You don’t have to go very far to read about the great opportunities with Arizona investment property.  The significant correction to property values over the past few years has paved the way to amazing deals on real estate.  Also, don’t think that you are the only one out there looking for the best deals on real estate.  There are many others…. In a recent article (January 15, 2011) by Marty Hope of the Calgary Herald, there is evidence that many others are attracted to the Arizona real estate market.

By far the most popular with Calgarians looking for investment and retirement opportunities, the Phoenix market is still struggling some five years or so after peaking, says Tom Burk, president of CanAm Properties.

“The market there is slow at about 60 per cent of peak values, but there are also signs it might be stabilizing,” he says.

There are many diverse markets in Arizona. Depending on one’s sensitivity to ground travel times, population density and type of community, Arizona offers plenty that is of interest to Canadians, he says.

As we move forward into 2011, we are going to see more confidence from Arizona investment property buyers.  This will make buying property more competitive.  Although there are many opportunities, the great deals will go to the investor ready to pull the trigger.

Get educated and be ready to act when that great deal presents itself.  Learn how Clear Vision Investment Group can help you make an educated decision to purchase Arizona investment property.

With a high level of economic uncertainty, a record number of homeowners going through foreclosure, and tight credit standards, there has been a shift from the home buying mentality to one that favors renting.  Rental prices have jumped over 11% across the US (national average of $1,181 in January 2010 to $1,319 in December 2010).  At the same time, prices of homes have fallen just under 10% throughout that same time period.  Arizona had a 2% increase in rental prices during 2010 and a 18% decrease in the median home price.  These trends present many opportunities available for those looking for cash flow Arizona investment property.

Graphs provided by Hotpads.com

You can take advantage of these trends by educating yourself on the different ways to get involved with purchasing  Arizona investment property.  Learn about some of the ways you can get involved with Clear Vision Investment Group.

The most common confusion in the world of investing is that of price and value. Almost every time I speak with an investor the first question is, “do you think will prices fall further?” and I admit that price matters.

However, an investor in more concerned with value… There is a difference between price and value and how they each impact an investment. Since this website is all about Arizona investment properties, lets talk about the property asset class.

I ask you, what is your house worth? Really, what is your house worth in terms of dollars? 100k, 400k, 800k, or 1mm… I say you’re wrong whatever number you picked! The dollar price of your home or any property for that matter can never be exact.

The real answer to the question is this: Your home is only worth what someone else is willing to pay. Its just that simple. In a down market, other people won’t pay you as much so that house that appraised for 1mm is now really only worth 600k perhaps to someone with cash and ready to buy.

So where does the value in a home lie? For an investor, the value lies in the equity or cash flow that property can provide. That’s it.

All markets fluctuate… the investor knows to watch prices for opportunities to sell or pull money out of a property, and then continues to watch prices for opportunities to buy cash flow.

For example, lets say you’re a smart person and you understand that markets will fluctuate. You see prices rise from 01 – 07 and in some cases double and you realize, hey… this is not sustainable!

If your house was paid for or you had a lot of equity built up you can do some really creative things with the equity or value of your home because of the high price. Just to keep it simple, lets say your home was paid for… so in 07 you borrow out 50% of your equity because you know that home prices are inflated and when they collapse your equity will too.

If that house was worth 400k, you would now have 200k to play with… So you wait, you put the money in a high yield account and earn interest while you wait for the market to correct. You also use the borrowed money to make the payments on the loan while it sits idle.

Then sure enough, the real estate market crashes! And your equity crashes right along with it. If you are worried about your home’s price thinking that is wealth, you are screwed! you just lost 50% of that. But, so did everyone else.

Because you had the foresight to pull out that liquidity when prices were high, you now have a golden opportunity. With that 200k, you now scoop up three condos at 50k each, which you can rent for 700 per month, you keep the remaining cash in the high yield account and save it for repairs.

Your 200k loan costs you about 1300 dollars per month, and your condos generate an average of 2100 per month before expenses. So you net about 800 per month in profit on the deal!

Now I ask you… Does it matter that your primary residence lost 50% of it’s equity?

You now own 4 properties, 3 of which produce cash flow which pays your mortgage and provides a strong profit. So again, how much do you care about price now? would you rather have your equity subject to market conditions or would you rather put it to work for you and multiply your real wealth which can be measured by the cash flow you create.

You see cash flow investments work for you and they pay you. Your equity locked up in a home is at risk.

But, I always though I should own my home outright you cry… and I say you still do. Because if you wanted to, you now have other assets that you could sell to pay off your mortgage. Its just that now, those assets created by your equity are not subject to or limited by the price of you home.

Arizona investment property can help provide you that cash flow.

The Canadian dollar at or near parity with the U.S. dollar can mean good and bad things for Canadians and Canadian companies.  Industries (such as forestry, mining, auto, and a large portion of manufacturing) that focus heavily on exports typically price their products in U.S. dollars, so that they can be exported to other markets.  With the falling value of the U.S. dollar, these products are now more expensive impacting the demand.  This in turn could hurt the jobs market, since companies would need to scale back production to meet the lower demand.

On a positive note, parity between the two currencies can provide opportunities for Canadians buying Arizona investment property.  With the Canadian dollar having more purchasing power in the U.S. and the dramatic drop in home prices over the past few years, the timing is ideal for creating a portfolio of cash flow real estate.  A recent article published on TheStar.com (a website operated by the Toronto Star newspaper) discussed some of the pros and cons of the Canadian dollar in relation to its value against the U.S. dollar.  Helmut Pastrick, chief economist for Central 1 Credit Union (the umbrella organization for the credit union system in the provinces of BC and Ontario), had this to say about Canadians purchasing real estate in the U.S…….

U.S. real estate looks attractive. For those Canadians who have long thought about buying a vacation home in Florida or Arizona now seems to be a once-in-a lifetime buying opportunity. The loonie is high and real estate prices are bargain-basement following the worst housing collapse in decades. A U.S. vacation home has rarely been cheaper.

But real estate is a long–term investment with added complexity for foreign owners and should not be undertaken lightly. Potential purchasers need to consider taxation, financing, and insurance matters. The purchase of U.S. real estate has to make sense on many fronts and not only on currency considerations.

Not only are there great opportunities to purchase vacation homes, there are also many profitable opportunities with Arizona investment property.  It is important to do your due diligence and align yourself with a company that knows the Arizona real estate market.  Learn how Clear Vision Investment Group can be a valuable resource when choosing to purchase cash flow Arizona investment property.

Arizona Canandians is proud to join the internet family!

We are an Arizona brokerage and this site has been constructed to provide turn key property buying services to Canadians looking to purchase property in the Arizona real estate market. We are looking forward to assisting you and facilitating a smooth home purchase here in the “Valley of the Sun”.

Further, we are also highly involved in the Arizona investment properties markets. If you you are an investor you owe it to yourself to take a look… The current market discounts are tremendous!