If you’re considering buying land as an investment, don’t overlook the Tucson metro area and Southern Arizona. It can be easy to miss the trends happening in Tuscon if you’re interested in Arizona as a possible investment location, but you’ll find some great values if you take a closer look.
Property values are still inexpensive after a downturn in 2012, but property values have increased year-over-year for every year since then. Land value continues to grow due to the expanding population of Southern Arizona and the attractive locations available for a comparatively low cost. The city’s population is not only growing — it is also diverse with a variety of different demographic groups looking to buy or rent. This diversity of population means the city’s real estate economy isn’t tied to just one sector of the population.
Still not convinced? Here are a few more reasons to invest in Tucson real estate:
1. Diverse seasonal markets
If you are interested in rental properties, the Tucson area has a selection of different seasonal markets looking to rent. The University of Arizona is the second-largest employer in Tucson, which not only means seasonal student rentals but a wide variety of educational professionals. The Tucson area is also home to Davis-Monthan Air Force Base, which brings in another healthy rental market. Finally, the Tucson area is a haven for many “snowbirds,” bringing all kinds of rental opportunities from condos to cottages. The diversity of different groups creates more stability and a range of different investment opportunities.
2. Economic and population growth
Partly because of the climate and partly because of opportunities offered by the university and the businesses listed above, the state of Arizona and the Tucson area are both growing in population as people move in from all over the country. This growth, coupled with the seasonal economy, has helped the Tucson area grow at a slow, but steady, pace over the last few years. This slow but steady growth means investment property is likely to appreciate for the foreseeable future.
3. Taxes and return on investment
Compared to many other states and metro areas, the taxes in the Tucson area are lower. When combined with real estate prices that in many cases are still lower than the national average and lower than they were a decade ago, these factors make an investment in real estate in Tucson an attractive idea.
Factors to Consider When Buying Tucson Land
Buying land in Tucson is a good investment. However, you need to be sure that you don’t choose just any land. When researching Tucson land, consider the location and the corresponding factors of that location such as crime rate, taxes, public utilities, property zoning, and more.
If you intend to build, analyze the neighborhood. Properties can be located near the city or college or be on the edges of the suburbs. Depending on what you want for the land, you need to know where you want the land to be located. Every neighborhood has its own personality and quality.
Always check the crime rate, either via the local police department or by visiting crimereports.com. Naturally, if you build, you want to be sure that you’re in a safe neighborhood. Check the statistics for the different types of crimes from serious to petty. If you’re able, take the time to visit the land and speak to people who live in the area.
While Tucson’s property tax rate is lower than other cities, be sure to do your research to find out what the property taxes are for the area where your land is located. An overly high property tax can cut into your investment returns. The local assessment office can provide tax information from their files.
Check the availability of public utilities to the land such as water, sewer, electric, gas, and phone. While land can be used for other things rather than building, most uses for land include building. Land value increases based on its usability. Therefore, if the property doesn’t have access to utilities, the value may drop in marketability and value.
Call the local planning and zoning department to find out the zoning classification for the land. In most cases, it could be classified as residential, mixed-use, commercial, industrial, or agricultural. The zoning classification may give you more ideas of what the land could be used for in the future.
Tucson land can be one of the best investments that you make. Whether you choose to build on it or not, it’s a valuable resource because land is limited.
If you’re looking into purchasing land in Tucson, reach out to me, Rick Sack. I can answer all your questions and help you look for the land that fits your goals. Call today at 520.918.5477