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Old 10-17-2010, 01:00 PM
 
Location: Casa Grande, AZ (May 08)
1,707 posts, read 4,339,621 times
Reputation: 1449

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I will be doing a seperate post - but contrary to some posts in this (in my opinion way too long) thread, according to ARMLS (www.armls.com) the regionwide median sales price for September 2010 actually went UP! Not a lot from 119,000 to 119,500, but still UP. Yes, this is down about 10% from the earlier in the year high of 130,000 (which coincidentally is Sept 09 median also). The Average price is down this month about 3% and just over 10% overall so far from the earlier highs. These numbers are despite a SIGNIFICANT drop in the number of sales (from 7300 sales in August down to 6700 in September and well off the 9000 per month earlier in the yeat).

Another factoid is that the median ASKING price for September is basically flat (130,000 from 129,500 in) from August and the average asking price is actually UP - these both had been on a downward trend earlier in the year. The number of new listings is also DOWN this last month.

In PINAL county both the median and average sold prices in September went UP! Median was 92,000 in August and 97,000 in Sept, and average in August was 104,300 and 107,300 in September. Again, these gains are DESPITE a drop in total sales numbers from 751 to 691 and down from 900 earlier in the year.

My take continues to be (similar to AZRitchey and others) that we are bouncing along a bottom. We will have ups and downs but the available housing mix is changing now (the smaller starter type places are getting harder to find in decent shape) and every month that goes by gives those that ARE paying their mortgages a little more breathing room. Just my view....

 
Old 10-17-2010, 01:17 PM
 
660 posts, read 1,397,173 times
Reputation: 289
Quote:
Originally Posted by Zippyman View Post
This is AZ, not NY - we don't do welfare...

FWIW, based on my experiences, you were and are surrounded by rentals whether you know it or not, even in expensive neighborhoods.

Also, be really careful with PM investments - some are taxed at the "collectables" tax rate, not the "capital gains" rate.

And it's going to be much harder to fly "under the radar" using Ebay or what not, since they report all of your sales to the IRS and send you a 1099 now.
Wow, great info (tried to rep you but I'm told to spread some around)!

That is one of the things I love about AZ, that it's not NY or IL.

I totally agree that even in the primo areas there seem to be rentals too. I'm hoping and assuming that those renting in the better areas are a higher class of people as well.

I'm done with PM investments myself. The stories I could tell would fill a novel the size of War and Peace. Then again, I don't want to give anyone ideas so I'll just keep it to myself.
 
Old 10-17-2010, 02:36 PM
 
Location: Sonoran Desert
39,075 posts, read 51,199,205 times
Reputation: 28314
Quote:
Originally Posted by ladysovereign View Post

My other concern (and this may not be a problem for someone else) is the number of Investors that are swooping in and buying up the low cost properties for rentals. The link to that article above this post confirms what I had a feeling would happen.
Wow! How could those investors be so dumb? And using cash no less... I guess they don't get their investment advice from a C-D forum.
 
Old 10-17-2010, 02:50 PM
 
Location: Anchored in Phoenix
1,942 posts, read 4,568,295 times
Reputation: 1784
Gold that I buy, I pay 4% broker fee. Gold that I sell, I get 1.15% above the spot price. This is in Los Angeles. In Phoenix you have to shop around. I used to buy at a small dealer in Phoenix who accepted cash. Some dealers do not accept cash or buy what you have in cash. I don't patronize them. Their loss.

Quote:
Originally Posted by ladysovereign View Post
I'm guessing that you're not doing "Cash for Gold" but using a designated broker to buy Gold on the Market? Out of curiosity, what fees are charged for that kind of transaction?

I have sincere interests in knowing since my Bonds are paying me peanuts, my R.E. investments are just breaking even and my stock portfolio is down as well (probably selling just to stop paying fees). And I don't even want to talk about how little interest my CD's are getting.
 
Old 10-17-2010, 02:59 PM
 
Location: Pinal County, Arizona
25,100 posts, read 39,246,649 times
Reputation: 4937
Right now, IMO, it is a small (and large) investors (real estate) heaven.

It is not unusual to get 9 to 11% cash on cash return on rental properties - converting retirement funds to cash to buy properties for cash - no debt service (no leveraging allowed! ).
 
Old 10-17-2010, 04:44 PM
 
660 posts, read 1,397,173 times
Reputation: 289
Quote:
Originally Posted by Ponderosa View Post
Wow! How could those investors be so dumb? And using cash no less... I guess they don't get their investment advice from a C-D forum.
Hey, no need to be sarcastic. If you don't like the discussion, then leave. If you have something useful to add, then do it instead of trying to start trouble. Oh and if you look through the C-D forum you will see there are groups specifically set up for sharing information on Real Estate and Investments. Not everyone distrusts the Internet.
 
Old 10-17-2010, 04:46 PM
 
Location: Anchored in Phoenix
1,942 posts, read 4,568,295 times
Reputation: 1784
Ugh! This was not in my mother's Personal Finance book class in the 70s. I don't ever recall in that book finding "being a landlord" as a viable way to save for retirement. The best investments, according to her text, were stocks. And it was right before the 1980s boom.

These days people are getting most of their information from those who have no preven credentials and they are betting their life savings on such advice. The information they should otherwise use is free. It's at the public library.

Or you go to a bookstore. You pick up a book on personal finance. You turn to the back and read about the author. You use your BS detector and determine whether the author's advice has been tested and true over several decades and not just booms, such as gold in 1980, tech stocks in 1999 and real estate in 2005.

But anyone taking advice from hidden people with hidden credentials are in danger of being dam fools.

Quote:
Originally Posted by Greatday View Post
Right now, IMO, it is a small (and large) investors (real estate) heaven.

It is not unusual to get 9 to 11% cash on cash return on rental properties - converting retirement funds to cash to buy properties for cash - no debt service (no leveraging allowed! ).
 
Old 10-17-2010, 04:46 PM
 
660 posts, read 1,397,173 times
Reputation: 289
Quote:
Originally Posted by Howard Roark View Post
Gold that I buy, I pay 4% broker fee. Gold that I sell, I get 1.15% above the spot price. This is in Los Angeles. In Phoenix you have to shop around. I used to buy at a small dealer in Phoenix who accepted cash. Some dealers do not accept cash or buy what you have in cash. I don't patronize them. Their loss.
Thank you. This is very useful info!
 
Old 10-17-2010, 04:47 PM
 
Location: Sonoran Desert
39,075 posts, read 51,199,205 times
Reputation: 28314
Quote:
Originally Posted by ladysovereign View Post
Hey, no need to be sarcastic. If you don't like the discussion, then leave. If you have something useful to add, then do it instead of trying to start trouble.
Hey no need to be attacking another poster. I think there is a reason that they are buying. Sorry you don't like the way I phrased it.
 
Old 10-17-2010, 04:50 PM
 
660 posts, read 1,397,173 times
Reputation: 289
Quote:
Originally Posted by Greatday View Post
Right now, IMO, it is a small (and large) investors (real estate) heaven.

It is not unusual to get 9 to 11% cash on cash return on rental properties - converting retirement funds to cash to buy properties for cash - no debt service (no leveraging allowed! ).
9 to 11% after all expenses paid? Where is this place and are you renting homes or apartments?
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