Phoenix: "Now Is The Time To Buy Real Estate". (Mesa: foreclosure, rental)
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There are plenty of good paying jobs in the healthcare field and this will continue to grow. Honestly traveling non stop for a job without a family sounds horrible. I would much rather buy a home put down some roots and actually own my home rather than throw money at ever increasing rent payments.
If you are a transient fellow then it's a no-brainier not to buy
Under 30 without a secure career..another no-brainier. (Unless you are a flipper)
30+ and stable then it's probably a great time to buy as you will gain equity through a mortgage. You will need to pay rent so you may as well pay a mortgage.
If you are 55+ it may not make sense to take out a mortgage. Depends
I'm not convinced the economics work to invest. I've owned rentals for years and the only real money I ever made was from appreciation. Might be worth the gamble though as AZ is a unique opportunity right now.
I bought a year ago but would feel more comfortable buying now as the market seems more stable. it could change within days.
There are plenty of good paying jobs in the healthcare field and this will continue to grow. Honestly traveling non stop for a job without a family sounds horrible. I would much rather buy a home put down some roots and actually own my home rather than throw money at ever increasing rent payments.
So would everyone else but it's just not feasible for every single person to put down roots and own a home. Some people really need to think about renting rather than buying a home they can't afford and relying on a job that has no job security or worse yet, buying a home when they don't have a job and are in school and expecting their degree to carry them through. Unfortunately, this is a false American concept that every single person must own a home when home ownership is not a right; in most countries people rent and it's not a social taboo. And there are not 'plenty of good paying jobs in healthcare fields' That's a myth that trade schools want you to think. Nurses are having difficulty obtaining jobs. The types of healthcare jobs that are available are medical assistants and techs which are not high paying. Yes, 5 years ago there were plenty of high paying health related fields but not any longer again. Again, the key word is 'plenty', I don't want anyone to misquote me and accuse me of saying there aren't ANY high paying health care jobs.
the way those trade schools lie to young people really bugs the ****e out of me, and yes, it does appear that the so-called "nursing shortage" reached a screeching halt. I wonder how many of the trade school grads can differentiate between .001 and .01. We could make a long list of jobs that "nobody wanted" that are no longer available. Teaching is real tight right now. I probably couldn't have qualified for my own rental, but I had the cash......it's been a great investment......grossed 30.03% the first year.
The recession was officially declared over as of June 30, 2009.
Buying a home is still a wise financial move for most of us, for the tax shelter alone. The mortgage interest deduction is a huge, huge deal.
The recession may have ended in June of 2009 but that doesn't mean the bottom of the housing market reached in June of 2009 (which it didn't). The truth is no one knows for a fact if the bottom has hit. Everyone can speculate but no one knows for a fact if and when the bottom will hit.
Buying a home is not a wise financial move for many people. Home ownership as a right is largely an American cultural phenomenon that was created decades ago. However, our economy and markets have changed considerably when that concept was created. When home ownership was considered a right, companies were not outsourcing thousands of jobs overseas particularly in service oriented positions which has been occuring for the past 11 years. People were not required to obtain higher education to obtain a secure job. Everything has changed so relying upon old paradigms is foolish. I remember when Suze Orman(I'm not a Suze Orman fan either) was wisely advising people that home ownership is not a right and that some should be renting 7 years ago during the boom for the same reasons I'm stating now and people thought she was insane for providing that very sage advice.
For most people, they don't have job security and can't afford to own a home. Yes, home ownership is a wise financial move for those who have job security. However, how many people can honestly say they will have the same job in the same city for the next 10 years, and will make the same salary or higher for 10 years? Buying a home for tax benefits should not take precedence over the ability to afford a home in the first place. That idea is what led to this housing mess in the first place.
For most people, they don't have job security and can't afford to own a home.Yes, home ownership is a wise financial move for those who have job security. However, how many people can honestly say they will have the same job in the same city for the next 10 years, and will make the same salary or higher for 10 years?
Your "10 years of employment making the same or more money" statement is silly! No one can say this with certainty. Your health can go south in an instant, your significant other could (out of the blue) want to break-up, you could get sued unexpectedly etc. Are you saying people should live their lives out of fear? What is magical about your 10 year of stability rule?
I don't get your initial point. Where did you get that "Most people cannot afford to own a home?" "Most" homes in the Valley buy homes under $115K. With PITI, that's $700 or less dollars a month!! That is chump change for the majority. Are you saying you need to have rock solid job security and the income of a cardiologist in order to support that modest lifestyles of the Valley's "Majority"?
It's real simple, live under your means and you can handle just about anything that life can though at you. I'm so glad I don't need to tune into Suzy Orman. For me, money management is common sense.
Re: the bottom. I think it is a brilliant time to be buying a home in the Phoenix metro. If my Son or Daughter was fresh out of college and wanted to live in the Phoenix area, I'd be advising them to buy (with specific constraints as to where they bought and describing the trade-offs). An average home is so incredibly easy to afford right now. Hint: in 5-7 years, I bet we see some strong levels of appreciation (not even close to the peak). You like to look back and see what people typed years ago. I will help remind you of my prediction.
Last edited by MN-Born-n-Raised; 01-02-2012 at 04:36 AM..
"Nineteen of the cities experienced price declines, with prices reaching new lows in Atlanta since its 2007 peak and in Las Vegas, from its 2006 peak, S.& P. said. Only Phoenix posted a gain, with a 0.3 percent rise, the Case-Shiller data showed."
Phoenix went up in a month that is typically very slow sales. The rest of the country went down. That's why I have some confidence that with most neighborhoods and most price points, it's going to go up even further (we are entering the Spring season).
While things can change on a dime, housing is looking a whole lot better in the Phoenix metro area.
Time to buy? Depends
I'm not convinced the economics work to invest. I've owned rentals for years and the only real money I ever made was from appreciation. Might be worth the gamble though as AZ is a unique opportunity right now.
So you didn't make any decent money from rental income then? Is that because maintenance cost so much? I suppose if you bought them with a mortgage the profit margin would be slim, but if you bought with cash your margin would be far better.
I'm considering investing in a rental property, bought with cash. But I don't know enough about it all yet. I've read a few horror stories about agents sanctioning unnecessary maintenance work etc. And of course you need the right tenant. I don't want to get burnt!
AZRiver is correct. in his posts. I'd like to point out that it is not "low class" necessarily to have job instability. In fact, the more your annual income in consulting, the less stable your job is. As my ID says, I'm anchored in Phoenix, and that is for my big tax break. I worked in six cities the last eleven years though, east cost and west coast. This is not merely a question of survival, but it's a way to thrive. The worst thing a Phoenician could have done in the last decade is to make sure he is deeply rooted in Phoenix so that when the Great Recession hits and his salary gets cut or job gets cut he has to take the punishment. By that I mean get a mortgage. The best thing a Phoenician could do was get rid of most of his material things, downsize to a one bedroom apartment in a safe area, and become an expert traveler to a high paying job, using Phoenix as a tax base. Once again, my tax benefits for the most part have been and are SEVERAL TIMES the tax benefits I could get from a mortgage interest deduction.
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"Most" homes in the Valley buy homes under $115K. With PITI, that's $700 or less dollars a month!! That is chump change for the majority. Are you saying you need to have rock solid job security and the income of a cardiologist in order to support that modest lifestyles of the Valley's "Majority"?
