Arizona is a state rich in natural resources and abundant scenic settings. It is home to numerous educational institutions, company headquarters and a diverse culture that flock to the larger cities of Phoenix, Tucson and Tempe as well as the smaller towns like Avondale and Scottsdale. Real estate here is just as diverse as the residents of this southwestern state, which can make investing in cheap homes in Arizona a little tricky.
Start by doing some research on the Arizona region in which you want to invest. Obviously, you are going to pay a different price for a home – even a foreclosure listing – in, say, Phoenix than you will in Scottsdale. Take a close look at real estate prices and what the trends have been over the years. Home values, depending on the area, may range anywhere from the low $100,000s to the low $200,000s, with more luxury properties going up from there. For example, in the Phoenix metro area, you can score a foreclosure home for around $123,000 if you take your time to look carefully.
Spend equal time researching the demographics of the area in which you are interested. Because of its proximity to the Mexican border, Arizona does have a large Hispanic population, many of which flock to the larger cities to avail themselves to the resources available in these areas. For example, household incomes in metro Phoenix hover around the $40,000 mark and close to 20% of the population lives below the poverty line. What does this mean in terms of purchasing real estate? You are privy to lower property values that will get you a cheap house in just about any area of Phoenix. However, it almost means that you have to be wary of empty and dilapidated foreclosure properties around you that may drag down the value of your chosen property.
By comparison, in the Phoenix suburb of Chandler, where the median household income hovers around $81,000 and just 6% of the local population lives below the poverty line, home prices are considerably higher and finding an inexpensive foreclosure property is more difficult.
Don’t settle for just anything. Cheap homes and foreclosure properties don’t have to mean poor quality homes. Invest in a home inspection and ask for major issues to be addressed by the seller or the bank holding the note. Be a smart investor and look for the unseen potential in a property, and use that savvy to get a cheap home; at the same time, know when to walk away from potential problem properties.
About the Guest Author
Spending the last ten years contributing to several major magazines, online publications, top ranking websites, and blogs including foreclosure deals, John E. Miller has delivered a plethora of content for the real estate industry that is unmatched by even today’s most notable contributors.
Delivering content that is both enlightening and informative in today’s tough economic times alongside the mortgage crisis, his writing speaks volumes to those who need the information most. His work has led to the highly-rated ForeclosureDeals.com where Miller has compiled a team amazing writers who continue to provide the most unmatched real estate and foreclosure news around.
