By: sapphire Capital Investment
Want to be a new investor in Tucson real estate?
You are not the only one considering such a move. The real estate market in Southern Arizona has been booming and attracting some interest. Seasoned investors, young families and corporations are some of the parties investing heavily in the area.
Households are being enticed to Tucson because of the quality of life. The cost of living in Tucson is more affordable; lower than the national average. In addition, the frequency of outdoor activities and attractions, coupled by the all-round good weather, make it an attractive option for young families.
Tucson has been enjoying a growing job market. Companies looking to expand are being attracted to the Arizona city because of the lower cost of doing business, talented and skilled workforce and strong economy. Some of the companies currently with addresses in the city include: Raytheon, IBM, Citigroup and Oracle. The Tucson economy foretells good returns for a real estate investor.
The start of your real estate journey begins with getting all the facts and information you need, especially when dealing with a local market. You will be in need of a reputable service provider with the know-how and specialized information.
Sapphire Capital Investment is the partner you need to invest in Tucson real estate. We have worked with hundreds on investors over the years, empowering them with the knowledge they need to take advantage of property ownership in the area.
Tips in investing in Tucson
Set your investment goals
As an investor, you should prioritize this task. Are you investing to build your portfolio? Interested in taking advantage of the demand for rentals and lease out your space? Or are you setting the foundation for retirement. These are some of the critical questions that you should consider before you sink your money.
Investing is a means for you to achieve a certain goal financially. Purchasing property is not an end by itself. By understanding what you mean to achieve, you can select a property that can help you achieve them.
Deciding on the property to buy
Property comes in all shapes and sizes. This statement represents real estate in Tucson; from luxury homes to bungalows to semi-detached units. One can get overwhelmed with the options available. But you must accept the fact that not every property type is a good fit for you.
During the selection/ vetting process, there are several factors that you need to consider such as the market price, the demand for that type of property as well as capital growth. It is also recommended that you view the property from the “end-result” perspective. If you are looking to rent out your property, perceive a possible purchase from a tenant’s view. It must meet the tenant’s tastes and preferences in terms of the finishes or spaces.
Renovations and repairs
House improvements can be quite costly. Major issues can make quite the dent in your finances. Before signing that transfer document, we advise you to ask for the services of a home inspector. Their report will guide you on the condition of the property, starting from the foundation and superstructure to the appliances and fittings.
Such type of property is known as fixer-uppers. With their cheaper price, they often look like a good option. But it would be advisable to stay away from them due to the cost of renovations and repairs. Consider a new option in the market.
If you are considering leasing out property, consider a rent-ready property. This is one in good condition. Appliances and utility systems work as expected while the fixtures and fittings are damage free. State Law provides that a landlord should only offer space that is in a safe and habitable condition.
Do the calculations
This is where you bring out your calculator and use your mathematical skills. Investment is all about the returns that your property is bound to give you as the investor. You will need to consider the growth rate, different scenarios and projections among other economic and social factors.
In your calculations, take a conservative stance. Don’t be over-optimistic in projecting the income to be derived from your property. When the market performs better that your projections, this is bound to bring a smile to your face.
Other elements to be included in your calculations are: renovation and management expenses, mortgage repayments (if applicable), taxes and other fees.
Investment in real estate offers you a change to enjoy a stable, passive source of income. Provided that the market continues to perform well, property in Tucson is bound to appreciate in value. Add in the quality of life, strong economy and demand for property, more people are being lured to the city on a daily basis.
To enjoy all the benefits that come being a Tucson property owner, consult the experts at Sapphire Capital Investment. We have the experience and industry knowledge that you need to choose the right neighborhood and the right property type in Tucson. Get in touch with us today and let us handle your real estate transactions.
Tucson Real Estate