Early in 2011 I wrote about acting now to invest in Real Estate. “We are bouncing along the bottom of the market… Invest in Real Estate now when it’s more affordable than ever to minimize your risk and increase your ROI.”1 While this is a new year, the market has not changed much in the rent vs. buy debate. Some may ask why?

According to an article in the Wall Street Journal, “home prices and mortgage rates have fallen so far that the monthly cost of owning a home is more affordable than at any point in the past 15 years and is less expensive than renting in a growing number of cities.”2 Of those cities, Phoenix is definitely on that list which has sparked debating wars among investors looking for short sales, conventional listings or even trustee auctioned homes. In fact, the article sighted Phoenix being down 40% in inventory.

With this in mind more are investing in Phoenix real estate, but might pull an investor away? Here is a list of points that may dissuade some from jumping in.

Home maintenance- An AC repair alone could be thousands of dollars.

Appreciation is low currently (1% figuring inflation)3

Managing Tenants and leases

Uncertainty in the market.

While uncertainty will always be present, investors can do many things to overcome the other points. Here are some suggestions

Have a home warranty for repairs, usually covers major things like an AC unit and service charges are usually around $50.00

Consult with local experts to find which areas will most likely retain or increase in value

Hire a professional property manager to help you generate income from your investment.

Although it is still advantageous to buy as it was a year ago, this will not last forever and may become even more difficult as inventory decreases and the number if interested investors increase. Now is the time to buy if one is able.

1-   Stratton, Nick. “Investing in Real Estate; Is It worth It?” The AZREIA Advantage (2011): 7. Print.

2-      Timiraos, Nick. “Own vs. Rent: A Growing Reason to Buy – WSJ.com.” Business News & Financial News – The Wall Street Journal – Wsj.com. 26 Nov. 2011. Web. 06 Dec. 2011. <http://online.wsj.com/article/SB10001424052970203764804577060502694077494.html>.

3-   Girsh-Boch, Mary. “Rent vs. Buy | PropertyManager.com.” Property Management News, Articles and Resources. Property Manager.com, 15 Nov. 2011. Web. 06 Dec. 2011. <http://www.propertymanager.com/2011/11/rent-vs-buy/>.