Arizona has high-performing schools and under-performing schools. However Arizona is different than other states in two regards. First, Arizona has taken a unique and aggressive approach to school choice. In Arizona, residents are allowed to send their child to any school in the state on a “space available” basis. The students can move across school or even district boundaries and the budget dollars follow the students. The term used in Arizona for this is open enrollment and it has become a staple of Arizona K-12 education.
The second thing that makes Arizona schools unique is the degree to which they fund (or rather don’t fund) schools. Arizona ranks 48th out of 51 (include the District of Columbia) in terms of per pupil expenditures across the country. On a relative basis, the State of Arizona simply does not provide its schools with as much monetary resources as other states provide to their schools. And the gap is significant.
Arizona voters do tend to be fiscally conservative. The state also is an early proponent of charter schools and, as noted earlier, school choice. The fundamental question is this: does the introduction of school choice and reliance on charter schools overcome this funding gap?
A recent research study identified the top 2% and 10% of Arizona K-12 schools based on their performance on the Terra Nova test. The Terra Nova is a nationally normed test that places schools into percentile rankings versus other schools on a national basis. It is highly regarded tool and is often a better measure of school performance than are state standardized tests.
In short, Arizona schools clearly underperform the rest of the nation. State and local officials must address this issue with a particular emphasis on funding. The State has conducted an amazing experiment in school choice; the anecdotal evidence of its impact appears positive. However the lack of funding represents a clear challenge that no structural change can diminish. Arizona has a responsibility to better fund schools.
Arizona is one of the best states for real estate investment. There are a number of cities and communities around Phoenix that have increased substantially in value and are still increasing. There are communities that are geared towards high-end investment, like Scottsdale, and then there are some communities that are more affordable, like Gilbert. Investing in these more affordable communities serves a completely different purpose. For instance, Gilbert is a family friendly community. This community is built around equestrian and hiking trails, golf courses, fishing and boating. There’s a very active and growing business community.
Because Gilbert is so affordable, it’s a great community for investing, especially for people that may not have considered themselves as real estate investors. More people are buying second homes for investment than ever before. In fact, last year 40% of all home sales were for investment purposes.
In part, more people are able to afford to invest in second homes because there are so many great mortgage options. Second home buyers are able to find an affordable Gilbert home, and yet still continue to pay their first mortgage. Add in the rental income from the second property, and your mortgage may pay for itself.
The growing business climate encourages people to move to Gilbert. There are a variety of businesses expanding operations to the Gilbert area, creating a demand for rental housing. Whether you are considering a condominium or town house, or a single family home, there will be a rental market. When you factor in the appreciating values of the home, you could find yourself with an investment property that doubles in value within 10 years. Family communities like Gilbert are very desirable; if you decide to sell the property you are sure to find buyers.
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