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Old 06-04-2010, 03:42 PM
 
Location: Casa Grande, AZ (May 08)
1,474 posts, read 3,221,661 times
Reputation: 1149

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News Room - Trulia.com - Press Releases

This is a report they put out today that takes the average sales price and then divides it by 12 months of the average for a 2 bedroom place.

Using this formula, Trulia says we are the 8th best city in the country to BUY rather than rent right now.

They do not take into account down payments etc...

Just sort of a fun report....

Minneapolis is the BEST place to buy rather than rent, and surprising OMAHA, NE is the best place to RENT rather than buy?
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Old 06-04-2010, 04:20 PM
 
5,453 posts, read 7,254,044 times
Reputation: 2141
Of course they say that....there are a lot of homes for sale and a lot of hungry RE's! I say this...with all due respect, buy when you're absolutely sure you can afford it on one income or worst! or when you're 300% sure you'll WANT to be where you buy....I say that because there is no point in buying if you're going to end up relocating somewhere else! you're not having enough time to build equity and in this market...good luck with that as it is!
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Old 06-04-2010, 04:50 PM
 
123 posts, read 289,691 times
Reputation: 64
It's much better to buy than rent in Phoenix because prices are so low right now. Buy low and sell high, right!
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Old 06-04-2010, 05:09 PM
 
10,720 posts, read 16,328,102 times
Reputation: 9819
I don't agree with this. Rent until you find a home you can afford. Prices are still going down and that goes for all parts of the Valley. I have friends who are realtors and i remember one of them telling me to buy a house by December of 08' because after that prices would steadily increase. Another said to buy by December 09'. I remember Money magazine had an article 2.5 years ago that claimed the bottom in Arizona would not reach until the third quarter of 2010. Some of the realtors on this forum, like Captain Bill, ridiculed that article. I guess we know who got the last laugh
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Old 06-04-2010, 05:52 PM
 
5,453 posts, read 7,254,044 times
Reputation: 2141
This "idea" is what got us into this mess to begin with....
Quote:
Originally Posted by TomB90 View Post
It's much better to buy than rent in Phoenix because prices are so low right now. Buy low and sell high, right!
There are a lot more things to consider than the purchase price:
Job, (& how steady in THIS economy...)
Property taxes
Insurance
HOA
MAINTENANCE (which usually can cost a pretty penny)

I think the most important is to be sure you'd want to be there for the next 20yrs....otherwise it is a waste of energy, because if you're there a few years that won't build enough equity for a 60inch TV.......so...you're better off renting and save all the property taxes and homeowners insurance, plus HOA fees and maintenance money and you'll end up buying two 60inch TVs or some other expensive item....rather than sit and wait for the equity to build up.

Also, remember the area you want to buy in, sure you have a HUGE house on the outskirts far far away from everything, count in your gas expenses....makes a huge difference and can definitely keep you trapped in the house....some ppl like that....I won't name them.....

The concept is overrated... why would you want to buy a house and basically gamble the sell price along with your credit on the hopes for a market that may or may not happen?? when you can just rent and buy only when 100%+ sure you found the perfect house in the perfect town etc...a "house" is not like a pair of shorts that you can take back without consequences & where you either exchange for another, get store credit or your money back...a "house" comes with a LOT of strings attached....I don't see any mortgage company giving "store credit" when you go under, or don't want it anymore!

I think ppl should be very assertive these days about buying homes & read those mortgage docs with the magnifier glass...just yesterday my husband was dealing with a crazy issue: "Short sale", all looked fine, the day of closing came and all of the sudden his title company gets word that the HOA foreclosed the property! mortgage company not willing to short sale the property anymore....$1800 owed in HOA fees....deal went OFF. Imagine being THAT buyer! That says a lot about this market and it's traps. Sure it looks like an awesome deal...but is it really? CAUTION is the keyword, a lot of ppl got screwed over big time...let's not forget that. The majority of those ppl wanted a home...not a flip...
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Old 06-04-2010, 06:47 PM
 
380 posts, read 878,437 times
Reputation: 198
the hoa has 10 days to respond to a demand letter from the escrow officer.
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Old 06-04-2010, 06:49 PM
 
5,453 posts, read 7,254,044 times
Reputation: 2141
I know...they tried to get in touch with the HOA for weeks, the HOA rep was keep telling him "they are working on it"....then the other day told him flat out they foreclosed on the property! Insane....


Quote:
Originally Posted by smokemaster View Post
the hoa has 10 days to respond to a demand letter from the escrow officer.
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Old 06-04-2010, 07:06 PM
 
10,720 posts, read 16,328,102 times
Reputation: 9819
Quote:
Originally Posted by algia View Post
This "idea" is what got us into this mess to begin with....


There are a lot more things to consider than the purchase price:
Job, (& how steady in THIS economy...)
Property taxes
Insurance
HOA
MAINTENANCE (which usually can cost a pretty penny)

I think the most important is to be sure you'd want to be there for the next 20yrs....otherwise it is a waste of energy, because if you're there a few years that won't build enough equity for a 60inch TV.......so...you're better off renting and save all the property taxes and homeowners insurance, plus HOA fees and maintenance money and you'll end up buying two 60inch TVs or some other expensive item....rather than sit and wait for the equity to build up.

Also, remember the area you want to buy in, sure you have a HUGE house on the outskirts far far away from everything, count in your gas expenses....makes a huge difference and can definitely keep you trapped in the house....some ppl like that....I won't name them.....

The concept is overrated... why would you want to buy a house and basically gamble the sell price along with your credit on the hopes for a market that may or may not happen?? when you can just rent and buy only when 100%+ sure you found the perfect house in the perfect town etc...a "house" is not like a pair of shorts that you can take back without consequences & where you either exchange for another, get store credit or your money back...a "house" comes with a LOT of strings attached....I don't see any mortgage company giving "store credit" when you go under, or don't want it anymore!

I think ppl should be very assertive these days about buying homes & read those mortgage docs with the magnifier glass...just yesterday my husband was dealing with a crazy issue: "Short sale", all looked fine, the day of closing came and all of the sudden his title company gets word that the HOA foreclosed the property! mortgage company not willing to short sale the property anymore....$1800 owed in HOA fees....deal went OFF. Imagine being THAT buyer! That says a lot about this market and it's traps. Sure it looks like an awesome deal...but is it really? CAUTION is the keyword, a lot of ppl got screwed over big time...let's not forget that. The majority of those ppl wanted a home...not a flip...
I rep'd you for your first post but this one is even better.
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Old 06-04-2010, 07:47 PM
 
Location: Phoenix
2,897 posts, read 8,818,101 times
Reputation: 919
The problem is when the prices are low, those not financially responsible enough to own a home jump on the deals with adjustable rate mortgages and a few years down the line when taxes get higher, and their rate jumps, they foreclose.
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Old 06-04-2010, 08:25 PM
 
Location: Anchored in Phoenix
1,942 posts, read 3,679,673 times
Reputation: 1753
I'm not going to fall into this knife catching trap. Better to rent in Phoenix for now. In 2006 I was predicting the RE bottom will be 2012. Now I'm thinking 2013 in Phoenix.
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