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By: Payam Raouf
Designated Broker
7/15/24
It doesn’t matter which political party is in power, they
both are the wings of the same bird, The American Bald Eagle.
Home ownership is out of reach for most people especially
young families. No matter how fast they run they cannot catch up with their
bills.
Unless rates are back down to 4 and 5 percent, it is not
going to make a difference. But how?
Our country is more divided than ever, our military is spread out too thin, it seems we are at war with half of the world, Russia is breathing at our throat at Guantanamo Bay, Europe cannot contribute enough to NATO, Americans now owe a collective $1.13 trillion on their credit cards, banks in US have serious solvency or liquidity problems, China, Japan, Russia and England are selling US Treasury Bills by hundreds of billions of dollars, The BRICS economic bloc, which includes Brazil, Russia, India, China, and South Africa, has been challenging US global leadership in recent years, even our closest allies like Saudi Arabia and Turkey are shaking hands with Russians’ and Chinese and 60% of African counties are heavily indebted to China. We are losing our footprint all over the world. We are still the strongest economy in the world but for how much longer? What other alternatives do we have except borrowing more money? We are currently borrowing one trillion dollar every 90 days to run the government, it seems like a Ponzi scheme to me! To pay off the National Debt, we will have to devaluate the dollar or let the inflation run its course or go bankrupt.
Average rent for a 4-bedroom house in Phoenix Metro is around
$2000 to $2500 and it could fetch more if it is in a desirable area. Home
prices have gone up 4% over the last 12 months. Rents are holding steady and up
slightly by 3% at the same time.
This inflation is not going anywhere but up, no matter who
our president is, at least for a few more years if not indefinitely. What are
the other alternatives to keeping your money in the bank?
Over 30% of all billionaires in America are real estate
investors. There is more than one way to invest in Real Estate. I am only
referring to single and multi-family residential properties in Phoenix
Metro.
No one can predict the future and I remain optimistic that we can pull through this storm together. We are "The United State of America", united we can.
I am a small-scale investor and I do what I know
best. We buy low, update, rent and manage properties professionally
with our team until the right time comes to sell. We treat our clients’
properties like our own. On average our tenants stay with us for about 5
years. When they leave, with a quick makeover, it is back on the
market.
To me this is a
no-brainer. You buy it and let some else pay your mortgage to hedge
against inflation! Well, it’s not that easy. You have to team up
with an established property management company to help you navigate through
these changing times. Does big mean better, not really. You don’t want to be
lost in the process and lose control of your expenses. We are large enough to be reliable, small
enough to be responsive. Buying the right property to match up
with the right tenant is they key to our success. Keeping the costs
down while maintaining the property and keeping tenants happy are other
important factors to take into consideration when you hire a property
management company.
Four-bedroom properties with 2 baths, 2 car garages, 2000
to 2500 sq ft, less than 20 years old with no pool are in the $400,000 to
$450,000 range. They seem to be the ideal rentals over
here. They will rent for $2200 to $2500. You can find most of them
in the NW valley, Surprise, Peoria, Avondale, Goodyear, El Mirage and Glendale.
As of today 7/15/2024, there are only 109 properties with such criteria
available in the entire Maricopa County. As an investor you need to put 35%
down to cashflow.
They have built thousands of condos and apartments
everywhere you look. They are not renting for as much as they had projected.
They offer all kinds of incentives and rental concessions to lure tenants in;
they take almost anyone who can “fog the mirror”.
From my experience, tenants would rather live in a
community of single-family home with reputable school district.
I don’t see the repeat of housing crash of 2008. Our only
choice is to keep borrowing money. Inflation will soar. dollar will fall and
home prices and rents will continue to rise. I have read a few articles that we
are going to become a renter’s nation. So, join me and let’s jump on the
band wagon to success. There are many tangible assets you may consider but real
estate remains the billionaires #1 choice!
Blogging off, Payam
God Bless the USA
CALL TOLL FREE: (888)7776664
Disclaimer: This is my only personal opinion. You must do your own due diligence
before making a decision.
