posted by Michelle | on Phoenix Real Estate, Real Estate Market, Real Estate Trends, Toronto Real Estate | No comments

 

I recently spoke to a Toronto realtor who is a really sweet person but who like many has gotten stuck in the media’s negative news about the Arizona real estate market and so had neglected to do his own due diligence before deciding if it was a good or bad place to invest at this time. And I know how he feels because I felt the same way a few years ago before I went to Arizona and found a strong, vibrant city with a great history in Real Estate and an exciting future as the primary retirement destination for baby boomers.  Now 2 years later I feel even more confident in the Phoenix market fundaments.

It has all the right ingredients for long term real estate success such as, strong economic fundamentals, strong job market, educated population, high numbers of immigration from all over the US and elsewhere, top retirement destination just as baby boomers start retiring, low cost of living and a terrific climate.  Everybody wants to be in the valley of the sun.  In fact I met someone the other day who lives in California yet vacations in Arizona.  I found that very interesting.

I still own properties in Canada today, specifically in the GTA and the rest of Ontario, however finding good cash flow deals there became more difficult and understanding real estate cycles we looked around North America and found Phoenix to be the best cash flow and appreciation market to invest in.  We started buying here in August of 2009.  Our properties have all been cash flowing nicely and we are now seeing solid recovery signs in the phoenix market.

 

We can hold these properties forever and with the price that we’re paying for them they pay themselves off in less than 10 years.  I can’t say the same for my Canadian properties.  In fact, the cost of a down payment in Canada, buys me an entire house, mortgage free in Arizona.  Which begs the question, where are you getting your information?  From the media?  Good luck there, considering that when the boom was booming way beyond what prices should have been, that same media was telling people to buy when a smart investor would have stopped and waited for the prices to drop again, like established and successful real estate gurus like John Burley did for instance.  We always find it interesting to hear what the media is saying because they are often weeks or months out of date.

One of my favorite graphs is this one from the New York Times which I’ve attached for you to see.  How funny isn’t it, how far behind the times they are! For instance before the boom, they were saying that the prices would fall forever, then as the market was recovering they said there was “No Recovery In Sight”, when the market was nearing the height of the boom they were telling buyers to “Get in on the Boom” and at the top of the US real estate market cycle, the New York Times was saying that “Prices To Rise Forever” right before the drastic fall that we all have witness in the US over the last few years!  Now doesn’t sound familiar?

Having been on the ground investing full time in Phoenix over the last 2 years and having built a top Real Estate Buying Team here that in addition to experienced real estate investors also includes a 25 year Real Estate Information Analyst, a Bank Chairman and the CEO of the top cross border accountant in North America, our perspective is a little different than the average person.

We research the market constantly, analyzing new properties twice a day and buying the top 50% value properties in this market.  Contrary to what you may hear in the news, the double dip houses has actually already passed in Phoenix, commercial construction has already started again, listings have fallen by more than 50%, vacancies are down and rents are edging up as we expected.

Phoenix is developing a housing shortage due to lack of construction and a continuing influx of over 100,000 new people moving here per year.  Investors who are buying with us now enjoy high cash flow, newer properties in great neighbourhoods for half of what it would cost to build these homes today. Appreciation will have to happen in order for new housing construction to be profitable once again and since there is a shortage, construction is necessary to meet the continuing demands for housing in Phoenix for instance, which is currently the size of Toronto.

By the end of 2012, the residential foreclosure wave will be over in Arizona and the recovery will be in full swing.  Personally we’re buying as much as we can in 2011 before prices rise next year.  Canadians like you are able to use our team and benefit from our experience to capitalize on this once in a lifetime opportunity where newer homes are being sold for half the cost to build.

This is unheard of in Canada and has not been seen since the great depression.  Not even the Phoenix real estate professionals have seen this before and it takes time to figure out what to do.  Because we have already learned the ropes, we are able to help other Canadians like you save time and avoid mistakes.

These are the days when great fortunes will be made by investors who understand the market cycles and buy during the trough.  Just like the old saying goes, “Buy Low, Sell High”.  If you’re goal is wealth, then in today’s case you can hold on to these forever.  They cash flow and you’re getting them for 30-70% below construction.  Wealth is created through long term investments not with fix and flips.

As you consider buying in the US, we understand the challenges you face because we have already been in your shoes.  What about taxes? What are the landlord laws? How do I get financing?  What do I buy and where? Who can I trust?  What’s a good price?   These are realistic and important questions and we thought of them all before which is why we have spent these last few years building a team of experts to ensure that our investors are keeping more money in their pockets and have a team they can rely on to ensure they get the best value for their dollar and that everything is handled accurately and hassle free.

You are able to utilize our buying group to get great properties for about 15-25% below the average foreclosure sale price today.  Furthermore, as a buying team we can also act on your behalf, here on the ground to manage the inspections, assist with closing, manage construction and property management to deliver you a cost effective, low maintenance, rent ready property.

Myself being a Canadian investing in the US, there were different tax and legal structures I had to learn and adhere to in order to maximize the dollars that stay in my pocket and my assets from liability.  You can benefit by using our expertise to structure your ownership to minimize liability and minimize taxes.  Want to make your rental income tax free?  We can help you do that as well.  Need financing?  Want to leverage your money for maximum returns?  Despite this tight lending environment in the US, we have created an exclusive US mortgage program for Canadians buying US property and the use of this leverage will increase your returns 50-100%.

Have a look at some examples of recent purchases so you can see what you’d get for different price points right now in Arizona.  Remember that the cost of construction today is $110/sq foot so what will these properties sell for or be valued at in the next 5-10 years?

Ever wish you had bought 3 or 4 properties in Canada or the US before the last boom cycle?  If you could by a newer property in Toronto or Vancouver today at $50/sq foot or for even half of what the prices are there today, how many properties would you buy?  Well this is the very opportunity we are seeing in Phoenix right now.  Its staring you straight in the face.  What are you waiting for?

We encourage you to investigate Arizona just like we did and take advantage of this once in a lifetime opportunity as it will not last forever. Personally, once I started, I realized it was the best investment move I had ever made.  Don’t you deserve long term wealth?

Rocket to Riches,
Michelle