REAL ESTATE

West Valley real estate offers investment opportunity

David M. Brown
Special for The Republic | azcentral.com
  • West Valley real estate is attractive to buyers who want to live there or who want investment properties
  • The area's senior communities are attracting interest from investors

It is a good time to look west to invest in real estate, either to live in or invest in, according to a property manager and a real-estate agent.

Many houses in the West Valley's retirement communties have been remodeled and upgraded. This house recently was on the market, listed by Jack Chalupka.

"Prices are still good and have stopped climbing right now," said Ron Thornblade, with the Sun City office of Coldwell Banker Property Management Division. "Rentals are doing very well with what has happened in the past. All the people who lost their homes are renting, old and young."

Sales to investors peaked in Maricopa County in May 2011, representing close to 35 percent of total home sales that month, according to Cromford Associates.

Thornblade manages properties for many California investors and for Canadians who are buying multiple units. "They are also the ones buying because they are planning to move to Arizona, and the West Valley, in particular, when they retire," he said.

The West Valley's senior communities are attracting interest, said Jack Chalupka, a real-estate agent for Coldwell Banker Residential Brokerage, who works out of the company's Sun City Bell office. Among them: Sun City, Sun City West, Sun City Grand, Westbrook Village, Corte Bella, Ventana Lakes, Sun Village, Arizona Traditions and Vistancia.

One reason is the many amenities in the communities and nearby: recreation centers with pools, spas, workout facilities, bowling, pool tables, lawn bowling, libraries, craft and card clubs, and metal and wood shops, he said. Another attraction for Sun City and a portion of Sun City West is the relatively low tax rate.

"These folks are all on the same page, mostly retired, looking for peace, quiet, security, cleanliness, great weather, and close to some of the best medical facilities in the state," he said. "People who come to visit to get away from the cold realize this is the place to be, and sooner or later decide to purchase or rent. Pride of ownership is evident when you drive through these communities."

Chalupka said that many of the buyers have remodeled, expanded and updated their homes in the past and are looking for an attractive place to move into as they transition in the second half of their lives. They've rehabbed in the past, and are looking for homes that show similar amenities.

"The market had a reasonable upswing in the past few years, but recently it appears the market has flattened out," he said. "Some investors are now moving out of the market, making more properties available to potential homebuyers."

Chalupka said many investors prefer age-restricted adult-community homes because they were well-built and well-maintained over the years. "Many of these homes are being modified to today's tastes with new kitchens, bathrooms, room modifications or additions," Chalupka said. "Attractive homes sell quickly, making both the investor and buyer happy."

Both men recommend doing research. Drive the neighborhood and talk to the HOA before you buy, Chalupka said.

For a home you want to live in, "If you are moving from a home that is 10 years old, it might be difficult to move into a home that is 40 years old, although people do so because the home was updated or the new buyer wants to renovate it himself," Chalupka said.

For a home you want to acquire for investment and renting, Thornblade suggests upgrading and fixing everything.

And, he suggests investors purchase a home-warranty policy. As a property manager, he dislikes telling owners that the air-conditioner needs to be replaced when they don't have a warranty in place. "$600 for the annual contract is a lot cheaper than replacing a $5,000 to $6,000 unit."

He added that all homes considered for investment should be inspected before purchasing. "Pay attention to heating and cooling units, all plumbing, and yard-watering systems: These are the biggest problems we encounter as property managers."

Brown is a Valley freelancer (azwriter.com).