Sunday, July 25, 2021

How is the rental market in Arizona? There is a silver lining in the market, take advantage of it.

By Payam Raouf
Owner/Designated Broker


IF IT IS MEANT TO BE, IT’S UP TO ME. JUST DO IT.

 

There is no excuse for not making money hand over fist these days in real estate. You listened to all naysayers on Youtube and now you are on this page!

 

Welcome! Since 2008, when I first started this blog, and 120,000 readers later, I have been able to predict what is coming next at least 6 months in advance. 


Except this time it is a no brainer. Yes, Yes, Yes, and Yes. There are some indicators that the market is going to make a short term ADJUSTMENT or at least go sideways for a very short time ( The silver lining in the market you have been waiting for) until everyone gets used to the NEW NORMAL.

 

Ok, let’s see: How come I see on most of rental applications the incomes have almost doubled in the last 10 years?

 

Remember a time not too long ago in 2011 when you could buy a house for 150K in Phoenix Metro? Now, it’s practically $400K. Imagine if this house becomes $800K in 10 years’ time. What’s wrong with that?! Then, you were making $3,000 a month. Now you are making $6,000 and in 10 more years maybe $12,000? Hyperinflexion is here to stay.


An older friend of mine said he used to own a house in Hollywood Hills that he paid $25,000 for 50 years ago and now it’s well over $2 million. Ask your grandparents, they’ll tell you.

 

In the last 5000 years rates have never been so low!!! Home prices are off the chart. It seems as if banks don’t care about the appraisal anymore. Then why should you?

 

Rents have gone up so high. I couldn’t believe when I heard a landlord asked us to raise the rent $1,000 a month, the tenant said, they would do $750 if the landlord agrees to renew it for two more years!!! An eighty year old man asked if we could only raise his rent $250 a month or he has to move in with the kids, a great tenant and a greeat Landlord, they agreed on $125. Every renter knows what I am talking about and seem to have no problem with the substantial rent increases. 

 

Either buy or rent, you have to roll with the punches. Make lemonade out of lemons as they say. Get up and go to work. Try to catch the train at the next station and if you are thinking the train is backing up to get you, dream on. Home prices are NOT going down like they did in 2010.

 

Another thing I am noticing on rental applications are more and more people are going into business for themselves, having a 9-5 job for the benefits and driving Uber or streaming videos on the side. Almost the whole country is back on selling something. How many calls do you get a day or are you making yourself to buy or sell something? Who are the losers? We all know. If ALL you are counting on is waiting for the stimulus check and government handouts to arrive stay where you are, this is a blog is not for you. Yes, There are some people that need the stimulus money like some elderly, single parents, sick and handicap to make the ends meet, the rest are free loaders if you ask me. Some don’t deny it either. “It’s free money and the landlord can wait for his rent” one tenant applying for rental assistance told me to my face in my office. He lived in a gated community in Scottsdale, drove a $125,000 BMW and got in excess of $20,000 in rental assistance. He has gone to lives in Newport Beach. 

 

Listen folks, I could have, should have, would have doesn’t work and never did. Set your goal to become a homeowner. Don’t let the institutional investors scare you off. Take advantage of the times. There is a silver lining in the market. It is short lived. JUST DO IT, Go house hunting today. Because, IF IT IS MEANT TO BE, IT’S UP TO ME. 


And if you are a real estate investor, you already doing it. Best wishes to you all. 


Please do your own due diligent. I don't have a crystal ball. Please leave your comments below. 


Call For a Free Property Management Quote: 888-777-6664


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