Phoenix-area cities among best in US for buying investment properties

Jun 15, 2018, 12:01 PM | Updated: Jun 21, 2018, 2:05 pm
(AP Photo/David Zalubowski)...
(AP Photo/David Zalubowski)
(AP Photo/David Zalubowski)

PHOENIX — The Phoenix area was cited as a great place for buying investment properties, with three Valley cities among the nation’s top 10 of a personal finance company’s rankings.

Mesa was rated as the second-best market for investment properties in a study of 117 cities with populations of at least 200,000 by SmartAsset.

The East Valley city was joined by No. 5 Glendale and No. 7 Phoenix near the top of the list, which was released this week. Gilbert checked in at No. 11.

AJ Smith, vice president of content and financial education for SmartAsset, explained why the Valley did so well in the rankings.

“The five-year home value appreciation numbers were relatively high compared to the other cities that we looked at,” she told KTAR News 92.3 FM on Thursday. “The housing demand was high. Supply was low for the number of people moving into the city.”

Mesa had the 10th-lowest effective property tax rate in the study, one element that keeps longterm expense down and makes investment properties more attractive.

“It is important to think about those other ongoing costs, things like maintenance, things like property tax, things like homeowners insurance,” Smith said. “Those are costs that are going to continue year after year with your investment property.”

The rankings weighed cities’ performance in five categories: effective property tax rate, ratio of rent to median home value, housing demand, five-year home value appreciation and five-year rent cost change.

Mesa landed behind only Aurora, Colorado. The entire top 25 consisted of cities in western and southwestern states or Florida.

KTAR News 92.3 FM’s Jeremy Foster contributed to this report.

Lifetime Windows & Doors

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Musician/saxophonist Boney James performs onstage during An Evening of Jazz at Mable House Barnes A...

Arizona Jazz Fest set to hit High Street for 3 days in late October

High Street in Phoenix will be jumping to tunes come late October, when the Arizona Jazz Festival touches down for a three-day party. 
23 hours ago
(Unsplash Photo)...

Chandler police seeking suspect who lured, sexually assaulted child

Police are looking for a suspect after a child was lured away from a bus stop by a man driving a golf cart and sexually assaulted.
23 hours ago
Antonio Raeann (MCSO Mugshot)...

Glendale woman charged with murder after fatal stabbing of boyfriend

A Glendale woman was arrested on Monday after stabbing her boyfriend multiple times resulting in his death, authorities said.
23 hours ago
(Scottsdale Airport/Facebook Photo)...
SuElen Rivera

Scottsdale Airport to use $5.4M grant to improve capacity issues

Scottsdale Airport will use $5.4 million in federal grant funding to improve its efficiency and capacity, officials announced. 
23 hours ago
The grey 2004 Toyota 4-Runner has a license plate number of "S4A56B." (Peoria Police Department Pho...

Police seek help finding suspect in carjacking, shooting at Target parking lot in Peoria

Police are seeking a suspect after a man was shot and his vehicle was stolen in a Target parking lot in Peoria on Monday, authorities said.
23 hours ago
Follow @KTAR923...
Sponsored Content by Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.

Sponsored Articles

Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
Phoenix-area cities among best in US for buying investment properties