rent or buy in Chandler? (Phoenix, Mesa: bank owned, short sale, rental homes)

[julieph85]

Hi, my husband and I are moving out your way this summer. My husband's job will be located right by Sky Harbor so we are looking at Chandler. Are there any other comparable nice areas close to that? If we do decide on Chandler, i'm confused about whether to buy or rent right away. I had planned to rent for the first year so we can get an idea of what area we like, but it is a high priority for me to get in while the market is very low. I want to make sure I buy when the market is real low so I guess my question is, what is the market doing right now in Chandler, and what is it expected to do in the next year? I would not want to miss great prices by waiting a year. What i'm looking for is about 30 minutes or less drive to sky harbor, 3 to 4 bedroom house, nice, family oriented,safe, quiet neighborhood. Our budget is about 250,000. What do you think?

[Kimballette]

Originally Posted by julieph85

If we do decide on Chandler, i'm confused about whether to buy or rent right away. I had planned to rent for the first year so we can get an idea of what area we like, but it is a high priority for me to get in while the market is very low.

Good first instincts - rent, rent, always rent first! Otherwise you might make a huge investment and find the neighborhood doesn't suit you, etc.

[Ponderosa]

If you have a good job locked in and plan to stay in that job for a few years, then I would buy. That is what "we" always did in the past. Very few people moved here and rented for a year in the past. Rentals can cost twice what it would cost to buy the same house right now. Prices could go up 10-20% this year and interest rates are poised for a jump as well. Chandler fits your description to a tee as does Ahwatukee next door for employment at Sky Harbor. Those places are exactly what you want so don't throw away your money on rent.

[julieph85]

Ponderosa, I did notice that when looking on line about the cost of rentals. It seemed like you couldn't get much for less then 1500-1600 per month and you could get a bigger house for about 200K, which would equal out to be the same or less per month. Maybe my husband's company will pay for us to rent somewhere for 6 months so we can get an idea of what we like.

[Home Addict]

You have already missed the "market is real low" period. That was late 2010/early 2011. It may come back to that but seriously, I doubt it. At that time, a house in the Ocotillo area with 4 bedrooms and almost 2300 sq ft sold for 117k. That same house is probably worth 250k+ now.

Renting normally requires a lease of at least 6 months, and don't sign for anything longer. You don't want to get tied down if you really like the area and want to buy, or if you don't like the area and want to move.

Good luck!

[julieph85]

that is good information. I'm coming from Maryland where the market is still pretty bad. It is my understanding from reading some things on line that like you said, Chandler has gotten better from it's lowest point, but the market is still low and the houses are still much cheaper then they were 5 years ago. Most of the houses I have seen listed have had big price reductions, and you can get a 4 bedroom, roughly 2100-2300 sq. feet for around 200k. some cheaper, some slightly more. Isn't that still considered low for Chandler? I'm sure my perception is skewed because here in MD, I live in a 1400 sq ft, 2 bedroom, 1 bathroom single family for 300K!

[ReadyFreddy]

I'd buy, too. I've had an easier time in the past selling homes than getting out of leases. I don't like throwing money away on rent. And the market is still very low.

[azriverfan.]

I would rent. There is no need to buy right now. Furthermore, you may not want to live in Chandler and would then regret purchasing a home. Right now, you can get good deals on rent with the added advantage of having many things paid for like landscaping and maintenance.

There are so many homes for rent that you can shop around and get a good deal. You can play potential landlords against each other and get things thrown in.

A lot of investors have bought homes to rent and the supply of rental homes has increased considerably over the past year. These investors aren't looking to make a profit, they are just looking for someone to occupy their home as its value appreciates. Many of these investors paid cash for their home so they are not looking to nickel and dime tenants, they want a quality tenant who will take care of their home.

Renting makes so much sense but people don't want to do that because it's not sexy to rent. In our culture you are "throwing away your money" by renting but in reality, there are a lot of additional expenses with owning a home that are not factored in. There are many landlords that are willing to pay for maintenance which can be considerable (lawn, pool, pest control, repair). Some include water and trash too. You also don't pay for property tax or HOA fees. In this environment, renting is a great deal.

[Captain Bill]

Chandler is a very large city which spreads to the east to the border of Gilbert, and south to just north of the Indian Reservation.

If you live near the 60, you can live in Gilbert and be 30 minutes from Sky Harbor. Or you can live in NE Mesa near the north loop 202 and still be within 30 minutes of the airport.

You can live in south east Chandler near Riggs and be 40 minutes to the airport, or in Ocotillo in south west Chandler and be 30 minutes

(All times are regular traffic, not commute time)

In other words you have a lot of choices of nice areas to choose from. Around the Ocotillo area the home prices are going to be higher.

If you're able to visit and make up your mind on where to live in a relatively short period of time, then buying first may be the best option.

If you can't, then renting first may be your best option.

If you rent, most single family home landlords will not do less than a 12 month lease. Obviously because it costs them to get the home leased each time someone moves. So be prepared for a 12 month lease and to pay something to get out of a lease. It may cost you a couple months extra.

If you rent, then you'll have time to try to buy a short sale if you wish, because it can take up to 6 months to complete. If you are wanting to move in quickly, then you'll need to focus on bank owned and traditional sale homes.

[azriverfan.]

Originally Posted by julieph85

Ponderosa, I did notice that when looking on line about the cost of rentals. It seemed like you couldn't get much for less then 1500-1600 per month and you could get a bigger house for about 200K, which would equal out to be the same or less per month. Maybe my husband's company will pay for us to rent somewhere for 6 months so we can get an idea of what we like.

I think owning is a great idea but you want to own the right home. Renting is a good solution until you find the right home. So many people made the mistake of prematurely buying a home as soon as they arrived in Phoenix (or before they arrived in Phoenix) and that's where they got into trouble.

Remember, nothing in life is free. Chandler and Ahwatukee are considered upscale areas that have some bad areas. 200K for a home in this area would make me suspicious that the home is not in the most desirable location or the home itself has problems. Nice homes in decent neighborhoods in this area run in the 300K+ range. I'm not talking about gated neighborhood or bling but safe and responsible neighbors, low crime, reasonable proximity to grocery stores, proximal to nice schools. It doesn't have to be fancy but you want a problem free clean home in a safe area near good schools.

Skyharbor is centrally located. There are a lot of nice communities from which you can reach Skyharbor. South Scottsdale, Tempe, Central Phoenix, West Mesa, North Gilbert are all reasonable drives to the airport. You should rent for 6 months at the least to find the area you like and to see these homes and neighborhoods in person (particularly at night). For example, the best deals are in the West Side right now. The homes tend to be newer and better constructed. If you can find a nice home in Goodyear or Avondale and take the I-10 east to the airport, youll be okay. Sure, your drive may be another 15 minutes one way (35 minutes versus 20 minutes) but that's not a lot to give up in the long run.