If you are not comfortable investing in Industrial, Retail or Office buildings and yet, your tired of competing with all the other real estate investors, with the limited inventory of investment homes on the market, but you like to invest in residential properties, maybe you should look at Multifamily housing ( multifamily being 5 units or more) for your real estate investments.
Unlike the dwindling supply on homes for sale in the valley, the number of units available for sale for multifamily properties in the metro area has risen 0.2% over the past year.
In terms of price, the highest median sale price in the Phoenix metro ares over the past three years, which was $52,141, was set in April 2009. In comparison, the current median sale price is down by 49.4%. While the current price is 6.6% higher than the three-year-low set in June 2011. Prices for Multifamily properties in the Phoenix metro area have decreased 2.3% over the past year.
By contrast, redidentual real estate agents I know tell me, the single family housing inventories 22 days in the east valley and prices have increased 26% from a year ago.
So the question is, will the Multifamily housing market in the next two years follow the same path as the single family housing market has, and if so what are you going to do about it?
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.