Phoenix Topping the List in Inflation (Scottsdale, Tempe: loan, how much, homes)

[MN-Born-n-Raised]

Originally Posted by SAN_Man

If they sell their Oakland Hills house for $1.7mm, they could purchase a newer/larger million dollar house in Phoenix/Scottsdale cash, and bank the 700k. That seems like a deal to me.

In 2022, $1M doesn't get you much in Scottsdale any longer. The median cost per square foot in Scottsdale is $429 https://www.realtor.com/realestatean...le_AZ/overview . It's $592 in Oakland https://www.realtor.com/realestatean...nd_CA/overview

It's not 70% more expensive in Oakland as you quote^^. It's about 38% higher in Oakland.

[john3232]

Originally Posted by SAN_Man

If they sell their Oakland Hills house for $1.7mm, they could purchase a newer/larger million dollar house in Phoenix/Scottsdale cash, and bank the 700k. That seems like a deal to me.

My friend like many home owners in Cal. who bought years ago is "house-rich." His salary isn't anything special in Northern Cal. Maybe 130k. (Wife is retired.) He's 64 but doesn't plan to retire anytime soon. Like other Californians thinking about leaving the state the Phx metro is on his radar. Next time we talk I'll ask what other areas they've considered.

700k-800k would get them a very nice home in Tempe.

Their Oakland house: 4bed/1.5 bath 1700 sq. ft. lot: 4000.

[locolife]

Originally Posted by MN-Born-n-Raised

In 2022, $1M doesn't get you much in Scottsdale any longer. The median cost per square foot in Scottsdale is $429 https://www.realtor.com/realestatean...le_AZ/overview . It's $592 in Oakland https://www.realtor.com/realestatean...nd_CA/overview

It's not 70% more expensive in Oakland as you quote^^. It's about 38% higher in Oakland.

How is that percentage impacted when you factor in taxes? Also, living in Oakland versus Scottsdale isn't really comparable. On a scale of 1 to 100 this is how the two cities rank for crime.

• Violent Crime in Scottsdale is 11 versus 75 in Oakland
• Property Crime in Scottsdale 35 versus 81 in Oakland

Moderator cut: link removed, competitor site

[frankrj]

Originally Posted by Valley Native

Here's what you have to remember: California has a very long dry season (roughly April to November). If you miss out on the Pacific storms like this past winter (exception being last December), and the winter prior, there's little hope for rain/snow until the following November or December. Thus, the fire and drought risk increase significantly. When southern CA gets a dry winter, we also get a dry winter, but we at least have a summer monsoon beginning in July and lasting until about mid September. Sometimes it's a NONsoon, but we can count on some decent thundershowers in most years ... especially in the higher elevations where it's really needed.

Also, it's Phoenix and most of southern AZ which have the 100+ temperatures for about 4 months. There are parts of the state which have beautiful summers, and have never reached the century mark. But I'm the first one to say that our 4 months of heat can be very monotonous and hard to deal with. San Fernando Valley may not be as hot as Phoenix, but it still averages much warmer summer temps than the parts of L.A. closer to the coast. I've noticed some distinct temperature differences between LAX and stations like Woodland Hills, Van Nuys, etc.

You are 100% correct. I grew up in L.A. & know it like the back of my hand. Lived in Santa Monica and had friends in Granada Hills, DTLA, Pasadena, Long Beach, OC. Inland Empire. Inland can get terrible heat waves and the smog makes the air quality so bad you can no longer see the mountains from 10-15 miles away. Somedays you see the Hollywood sign from La Brea and Stocker while other days no chance. Same with going from North I60 to 210W en route to Las Vegas. Some days you see the mountains from inland cities and on smoggy days you don't. Forget about it and let's not be gullible and say its haze from the ocean. I played competitive outdoor sport and know when it's smoggy and polluted.

To be fair, SoCal's evening cooler air is so refreshing and it's over the whole region. That is pleasant but limited to I-110 and westward. Further east inland and the heat persists. The L.A. lifestyle and things to do "outdoors" sets it apart.


As far as costs, the govts. wreckless extreme stimulus spending and higher wages inflated L.A. home and rent prices (actually every major city is experiencing huge rent increases). When you can't afford to drive or eat out as much because of high gas and service prices, then it's time to move.

L.A. is not for everyone and neither is Phx. Phx certainly was not for me. There were many 90+ days in late December & January the two years I was Chandler there. And I already experienced the 110-118 summer temps. Someone I met in Phx in December while visiting from Texas had asked me if it always hot here. I had to say yes from my experience. On a positive note, I don't notice air pollution in Phx at all compared to L.A.
In Phx you can always escape the heat and drive 2 hrs north of Phoenix but there's not much to do. You can escape the inland heat and smog in SoCal too but it will end up costing you quite a bit near the coast. A household with multiple incomes is what you need not one person.

[asufan]

Originally Posted by frankrj

L.A. is not for everyone and neither is Phx. Phx certainly was not for me. There were many 90+ days in late December & January the two years I was Chandler there.

You're just making stuff up, blatantly lying.

"The highest temperature ever recorded in any January was 88 on the 19th in 1971."

I'm from Southern California (South Orange County), which I personally like more than metro Phoenix. I don't like LA at all. But the weather isn't far apart until May, except for a couple of unseasonably warm days maybe.

[MN-Born-n-Raised]

Originally Posted by locolife

How is that percentage impacted when you factor in taxes? Also, living in Oakland versus Scottsdale isn't really comparable. On a scale of 1 to 100 this is how the two cities rank for crime.

• Violent Crime in Scottsdale is 11 versus 75 in Oakland
• Property Crime in Scottsdale 35 versus 81 in Oakland

Moderator cut: link removed, competitor site

Correct ^^. We all know that (shy of the Oakland Hills area and other more ideal parts of Oakland), crime is out of control. And we also know that around the Bay area property taxes, income taxes, gas prices, food prices, are way more expensive in Oakland.

But that wasn't what I was responding to. Instead, I was addressing his single point: the cost comparison of housing. While we are gabbing, just as there is a huge difference in cost per square foot in Scottsdale ( a view and view alone can make easily change a value by $500K in Scottsdale), it can be even larger in Oakland. But as an aggregate, Scottsdale is no longer cheap. "A million-dollar home" formally meant something special.

[wilberry]

Surprise , AZ
2020 Two bed two bath 3 rd floor 1,136 Sq ft
base rent $1284 added fees $ 130

2022 May same Apt with minor upgrades , some have Quartz counter tops some newer appliances
$ 1,925 plus $ 150 added fees ( for new resident )

remember Occupy Wall street ? , protest changes nothing , politicians change nothing , if you make to the top 20% of income earners in this country you will be fine, the rest are screwed.

Arizona
Top 1% income threshold: $503,408
Top 5% income threshold: $216,972
Top 20 % over $100,000 ( in 2020 Dollars )

[MN-Born-n-Raised]

Originally Posted by wilberry

Surprise , AZ
2020 Two bed two bath 3 rd floor 1,136 Sq ft
base rent $1284 added fees $ 130

2022 May same Apt with minor upgrades , some have Quartz counter tops some newer appliances
$ 1,925 plus $ 150 added fees ( for new resident )

remember Occupy Wall street ? , protest changes nothing , politicians change nothing , if you make to the top 20% of income earners in this country you will be fine, the rest are screwed.

Arizona
Top 1% income threshold: $503,408
Top 5% income threshold: $216,972
Top 20 % over $100,000 ( in 2020 Dollars )

You are mostly true. Realize when everything is paid off and you make $100K, you are living (semi-) large! Even a $24K in rent isn't a big deal if you are debt-free. There is a lot more that goes into what is "affordable" or who is or isn't "screwed".

IMO, most people are terrible with their finances! And, many more !!!!!!!!!!!!!! For some anecdotal evidence, my son is living with his fiancé in San Fran. They are in their residency making a "whopping" $130K together (Important: they are taxed as a single person without any write-offs so they are getting nailed). As in, slave labor for 4 years. But they knew that going into it. Their San Fran rent is around $4K a month. It's furnished and they were smart enough to look for a place furnished to not waste $$'s.

They drive one paid-off car that they bought for $12K pre-massive auto appreciation which is now worth about $15K. Keeping it real, I paid $8K as a graduation gift from medical school. So one of the two will bike or BART (public transit) for work. And again, keeping it real, they get a decent food allowance exclusively while at work. And they have the discipline to eat the same boring crap that they bring home to maximize their $$'s or stay for a learning session that serves a meal (resulting in more hours away from home).

They have old cell phones. Our son's Mac laptop is at least 8 years old and it is limping along. They buy their clothes at thrift stores, they don't eat out, their entertainment is parks and camping in tents, and they don't "vacation" unless they go out to a free, out-of-state seminar. Because they mastered basic personal finance 101, they are SAVING over a Grand a month.

Big picture, they know how to live below their means. That's the secret of not feeling "screwed" all the while they save $$. That's common sense for some, yet not for others. Combine that with the drive to get to the next level the skies the limit! Good things happen for a reason. For most people, life is a marathon. It's about paying your dues, pushing forward with your goal, and adapting when wrenches change your plan.

[john3232]

Originally Posted by wilberry

Surprise , AZ
2020 Two bed two bath 3 rd floor 1,136 Sq ft
base rent $1284 added fees $ 130

2022 May same Apt with minor upgrades , some have Quartz counter tops some newer appliances
$ 1,925 plus $ 150 added fees ( for new resident )

remember Occupy Wall street ? , protest changes nothing , politicians change nothing , if you make to the top 20% of income earners in this country you will be fine, the rest are screwed.

Arizona
Top 1% income threshold: $503,408
Top 5% income threshold: $216,972
Top 20 % over $100,000 ( in 2020 Dollars )

The fact property management is pocketing an additional $150 a month in "fees" tells you the rental market is hot. You can only charge what someone is willing to pay. Supply and demand. Right now life is good for me as an owner of investment/rental property and I plan to collect. But there was also a time when it was a complete nightmare (2006-2009) and I developed stomach problems which never quite went away.

As far as upgrades. Nobody is going to pay over market rated because my rentals look nice. That's to be expected if I want top dollar. And top dollar is what I need in today's rental market. Prices have risen for everyone including yours truly.

[SAN_Man]

Originally Posted by MN-Born-n-Raised

In 2022, $1M doesn't get you much in Scottsdale any longer. The median cost per square foot in Scottsdale is $429 https://www.realtor.com/realestatean...le_AZ/overview . It's $592 in Oakland https://www.realtor.com/realestatean...nd_CA/overview

It's not 70% more expensive in Oakland as you quote^^. It's about 38% higher in Oakland.

Go on Zillow, put a filter on for 900k - 1M in Scottsdale and there are tons of listings right now. Here's nice one with 3,600 square feet of living space. How much space would a retired couple need??
https://www.zillow.com/homedetails/1.../8037861_zpid/


Now go and look up Oakland Hills...I see 3 listings in the 900k-1M with square footage ranging from 1,000 to 1,600. Scottsdale is still a great deal with many options for a Californian looking to sell here.

Edit, where did I say it was 70% more expensive? I said that person in Oakland could sell their house for $1.7M and buy a $1M house in Scottsdale or Phoenix (all cash offer) and bank the remaining 700K leftover from the sale of their CA house.