Fourth Best Real Estate Investor Location
Hey, honey, Tucson's on another list!
We keep making lists, most of them are pretty good lists to make. This particular one is about 2 years out of date. I say that because Tucson has been on investors best places to buy investment properties for a couple year. It’s typical of the media, even the real estate media, to be way behind the reality of the marketplace.
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I don’t know if you are interested in reading whats on this screen shot, if you are click on the image, it grows large enough you might even be able to read it without your glasses (probably not).
Statistics, statistics. Is it only the fact that the median sale price for the 4th quarter of 2010 was $138,000? I doubt it. But if that’s a factor, then even more so now. The last couple of months the median sale price has been around $124,000. That’s $14,000 less in the second quarter of 2011 than in the fourth quarter of 2010.
Has our population changed significantly since 4th quarter 2010? Not if you consider the normal seasonal migration of Snowbirds. We are now in the first week of our +100 degree temp days here in Tucson. We’ve flirted with them a few times in May, but now we are racking them up consistently. Today, June 16th 2011 is our 11th day over 100 degrees. Is that a reason for Investors to come to Tucson?
Tile – Stucco – Granite
Here are four great reasons why investors would want to come invest in Tucson real estate.
Tile, tile on the roof, tile on the floors. Tile lasts a very long time, most roof tile are rated at 50 years. Compare that to Shingles which can barely get 5 years in our heat and beating sunlight. No need to replace a roof for a very long time, probably longer than most investors intend on own a property.
Tile floors are cooler in the summer and easier to maintain than “Carpet” you know, carpet that has to be cleaned, and deodorized between renters, in many cases replaced. Tile floors last longer than tile roofs.
Stucco and Slump block exterior covering. While there are few brick homes around Tucson the bulk are Stucco and Slump block. These exteriors require a lot less maintenance in the desert than do traditional siding. Patching and spraying of stucco or slump block requires a lot less prep than wood or vinyl sidings. Have you ever seen vinyl siding at 110 degrees? Stucco and Slump block also keep a home’s interior cooler in summer and warmer in winter.
Granite, no not granite counter tops, decomposed granite for the front and back yard. You don’t have to mow it, you don’t have to fertilize it. You spray for weeds a couple times a year (or more than a couple) and that’s it. Add a few cactus and you don’t have to water. Thorn plants in front of windows are also a great deterrent to thieves. Why risk thorns in the butt when you can get into a home without the risk.
Tornadoes? Nope, Hurricanes? Nope, Earthquakes? Nope, thunderstorms during monsoon season are about the only threat to property from mother nature (discounting the effects of the sun).
Therefore, we have a great deal of incentives for investors in Tucson real estate. Not just the median sale price, yearly maintenance expenses are greatly reduced compared to many parts of the country.
Number 4? I doubt very much those making the list took into account the costs associated with ownership of properties. If they had, Tucson would have been first on the list, it’s first on my list.
That sounds like a pretty good list of reasons why Tucson should be a top investment location. I know my market is NOT for short-term cashflow investors, but rather for long-term equity investors.