Breaking News: Phoenix home prices up 32% in past year (Scottsdale: HOA, appliances)

[bguar]

Originally Posted by Captain Bill

This is not investment advice; it's only a personal opinion.
I would not buy a new build expecting a gain within a few years. One is paying top dollar for all the additional amenities, plus the draperies, rear yard, etc so the price adds up. If I were buying a new build it would be strictly for the purpose of having my choice of floor plan that we would enjoy for 10+years, and hope that the price would keep up with inflation.

If I were to buy a home expecting to make a profit on a sale I would buy a home at a discount to market that needs updating and repairs. I would make those updates and repairs as I lived in the home so as to increase the value. Since one cannot recover the actual cost of the updates, the home has to be purchased at a market discount in order to make a profit over a few years; assuming the market increases.

Our primary residences have always been about living in them; not an investment. We were in the first one for 7 years; the second for 34 years, and have been in our current home for 8 years. We were fortunate in that the first two homes appreciated considerably, but the current home value is still slightly less than what we paid.

My opinion is to treat the primary residence as a residence only, and if one wants an investment property, buy a separate house as a rental, even if the cash flow doesn't quite cover the mortgage, it will have a tax write off, plus the appreciation over time.

Careful with the tax suggestions. There's a lot more to rental income that determines if you actually end up with a tax write off

I agree with everything else though! If you can buy at a discount and upgrade the home (let's face it, most of the homes in the valley have crap builder grade everything that by now is all falling apart slowly) it's worth it. You will pay a massive premium for new construction in many cases. Just look at Windgate Ranch up in 85255.

[liz451]

Metro home sales, prices increase in June, but at slower pace

[jimj]

Well, we're going to refinance this month, was going to go for a streamline (no appraisal) but I'm interested to see how much gain if anything the appraisal shows from when we bought 2 years ago. If it's good (hoping) it'll drop our payment a whole bunch. If it's not so good it'll save us just a bunch.
I'll have to let y'all know how it turns out.

[sarichter]

Originally Posted by Captain Bill

This is not investment advice; it's only a personal opinion.
I would not buy a new build expecting a gain within a few years. One is paying top dollar for all the additional amenities, plus the draperies, rear yard, etc so the price adds up. If I were buying a new build it would be strictly for the purpose of having my choice of floor plan that we would enjoy for 10+years, and hope that the price would keep up with inflation.

If I were to buy a home expecting to make a profit on a sale I would buy a home at a discount to market that needs updating and repairs. I would make those updates and repairs as I lived in the home so as to increase the value. Since one cannot recover the actual cost of the updates, the home has to be purchased at a market discount in order to make a profit over a few years; assuming the market increases.

Our primary residences have always been about living in them; not an investment. We were in the first one for 7 years; the second for 34 years, and have been in our current home for 8 years. We were fortunate in that the first two homes appreciated considerably, but the current home value is still slightly less than what we paid.

My opinion is to treat the primary residence as a residence only, and if one wants an investment property, buy a separate house as a rental, even if the cash flow doesn't quite cover the mortgage, it will have a tax write off, plus the appreciation over time.

Could not agree with you more. I bought my condo in this manner knowing full well that is was my primary residence and if I ever left the state (which I plan on doing), I could keep it as a winter home. Even though I'm still way underwater on the LTV on this property, prices are starting to come back up and I'm speeding up my payments in order to cover the loan. A second home that is paid off is a pretty nice thing (when it happens of course)

[sarichter]

Originally Posted by jimj

Well, we're going to refinance this month, was going to go for a streamline (no appraisal) but I'm interested to see how much gain if anything the appraisal shows from when we bought 2 years ago. If it's good (hoping) it'll drop our payment a whole bunch. If it's not so good it'll save us just a bunch.
I'll have to let y'all know how it turns out.

Good luck with the refinance. I'm undergoing one myself right now and it's taking forever. But I hear that the banks are actually getting them done even with the delays! I had an appraisal done just because the bank could not 'find a value' for my home... I don't even understand how that's possible since it has to be listed as taxable property in Maricopa County.

[jimj]

Originally Posted by sarichter

Good luck with the refinance. I'm undergoing one myself right now and it's taking forever. But I hear that the banks are actually getting them done even with the delays! I had an appraisal done just because the bank could not 'find a value' for my home... I don't even understand how that's possible since it has to be listed as taxable property in Maricopa County.

Well thankfully the bank doing the refi is the bank I currently have my house with (and a few other loans) and is a smaller "community" bank so answers come surprisingly fast.

[sarichter]

Originally Posted by jimj

Well thankfully the bank doing the refi is the bank I currently have my house with (and a few other loans) and is a smaller "community" bank so answers come surprisingly fast.

Funny, I actually tried to refinance through my credit union and their investors wouldn't agree to my huge LTV even with the expansion of the new government program. However, my current bank (big world bank) is refinancing me so I guess i can't complain!

[sunluv]

Thursdays at 10 pm, Discovery.

Property Wars: Phoenix Auction Properties : Video : Discovery Channel

[Sunni2012]

I agree with everything else though! If you can buy at a discount and upgrade the home (let's face it, most of the homes in the valley have crap builder grade everything that by now is all falling apart slowly) it's worth it. You will pay a massive premium for new construction in many cases. Just look at Windgate Ranch up in 85255.[/quote]



new builds are debatable, it depends on area and square footage..Many new builds right now are a great deal and you just need to research the builder

[bguar]

Originally Posted by Sunni2012

I agree with everything else though! If you can buy at a discount and upgrade the home (let's face it, most of the homes in the valley have crap builder grade everything that by now is all falling apart slowly) it's worth it. You will pay a massive premium for new construction in many cases. Just look at Windgate Ranch up in 85255.

new builds are debatable, it depends on area and square footage..Many new builds right now are a great deal and you just need to research the builder[/quote]

Yep. Depends on the builder and I entirely agree. But there's a lot of them that aren't -- I would assume more cases than not, especially in N Scottsdale.