Phoenix, Arizona – An Unexpected Real Estate Gem

    Are you looking for a performing asset, investments that will yield a positive return? Have you thought about real estate in Phoenix, Arizona? Yes – Arizona –the Wild West has been calm for a longtime now, especially in real estate terms.  The opportunities we see all across the US are also evident in Arizona, the large desert State in the South West.  When we say Arizona, we mean the capital city Phoenix, one of the largest cities in the US with a population of 1.5 million.  There are many real estate opportunities in the city that carry a low risk and offer a respectable return.  Why Choose Phoenix?  Growth – in recent years the city is flourishing and growing in leaps and bounds.  The             economy is becoming stronger as military bases are located near the city with advanced             military electronics plants. Size – The District of Phoenix has a population of 5.5 million residents and enjoys positive     migration which influences real estate demand and boosts a healthy economy. Quality  - Phoenix is one of the most sought-after cities in the US by college graduates and     educators residents.  If you are looking for a safe investment, Phoenix is a particularly attractive proposition.  Since the immigrant population in the city is very limited and thus family size is small the city's infrastructure can easily meet the needs of its residents. In addition,Phoenix has a strict policy towards problematic tenants and takes swift action to deal with them.  Thus your investment will give you security and peace of mind. A 10% Net Return on a Solid InvestmentThe cost of land in Phoenix is negligible and building costs are significantly low for a city with a fast-growing economy, so it's not surprising that prices are going up.  Yet you can still get a significant return on your real estate asset in Phoenix and prices are expected to continue to rise considerably in the future. Quality InvestmentsBefore purchasing real estate in Phoenix, it's worth doing your homework to get to know the local market.  The recovering US economy is influencing consumer habits of Americans who now prefer more comforts over price.  There is growing interest in centrally-located real estate, near shopping malls and commercial offices.  Today's homeowners look for high-quality dwellings that provide additional services such as a doorman and designated parking spaces.  Tsurel Estates will therefore continue to invest in attractive real estate that offers more to your tenants, making them more reliable and also provide you with increased rental income.  Invest in Performing Real Estate and Enjoy Three Income Options at Once      Rental Income – you will receive monthly income from the rent which yields about 10%           per year.  This is considerably higher than the annual 3-4% return in Israel from real               estate.     Increase in Real Estate Value- real estate prices are climbing, but are still far below the           2006 peak prices.  The US economy is getting stronger with positive demographics, and         in Arizona there is a high socio-economic population and low unemployment.     Strong Currency – The dollar is becoming stronger and experts forecast that it will                   become even stronger against the shekel.  Your real estate assets are dollar prices, so             that a strong dollar works in your favor.   Already now, you are getting more rental income than from a comparable property in Israel. So, to sum up, buying real estate in the US continues to be a wise investment, especially when compared to the problematic alternatives in Israel such as bank deposits that yield zero returns or the Israeli real estate bubble. The Phoenix real estate market provides high-quality properties with peace of mind for investors who do not like taking risks. ​

Property Evaluation - How Real Estate Prices are Determined ​

     Let's Start With a True Story:I recently publicized a multi-family home of five apartments for sale. The price I stated was lower than the actual market valueand I presented the asset to an investor, offering a net annual returnof 15% from rental income, plus a return from an expected rise in valueof the home.The investor, who thought he knew a thing or two about real estateinvesting in the US and who had already purchased another assetand had seemingly been stung by a loss, replied:"Either you've been duped or you don’t really know what is the real value of the asset!"The investor checked up this asset on the famous Zillow site and saw that the asking price was significantly lower than what I had publicized.  He also saw that the asset had been sold a few months previously for an even lower price (significantly lower!).Why was he mistaken?His first mistake was in misunderstanding the market.  Instead of checking up the "zestimate" - (Zillow's estimate of the asset's worth), he just read the heading which listed the selling price...In addition, he was also mistaken as to the correct valuation of the property.Zillow provides a price estimate based on an algorithm that compares this property with other ones in the same area that have recently been sold or which are listed.  An average price per meter is then calculated and thus the estimated cost of the home is fixed.  The algorithm doesn't take into account the physical state of the asset, nor how much more capital is required for renovations to make it habitable.The More Reliable IndicatorUS real estate agents work with a more reliable guide, the CMA, or Comparable Market Analysis which compares the property for sale with similar ones in the same area which have recently been sold or are currently listed.  Adjustments are made depending on the condition of the property and the cost of any repairs or renovations that may be needed.The CMA never values the absolute price of the property, rather it proposes a minimum price (below which the seller will make a loss) and maximum one (above which the buyer will make a loss), as well as the median and average prices in the area. How Do We Know the True Cost of Renovations?Before we purchase any real estate, we hire a licensed and professional company to carry out an extensive appraisal.  We receive a 20-30 page report that provides minute details on all aspects of the asset (from the condition of the roof to leaky faucets).Do you want to find out more and hear about potential real estate opportunities at competitive prices?Do you want to see a real CMA or a Property Appraisal report?Do you want to know how the true story at the beginning of this blog ended?Send an E-mail or call Tsurel Estates.​   

Is Your Money Sleeping? How to Make the Most of your Capital

    What to do with spare capital when you can’t find a profitable investment in Israel?Is your capital gathering dust in savings plans?Do you own real estate in Israel and fear the bubble will burst? There is nothing more frustrating than seeing the capital that you accumulated through many years of hard work sitting idly and not growing. You’re not alone, many people are in the same situation as you. It’s not easy to manage assets with a secure feeling when interest rates hover around the zero mark. Many people wonder what’s the best way to manage their capital wisely. They are tempted to take risks on the stock market in order to ensure that their capital retains its worth, even though Israel’s economy has been stagnant for a long time.The Israeli real estate market has managed “so far” with great courage to absorb cash surpluses and is expanding. This is indeed a difficult dilemma for the Israeli investor and since it is so difficult to make a profit in Israel, the logical conclusion is that investors have to go abroad. American real estate has a solid base of a positive economic climate and with increasing demand for assets and residential properties.No developed economies are immune from the damage caused by zero and negative interest rates. Once again stock exchanges stand at record high levels and real estate prices have skyrocketed.  There is, however, one exception – in the very economy that caused the worldwide crash of 2008, the US real estate market prices are still low and show impressive signs of recovery. Investors from all over the world have already discovered this potential. American real estate has a solid base of a positive economic climate and with increasing demand for assets and residential properties. Some of the causes of this potential      Low unemployment – one of the clearest signs that the US economy is recovering is                that unemployment has dropped to normal levels.     Decrease in number of foreclosure properties - as a result of real estate purchase.                   People from all over the world are snapping up properties that, until recently, were                 untouchable.     Positive demographics - the US population is growing at a steady rate of 1% per year.     Rock-bottom prices – existing home prices are still considerably lower than the cost of            building new homes.  In other words, real estate demand has not yet expressed itself in          new housing starts but rather in the purchase and leasing of foreclosure assets.  To                 make it quite clear – this is a win-win situation with no chance of losing.    Expected price increase - Real estate prices have remained steady because of a glut in           foreclosure properties for sale.  As long as the pool of such properties was large, prices          remained steady.  Now this supply is drying up at a steady level and the number of                  attractive real estate bargains is decreasing.  This guarantees price increases in the very          near future.    Increase in home building starts. As mentioned above, the cost of building new homes is        significantly higher than the present cost of many existing properties.  The new                        construction will trigger an increase in the price of "old" properties.  Reminder: Apartment prices lost, on average, 60% of their net worth during the sub-prime crisis. ​

Print Your Genuine Dollar Bills – Legally!

    ​Most Israelis are salaried employees who (rightly) complain of difficulties in maintaining a high standard of living here.  Salaries are rather low, and expenses are rather high.  So what do most people do? They sit around and complain, rather than taking action to improve their situation. They simply believe that "the rich get richer, and the poor – poorer". However, we are here to tell you about those who managed to break out of the vicious circle and, with little effort, succeed in significantly improving their standard of living.  What's their secret? They were on a constant lookout for income-generating investment channels that would significantly increase their capital, as well as their monthly income. Did they have large amounts of capital?  Not necessarily. Did they have financial knowledge?  Not usually. The real estate crisis opened up a rare investment opportunity. In 2008, the American economy suffered a severe financial crisis which led to a crash in the real estate market.  In many cases, properties dropped as much as 70% in value.  As a result, many homeowners now owed more to the bank than the net worth of their property. The banks seized these properties and put them up for sale at ridiculously low prices. As a result, a flood of investors from all over the world flocked to snap up these assets.  The American real estate market has been on a recovery path since 2011, but prices are still far below the record-high levels of 2006.  This has allowed for an investment opportunity yielding a high return for a number of years.  Two investment channels        1. You can purchase a renovated and rented property and receive a monthly income                   from the tenants.       2. You can purchase a foreclosed property or from receivership, upgrade it so that its                  value appreciates and then put it on the market for sale to American residents. The first type of investment is recommended if you do not have a large sum available for investing and you need a fixed monthly income from rental.  In certain areas of the US, this can be as large as a 10% annual return.  (When you compute this with a modest rise in the property value, the average annual return over a 5-7 year period will be between 15-20%).  The minimum amount of capital required to buy a reasonable asset is $50,000.  The second type of investment is recommended if you have more than $100,000 available and do not require a regular monthly income from your investment.  You can reach annual returns of 20-30% and sometimes even more.    Reasons why Israelis are afraid to invest      1. I don't have an initial sum of capital to invest.     2. I am frightened to invest in a faraway place where I have no control over the asset.     3. I have heard of shady characters involved in investment schemes who have caused                  many investors to lose all their money.     4. How can I know that the annual yield I am promised will actually be realized? It's OK to be 'frightened' or 'put off' if your fears are logical and controlled.  However, in some cases these feelings are exaggerated and prevent effective action. We can provide appropriate answers to all the above and present our impressive success stories to allay your fears.        1. Despite popular thinking, you really can create equity (Print your Dollar Bills … Legally).           You can do this by 'leveraging' ownership of an asset or by using capital sitting in a                   'Keren Hishtalmut' tax-free savings plan or in a pension plan that is losing its value.      2. In today's world, there are many efficient and cheap methods to overcome your fear of          lack of control from afar, even if you are not up-to-date with the latest technology.  Ask          the seller to see on-line pictures of the asset, names of the tenants and their phone                numbers.  Don’t be hesitant to hesitate to call and check it out.  If you can’t speak the              language,  just ask a friend or acquaintance to make the call for you.     3. There are a number of simple ways in which you can identify shady businessmen and             sniff out dubious transactions which won’t yield a return – heartache and financial           loss.  Ask the seller to tell you about some of his success stories on behalf of clients, including          names and phone details of investors.  Then phone them and hear from them first-hand         about their experience with the seller.      4. Check-up databases and other tools that will let you know, with a high level of certainty,         the expected yield on certain assets.  (Ask the seller to show you these online tools                   which will provide information on the specific assets and on other properties in the                  vicinity).  It’s important to use an honest broker who is knowledgeable and has experience in successful real estate transactions.  It’s worth spending time and effort to look for such a person in order to steer clear of bad deals and unnecessary heartache.  You need look no further than Yossi Tsurel.    The writer has been dealing in real estate investments in the US since 2011. He is the owner of the American real estate company CYT LLC, which operates in Arizona and Michigan.  

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