Monday, May 26, 2014

More people with 700 plus FICO Score are renting than ever before!

Arizona Property Management & Investments
(888) 777 6664

Payam Raouf
Designated Broker
Arizona property management & Investments


More people with 700 plus FICO Score are renting than ever before!

In the past three months I have seen more applicants with 700 plus FICO credit score,  good jobs and clean records applying to rent our homes than I have ever seen before. The  #1 concern when you asked them why is,  uncertainty in the market, their jobs and I agree, it is cheaper to rent than to buy these days. 

Most buyers in the market these days are either first time home buyers or are the ones who are re-qualifying to purchase a home after a bankruptcy, foreclosure or a short sell with a small down payment using FHA or VA products. 

Many of the homes for sale on the market these days- in the $150,000 to $250,000 range- are previously rental homes most of which are very basic with minimal upgrades.

Many landlords have carried these homes for the past seven years have ran out of funds and can no longer keep up with the cost of maintenance and owning a rental property. As the result, they might use their last financial resource, maxing out their credit cards to apply a fresh coat of paint on the walls and possibly put down a cheap carpet hoping they'll sell it before they go back under the water again.  Home prices in most areas have fallen nearly 10% since the height of the market in mid 2012.

There does not go one day that we do not receive several requests from such landlords to put their homes back on the market for rent as soon as possible.

Well, thanks God the rental inventory is still low as so many landlords have put their homes up for sale. It will not be long before that is going to change as most of these homes are now coming back on the market as rentals again.

My suggestions:

If you are in the market to buy, either wait till the dust settles, unless you find a gem out there that is worth owning, or keep renting till you come across the one that is worth signing you name to.

If you are a landlord and have your house on the market for sale, either price it under the market if you can afford it and exit NOW or put it back on the market for rent IMMEDIATELY before the rental market is saturated again.

If you are a REAL investor, there are good opportunities out there to invest in. ! A lot of these landlords are desperate and all they want is to get out from under their obligations.  So, they are not looking for making a dime except to save their credit and stop the bleeding. So many of them walk into my office every week asking if we would buy their homes with a good tenant in place at substantially  below the current market value. We have been referring them to our investors as they come along.

In my humble opinion, this market is NOT going to see another substantial increase in prices for another 4 to 5 years. The whole world economy is going through transition and the news on the street is that things are going to get worse before they get better.

Obviously, there are always good deals out there and in the long run adjusted to inflation ( what your money can buy) owning a house may be a good investment. There are times that I heard someones daughter wants to paint her room pink and the landlord does not allow them. That in my opinion is a good reason to buy  a home if you ask me.

We buy, sell, lease and manage properties valley wide. Our rental policy standards are very high and as the result we have some of the best tenants in the valley. Over 70% of our tenants have been with us for more than 3 years and 95% of them renew their lessees every year unless they are moving out of the area or buying a house.

We offer ac complete package when it comes to investing in real estate utilizing Global Real Estate Investment, ( http://goglobalrealestate.com ) to market for sale and purchases, Arizona Property Management & Investments, ( http://azezrentals.com ) and Las Vegas Property Management and Investments ( http://timetorentvegas.com ) to keep our rentals occupied with quality tenants and BEST of it yet, we now offer full maintenance and home improvement services throughout the valley at affordable rates through Handyman Daily, ( https://handymandaily.com ) to keep our properties maintained , rent ready and marketable at all times.

Please let us know how we can be of any assistance by calling us  at (888) 777-6664 or