Ten years ago, most real estate investors would have shied away from an investment in a condominium. Traditional appreciation favored single-family homes; condominium appreciation tended to be a fraction of the appreciation rate of homes. However, in the last decade this trend has been reversed – condominium sales are not only steadily increasing, but in many housing markets like Arizona, they are even outpacing single-family homes.
Arizona offers strong investment potential in the condominium market because of the varied needs of the population. Condominium real estate appeals to many investors and home owners for a variety of reasons.
Condominiums are popular option with first-time home buyers that find it difficult to purchase a traditional, single-family home. But there are many people investing in condominiums that can easily afford a single-home. Aging baby-boomers are frequent buyers of luxury condominiums. They may be willing to simplify their lives in terms of space, provided they receive some other trade-off. In Arizona, that means condominiums that are clustered around immaculate golf courses, luxury living with spectacular mountain and valley views, and easy access to metropolitan conveniences.
Arizona, specifically Phoenix and Scottsdale, offers exciting urban areas. With professional sports team franchises, art museums, incredible shopping venues, concerts, and strong business growth, these cities are becoming just as popular with the urbanites as some of the other major cities – Houston, Chicago and New York. Of course, Arizona's real estate market is far more affordable than those markets, attracting record numbers of buyers.
Arizona is also unique in its potential for condominium rentals; with a steady tourist trade and an active retirement community, condominiums rarely stay empty for long. Investors can earn rental income while their condominiums increase in value at a steady pace.
Few markets have the potential for condominium affordability and appreciation as Arizona. It's a great market for first-time investors, or those that would like to dabble in the luxury investment community. You are guaranteed of a strong investment that will continue to grow and outpace many other condominium investments.
Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs.
Click here and get a free copy of The Greater Phoenix Area Housing Appreciation Report, as compiled by Arizona State University with your free subscription to his monthly ezine, Arizona Fun Facts.
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