Over the past few years, the real estate market has gone through a number of changes owing to alternating market scenarios and changes in consumer buying patterns. One element that has had a huge impact on the real estate industry is actually something related to the hospitality industry. Particularly, the concept of homestays and holiday homes. Traditionally, when people wanted to go on a vacation, they would usually turn to hotels and establishments to take care of their stay. However, the way people vacation has gone through a number of changes, and now people all over the world are choosing to stay in independent residences to be able to have a more ‘authentic’ experience.
Airbnb, in particular, is one site that has played a big role in this. While the concept of homestays in by no means new, finding these homestays has become significantly easier. This has significantly opened up the market for those who do want to put up a property for holiday goers and who want to make a good amount from the rent of these spaces.
Investment properties have also taken on a new form as a result of this with people now looking to buy properties with the sole purpose of putting it up on a site like Airbnb. Buying a property in a popular vacation spot and putting it up on the market is now incredibly profitable, and people can expect to make a considerable amount of passive income from this simple form of investment.
Finding The Right Location
When it comes to real estate, the location makes all the difference. When it comes to holiday homes, in particular, finding the best location that attracts the most amount of tourists is always important. At the same time, you don’t want to spend an exorbitant rate on properties just because of the surge of people in the area. One location that has been gaining an incredible amount of attention as a holiday spot and a place where real estate prices are still comparatively lower is Scottsdale, Arizona.
Arizona currently stands as one of the best states for those who are looking to invest in this kind of property. Real estate in this state is currently at a reasonable rate, which means that one can easily get a good home without having to spend an overpriced rate. The current trends within the state of Arizona, particularly in Scottsdale have made this a prime location for those who are looking for a place to relax and have a good time.
As it currently stands, the median property price in Scottsdale is around $486,600. For those who are looking to put up their homes on Airbnb, a solid $2,712 can be expected on a monthly basis when averaged throughout the year, with in season prices (October – March) netting even higher. Hitting the highest in March (over $5,000) between spring training and March Madness driving deman. The occupancy rate of the city is also incredibly high when it comes to holiday homes with spaces here enjoying a good 55% occupancy rate all year round.
Benefits Of Investing In Scottsdale, AZ
There are several reasons why people are flocking to Scottsdale to invest in properties, specifically for the purpose of putting it up on a site like Airbnb. Being aware of these can help you make your decision as to whether you should invest in a home in this city.
1. Profitability Is High
When looking at making any kind of investment, you always want something that gives you a good amount of profitability, which is why investing in real estate is always considered to be a good option. When investing in residential real estate, one always has the option of reselling it in the future. Since real estate prices only increase with time, one is guaranteed to make a profit on this kind of investment.
When looking at a property solely with the purpose of putting it up on Airbnb, the amount that you can get from this significantly increases. The goal of any kind of rental property is always to earn a certain amount of return on it, and for those investing in properties in Scottsdale, the return is incredibly high.
2. High Appreciation Rate
The appreciation rate of a property is one of the main reasons why people tend to invest in real estate. Over time, the property that you buy should ideally go up in value, making it viable for you to resell it and earn a profit. This is also a sign that the area that you have bought your property is in demand and booming.
As it currently stands, Scottsdale homes have an incredibly high appreciation rate. Over the past year, the appreciation rate for Scottsdale properties is at around 7.85%. The rate that this city exhibited is almost eighty-two percent more than most cities within the United States.
3. Higher Demand
When buying a property for the sole purpose of putting it up as a holiday home, you should always look to get a property in a place that has high demand and which has people visiting them all year-round. Over the past few years, the tourism industry in the city has increased drastically, with more and more people coming here and staying in Scottsdale condos over hotels and resorts.
The city is also experiencing an increase in demand because of how close it is to vast natural landscapes and the city of Phoenix as well. Holiday goers who want to visit the state are choosing to live in Scottsdale because of the natural beauty around, and because of the fact that it isn’t as expensive as some of the bigger cities in the state.
4. Clearer Airbnb Regulations
When putting up a home on Airbnb, one has to usually adhere to certain regulations as presented by the site. These can vary from place to place, with some locations having to adhere to stricter regulations as compared to others. The regulations that have been set in place for Scottsdale condos and homes are relatively straightforward and clear, which means that one can easily adhere to them without having to worry. According to state law, rental holiday homes can be given to guests for a maximum of thirty days to be deemed as ‘guests’. There are several other nuances to the law that one should go over if they are looking to buy a home in the city of Scottsdale.
Finding The Right Real Estate Agency
Whether you are on the lookout for Scottsdale homes, condos or just about any other kind of Scottsdale Properties, seeking the help of a well-reputed real estate agency is always important. A good real estate agent is usually well equipped with multiple homes to show you the moment you start looking at the market and can give you a good idea of the kind of properties that you can expect within your budget. While there are numerous real estate agencies in the city, The Kay-Grant Group is one of the most well-reputed real estate agencies that you can turn to.
The Kay-Grant Group was founded by Geoff & Andrea Lilienfeld who were two individuals who previously had successful careers in the corporate sector. Along with their impressive employee list, the two have made the company one of the most successful real estate agencies in Scottsdale and Phoenix.