phoenix real estate by fulton homes

Has the Real Estate Market Recovery Driven Canadian Buyers from Phoenix?

Photo courtesy of Fulton Homes

The greater Phoenix real estate market has begin to show signs of improvement after several down years in the wake of the 2009 financial crisis. An improvement in the labour market and unemployment, coupled with the boom of oil production throughout the United States has left many of the markets that were deeply affected showing signs of recovery in real estate property values.

So does this mean an end to the influx in capital from investors north of the border in Canada looking for properties south of the border? In regions such as California, Nevada, cities across the greater Phoenix region, and into Florida, buyers found the strength of the Canadian dollar, and value on American home prices to be too good to pass up. This led to countless deals on foreclosed and short sale homes as many looked for investments to hold and sell, or to vacation to in the frigid Canadian winters.

A Noticeable Decline In Real Estate Purchasing

Speaking to a Maple Ridge Real Estate agent Kris Mugridge, Partner of The Cardas Mugridge Group, says many of his buyers have noticed a decline in interest south of the border.

“There was once a point that many could get into the market and find condos and small homes from $40-$50,000, and that seems to now have passed. Many of these once troubled markets have begun to show signs of recovery and values have bounced back, making the price less attractive to get into the market.”

In real estate markets like Vancouver, BC, the average price for a single family home is in the ranks of Tokyo, Hong Kong, London and New York city, making for one of the least affordable North American markets.

“On paper, there is certainly lots of appeal in buying a property south of the border within only a few hours flight away, however, the US market doesn’t appeal to most of my clients as it maybe once had” notes Mugridge.

Why Are There Less “Snowbird” Home Buyers Now?

So what caused this shift if prices are still significantly below that of a typical Canadian market?

  1. Tax regulations make it difficult to navigate clearly. Coupled with estate planning, it can be challenging to confidently sink significant amounts of capital into a foreign market. Often it means having to find a new accountant familiar with the US tax system, which may not be easy for most to find.
  2. Health care costs. The typical snowbird purchasing a secondary property is over the age of 50. Health insurance abroad from home markets can be quite expensive, and is a cost that must be considered if one decides to make frequent trips. Speaking with one Canadian who had property in a Scottsdale RV Park, he noted he had to return home to step foot in Canada every few months to get a better deal on travel medical insurance. Not exactly a practical vacation!
  3. Maintenance costs. Managing plumbing, heating, air conditioning, landscaping, and the rest of the upkeep around one home is hard enough. Doubling it to a second home doesn’t become any easier! Foreign investors need to be cautious about working on their own properties as well, as immigration rules have heavy restrictions on what a foreigner can and cannot do while in the country.
  4. Travel time and cost. As more low-cost carriers have begun entering many markets, driving down most airfare prices, air travel still remains a significant expense for many travellers. Furthermore, as owners get older and mobility issues begin setting in, it can become all the more challenging to endure the flights that you maybe once had as a young individual!

Although it may be easy for a buyer to browse Maple Ridge MLS listings and be envious of a US Real Estate market like greater Phoenix, there are certainly more things to be concerned with than the cost of purchasing when it comes to buying that next property.

Reasons Why You Should Invest In Phoenix, AZ Real Estate

Featured photo by DPPed (Own work) [CC-BY-SA-3.0], via Wikimedia Commons

The real estate market is one of the best investment choices especially for realtors wishing to invest around Phoenix, Arizona. The real estate market collapse was indeed a blessing in disguise for Phoenix, the boomer region that has seen an upsurge in real estate profits ever since. Other than the excellent home value, many investors prefer Phoenix for many reasons. Here are some of the reasons why many people turn to Phoenix and why investing in the city is a great idea.

Snowbirds Invade Phoenix in the Winter Months

Snowbirds or retirees who prefer spending the cold winter days in warm and pleasant weather mostly choose Phoenix. This provides a great demand for properties to rent and buy, which is why you should be among those benefiting from this market. Such people look for the most prime property and are ready to pay $20,000 for homes near resorts and other luxury amenities. There are therefore pleasant returns for investors who can get anything from 9-12% annually.

A Fast Growing Population

Phoenix population is growing fast as the economy diversifies, making real estate a smart investment choice. The fact that there are great job opportunities including top institutions such as Arizona State University makes Phoenix a magnet for career people. So why not use this moment to multiply your revenue through investing in real estate to house the massive population?

Natural Resources

Phoenix, AZ has a rich real estate potential considering its wealth of natural resources that make people want to live there. The South Mountain Park and botanical gardens like Desert Garden attract new dwellers to the area every year. Investing in such an area is great as there will be plenty fun activities that residents can engage in and this is definitely a great selling point. Regular visitors prefer buying real estate to use when they are in the area and rent it out for the rest of the year.

Lots of Sun

Phoenix boasts 320 years of splendid sun in a year, making it an ideal destination for ardent golfers. People dream of setting up home in phoenix because then they can enjoy unlimited golf at world famous courses like Superstition Springs Golf Club and Arizona Baltimore Adobe. Besides golf, other sports enthusiasts like to buy real estate in the area because then they will share homes with major teams like Cardinals Football Team, Phoenix Coyotes Ice Hockey team and the Phoenix Mercury Women’s’ NBA team to mention but a few.

Phoenix is the Hot Spot for Real Estate

People are constantly looking to live in Phoenix for the great sunny weather as statistics show the area as one where real estate properties never sit empty for long. This is why every potential investor seeks property in the area rich with foreclosure properties that every investor would love.

Phoenix, AZ is ideally the real estate hot spot of Southwestern U.S but benefits certainly do not come without sheer hard work. You have to prepare and parade your property in the best possible way to attract anyone seeking to buy. A good marketing strategy, choice of location and size of property are some ingredients for absolute success in the Phoenix real estate market that every investor must consider.

arizona fast facts feature

Arizona Fast Facts

arizona fast facts info graphicThis is a great info graphic about Arizona courtesy of Maps of the World.

  • Many people think the name “Arizona” came from the Spanish phrase meaning “arid zone”.
  • Arizona is one of the “Four Corners” states of the American Southwest located directly to the south and east of California.
  • Most of Arizona is a desert, although there are colder, more mountainous regions in the northern part of the state.
  • Arizona has a great deal of national and state parks, and is well-known for its high levels of natural beauty.

Plus so much more. View the whole info graphic here.

arizona newcomer

Arizona Newcomer Information

Automotive Information:

Drivers Licenses are issued by the State of Arizona and are required for newcomers as soon as residency has taken place. Proof of and and identity is needed.(birth certificate, previous drivers license, etc.) You must also pass a vision test, and possibly a written and road test. Drivers license fees are based on the age of the applicant. Arizona drivers licenses expire at the age of 60 and each driver is required to update their eye test and photo every 12 years. Drivers 55 and older recieve a 5 year license.

Motor Vehicle Department of Arizona
1801 W. Jefferson St.
Phoenix, AZ 85007
(602) 255-0072

Scottsdale, Paradise Valley, Carefree:
15023 N. 75th St
Scottsdale, AZ

Vehicle Emissions Testing: All Cars built after 1966 must pass emissions inspection. For vehicle inspection stations call (602) 470-4646.

Vehicle Registration: You can register your vehicle at the same offices as you get your drivers license. The fee is based on the make, model and year of the car. You must provide the previous registration card, license plates and title in order to register your vehicle.

Television Guide:

Channel 3: KTVK (Independent)
Channel 5: KPHO (CBS)
Channel 8: KAET (PBS)
Channel 10: KSAZ (FOX)
Channel 12: KPNX (NBC)
Channel 15: KNXV (ABC)
Channel 21: KPAZ (RELIGIOUS)
Channel 33: KTVW (UNIVISION)
Channel 45: KUTP (UPN)
Channel 61: KASW (WB)
Channel 64: KDRX (TELEMUNDO)

Radio Guide:

89.5 KBAQ CLASSICAL
91.5 KJZZ NPR/JAZZ
92.3 KKFR POP HITS
93.3 KDKB ROCK
94.5 KOOL OLDIES
95.5 KYOT GREATEST HITS
96.9 KGLQ CLASSIC HITS (80’S)
97.9 KUPD ALTERNATIVE ROCK
98.7 KKLT ADULT CONTEMPORARY
99.9 KESZ ADULT CONTEMPORARY
100.7 KSLX CLASSIC ROCK
101.5 KZON ALTERNATIVE
102.5 KNIX COUNTRY
103.3 KWCY COUNTRY
103.9 KEDJ ALTERNATIVE
104.7 KZZP POP HITS
105.9 KHOT RHYTHM & BLUES
107.1 KVVA SPANISH
107.9 KMLE COUNTRY

State Income Tax Information:

Single and Married filing separately:
Taxable Income:
$0-$10,000 2.88%
$10,001-$25,000 3.24%
$25,001-$50,000 3.82%
$50,001-$150,000 4.74%
$150,001+ 5.10%

Married Filing Jointly/ Unmarried Head of Household:
Taxable Income:
$0-$20,000 2.88%
$20,001-$50,000 3.24%
$50,001-$100,000 3.82%
$100,001-$300,000 4.74%
$300,001+ 5.10%

Property Taxes:

Maricopa County property taxes are based on the assessed value of each home and property.

Formula: TAX=(assessed value) x (district tax rate)

For further information, contact the Maricopa County Treasurers office at (602) 506-3975

Voter Registration:

To vote in local, state and national elections you must be registered to vote 29 days prior to the election, be at least 18 years old and a resident of the United States.

Registration can be done online by printing a form out and mailing it to the Maricopa County Recorders office.