lettuce, hay and cotton. Arizona also ranks second in the nation for the production of honeydew, cantaloupe, lemons, spinach, broccoli, and cauliflower. Arizona’s cattle are raised for dairy as well as beef.

Purchasing a farm or ranch in Arizona can be an excellent investment. With Arizona having only around ten thousand farms and ranches, quality ranch and farmland being offered for sale is rare.

Often, investors choose to purchase Arizona farmland, not necessarily to operate it themselves, but to hire someone else to oversee the day to day operations. This is how much of the land in the country is farmed. Individuals purchase the land, and then they either rent it out to others to farm it and then pay them rent or keep the land and hire people to work on the land for them, giving these people a portion of the sales. An investor would be wise to choose to live on their beautiful Arizona farm or ranch due to the many benefits the area has to offer. These include but are not limited to the warm climate, deeply rooted western culture, excellent hunting and other forms of recreation that are available.

Although most people like to look at property before they buy it, there are a plethora of resources on the internet for people who are trying to gather more information about purchasing farms that are for sale in Arizona. This web site was developed to do just that. Web sites such as this one have detailed information and photos of farm and ranchland that is available for purchase. The internet is a leading resource for finding land in rural areas. There are choices to search nationwide, by region or by state.

No matter what type of property you decide to purchase, whether it be a farm that raises lettuce and cotton, or a cattle ranch, it is imperative that you conduct research to determine if the property is right for you. There are many government programs that can offer grants, loans and other types of money to farm and farmland owners. This will help anyone looking to invest in farmland or a farm in Arizona, maximize their investment. Farmland can be a worthwhile investment and provide years of profit to its owners if it is properly managed.

Arizona Land – A Guide to Raising Your Family

It is a well known fact that Arizona land often records the highest and lowest temperatures in the USA due to its unique landscape which ranges from 70 feet to almost 13,000 feet. When talking about the weather in the Grand Canyon State, people often use the word “harsh”. With all this in mind, many people might be turned off by the idea of raising a family in the “harsh” conditions of the desert where temperatures often put the very best air-conditioning units to the test.

But perhaps the above view is a misguided one. Arizona is a large state with a diverse landscape, offering some very favorable living conditions in less known areas such as the southwest and mountain plateaus. In such areas the summers are picturesque and the winters are more than bearable. In fact, in these secluded areas of the state, Arizona proves itself to be fit for raising a family, and even perfect for retirement.

Arizona has a lot to offer its residents, most of all, clean air and healthy living. The environment is perfect for an array of outdoor activities that are sure to appeal to all ages and people from all walks of life. At the top of many people’s lists of recreational activities in Arizona is the hugely popular sport, golf. Activities that closely follow golf in popularity are, fishing, skiing and hiking.

For the more inquisitive minds, Arizona has a rich history which has led to a large number of museums being created, particularly those which are geared towards the younger generations, including the Tucson Children’s Museum and the Mesa South West Museum which plays host to a very realistic dinosaur exhibition, a “Hands-On Adventure Centre,” interactive exhibitions and an old-fashioned jail.

And when the children aren’t having fun, you can rest assured that they are receiving an excellent education with Arizona boasting one of the best school districts nationally.

And the best part is there are still some natural untouched parts of the Arizona landscape with beautiful and affordable properties. The South West, and mountain areas provide a unique opportunity for people wanting to buy their dream home in a dream location. With house prices in favor of buyers, this is the perfect time to buy such secluded and exclusive properties, before the big investors decide to invest their money, and drive up the current reasonable prices.

Could You Be Living the High Life in Show Low, Arizona?

Are you one of the many people interested in investing in a beautiful piece of real estate in the picturesque southwest high country? Have you been thinking about cooler land for sale Arizona north and east of the hot Phoenix valley in the White Mountains, or Colorado River Plateau? For many this temptation to look to the cooler high land for sale Arizona is preferable to the unsatisfactory living conditions you would be facing in the searing heat of the Arizona desert which is a stunning, yet unforgiving environment that is becoming more crowed by the month.

For some time now, I have been trying to open people’s eyes to the real estate opportunities in the land for sale Arizona in the higher northern and eastern mountainous areas of Arizona. I decided to write this article to dispel the many misconceptions people had about living in the high country and decided to use the small but pleasant town of Show Low as a case study.

Why did I choose to use Show Low as an example and a case study? Well, Show Low is a classic example of why living in the high country is often more beneficial and profitable than living in the harsh desert terrain. Second, Show Low’s City Council has made a commitment to proactively encourage the growth of the community while sustaining the very high standards of living current Show Low residents currently enjoy. It is also worth noting that there is no property tax in the city either.

One of the more common miss-conceptions I hear regularly is that the weather is incredibly turbulent in Arizona, with scorching temperatures in the summer, and incredible snowfall in the winter. This is not the case at all. Show Low is situated approximately 6,400 feet above sea level and as a result is 30 degrees cooler in the summer than cities like Phoenix and Tucson. The average minimum temperature is 37.5 degrees, with the highest average temperature being around 66.9 degrees. In the summer, you can expect some temperatures reaching 80 degrees during the day, and dropping to 50 at night. There is very little snowfall in the winter, and the precipitation is only around 17 inches. In fact Show Low enjoys sunshine for the vast majority of the year. As you can see, the climate and weather is more than agreeable, nothing like the scare stories you hear of “blistering heat” and massive “snow drifts”.

Another miss-conception I would like to dispel is that land for sale Arizona is too costly in Arizona. This factor would put many people off, including me. But it is a miss-conception, with real estate, property and houses in the region being very reasonable and affordable, with average house prices at around $170,000. This is very affordable when you consider the size and quality of the property you can get for this money.

The final issue I would like to address in this article is the complaint that property and towns in the high country and southwest are remote cut off areas. Whilst it is true that there is some times a little more distance to cover to get places, the cost of doing this is offset by lower living costs. Besides, places like Show Low are actually fairly accessible, and well connected. For example, Show Low is located on the Junction of the US Highway 60 and Arizona Highway 260. Show Low is also a very popular tourist destination and a hub for commerce in the region. Such things would not be possible if it were so “remote.”

Show Low is an excellent example of reasonable temperatures, reasonable living costs, and reasonable living. In addition, there are many towns like it. It strikes me as crazy why so many would choose to live in the baking heat of the desert sun when they could enjoy the fruits of living in beautiful countryside at affordable prices. I hope this short article has helped open your eyes to the opportunities available when it comes to investing in real estate in Arizona, and I hope you take a visit to this beautiful area in the near future.

Arizona Investment Property – It Can Protect Your Purchasing Power

Arizona investment property has been the source of much news in recent years. First for its rapid appreciation rate right up to the credit crisis, and then for its equally dramatic depreciation from the highs of 2006. The most amazing thing about the rise and fall is the number of people who never saw it coming. And even more astounding is the amount of “wealth” that was destroyed in such a short time period, ultimately resulting in so many people having more loan than house.

However, for those who have positioned themselves properly, the next decade will hold unprecedented opportunity to create wealth using real estate! This is no exaggeration. Never before in our nation’s history has there been a more perfect to time to take a hard look at investment property, especially Arizona investment property. I know that’s a bold statement, yet I am completely confident making it. That confidence comes from knowing that governments around the world are behaving irresponsibly and are printing money like never before in history. In addition, government has taken on debt loads never before seen in history! These two factors form nothing but a financial house of cards that is unsustainable.

Do the factors mentioned above affect you? Yes… Maybe even more than you know.

Let me explain…You have worked hard or smart and set aside money for retirement in some form of account. I would bet you that your retirement account is denominated in US dollars. Lets say you have been able to set aside $100,000 in cash. How would the government’s ability to print money impact the purchasing power of your cash? The printing of money causes the purchasing power of your cash to diminish.

For example, what kind of new car can you buy today for less than $3,000? Can a new car be bought for less than $3,000? Did you know that in 1970 $2800.00 would buy a brand new Camaro with a V8? Whereas today, a new Camaro with a V8 starts at $31,000! How is that possible? Today’s assembly lines are much more efficient and automated with less metal going into today’s vehicles. The answer is simple: Inflation.

The creation of paper dollars causes inflation which devalues the existing cash. Your cash! How much will that 100k you saved be able to purchase in the future? It will depend greatly on what you do with it today.

The second way governments take from you is taxation. How much will the tax rates be in the future with ever expanding debts owed by our country? Bigger debt requires bigger payments. Since the government does not produce and sell anything, it’s cash comes from you in the form of taxation. In the last 4 decades the US has gone from being the world’s largest creditor nation to the greatest debtor nation in history! Now is the time to protect yourself from future taxation.

Investment property can protect you from both inflation and taxation. In addition, there is the added benefit of cash flow. Places like Arizona which have been hit so hard by the change in market direction have investors and property hunters taking on investments at unbelievably low prices.

Let’s examine the effect cash flow Arizona Investment Property can have on inflation, taxation, and cash flow:

Inflation: The price of “real things” rises in an inflationary environment. Look at the price of gold, silver, copper, sugar, and cocoa to name a few. Real estate is a real thing. It’s tangible and will always have an intrinsic value because people have to live somewhere. Crops have to be grown somewhere. Real property will in general keep pace with inflation.

As the credit crisis is worked out you will see (and we are seeing now) prices stabilize and then resume a gradual or perhaps a drastic rise depending on how much inflation is put into the system by the Fed and Treasury. That doesn’t mean that property prices will not fall further; however, property should not be purchased with the sole intent of speculating on price. Investment property will produce cash flow when purchased properly. Those who have the foresight to understand that investment property in Arizona, for example, has taken a tremendous hit offering a buying opportunity at incredibly low prices… These price levels provide more opportunity for appreciation for those who choose to buy now and hold the property as a rental. With many properties selling for less than $100,000, the opportunity for the average person to purchase their first Arizona investment property, or foreigners such as our Canadian neighbors to the north to purchase their very own Arizona vacation property is at all time highs!

Taxation: Buying and holding an investment property may provide great tax advantages. Depending on how you hold or own the property you may be able to write off expenses and depreciation against other earned income from your job! Seriously, ask your accountant.

Cash flow: This is really the hidden gem of advantages. Say you have your $100,000 invested in a property in Arizona. And, that property pays you or cash flows $1000 per month to you in rental income. You have now created a 12% annual return on your invested cash! You also have the potential for appreciation! And, you earn this income in a tax advantaged way which means you keep more of what you earn! You also own the property which give you control to sell or hold the property depending on market conditions.

When is the last time you earned 12% on your cash in a mutual fund or bond?

So why Arizona investment property specifically? It seems that these arguments would apply to most any investment property, right? Perhaps, however, when investing one should look for the highest degree of possibility for a winning investment. And, of the states that have been most beat up by the trouble in the markets, Arizona offers statistical factors that are not found in places like Florida or Nevada who also suffered from the downturn.

That that point, Arizona has not had a negative year of population growth in the last 40 years! Even during the recession the population of Arizona has grown, which of course will require or demand housing.

Arizona also offers new business growth:

“Good universities in the area have provided a skilled and educated workforce, which has positioned Phoenix as a competitive force in business,” says Bill Humphrey, senior vice president and managing director of XONEX Relocation, which provides global relocation services for transferring employees.
“Phoenix is projected to see more growth, especially since the technology, green energy and healthcare/life sciences industries have started to put down roots in the area.” Humphrey says houses that were selling for $500,000 before the recession are now in the $300,000 range.

This equates to more jobs which will draw even more attention to Arizona in this economy as more and more people struggle to find employment. These people will require housing.

Further, as the saying goes, “retail follows rooftops”, meaning business will flourish where populations exist to support it. This influx of people will provide Arizona a quicker recovery and a robust economy.

When you take the facts mentioned above together with the fact that Arizona investment property prices are at their lowest levels in more than a decade, its easy to see that those who invest in Arizona property now will benefit from higher cash flows and steadier rents, greater property appreciation due to both demand and inflation, and a more robust local economy in which to operate.

All of this gives an investor an edge over other areas when considering investment property.