Basics of Investing

Archive for May, 2008

Question: Is Phoenix Arizona Real estate a good buy at the moment?

Would you recommend the city as a good investment city? Are multi unit apartment buildings better than commercial buildings?

Answer: Phoenix is potentially a nice contrarian idea, but I suspect your timing is a bit early. Phoenix was tremendously overbuilt, much like Las Vegas and southern Florida. You need to see signs that the new space is being absorbed and that the market is stabilizing. A few things to look for:

- Are foreclosure sales stopping or at least slowing
- Mortgage delinquency rates
- Have occupancy rates on commercial properties stabilized?
- Is there a lot of sublet space available?
- Have rents stabilized or started to rise?

Apartments might be the first market to turn. They can do reasonably well in a tough real estate market because people can’t get financing to buy, but still need a place to live.

Nice Cashflow Property – Phoenix Real Estate Investment