Capt Bill...question? (Gilbert, Sedona: sale, real estate, rental)

[runnergrl]

Capt Bill,

It has been a few weeks and my husband and I have had some talks about the Phx to LA commute. We are in no rush as we have to see if our CA house will sell for what we need it to. We are in the process of getting our house realtor ready to get the feedback to move to the next step...selling or waiting.

Another option we are considering is Carlsbad in San Diego county....chosen of course because of its separation from LA and it has a metrolink going into LA. The prices seem a touch lower, but still high at around 650ish for single family home in a planned community. My research from the forum and other sources tell me that this is a "normal" area in that people are friendly and polite. Seems to be on the conservative side, but I have learned that conservative isnt the same by CA standards, lol. We plan to visit CB next month and give it the look over more closely. I am cautious in considering this avenue as I said before the prices are still high, and the schools are kinda hit or miss in the area. You might have great elementaries, but then the middle and high schools are iffy.

I am thinking in a time where we stand not to get our full equity back (unless we wait it out for another few yrs and I dont know if I can stand it that long here in CA)...AZ would be better buying option.

What do you think? Do you know anything about CB to compare to Gilbert? I value your opinion since you have lived in CA and now in AZ. Thanks.

[Captain Bill]

Hello Runnergrl, I stayed in Carlsbad a couple of years ago when I had to make a business trip out there. It's a beautiful city, and I understand it's a golfers paradise.

Since I lived in the San Francisco area, I'm only basically familiar with San Diego and Carlsbad from visits I've made. One reason we left CA was the very high cost of living.

Gilbert is a great place to live. In comparison, Gilbert is an oasis in the desert, and is located only 6 hours drive to Las Vegas, same to San Diego and Los Angeles, and less than three hours to Mexico and maybe 6 hours to Rocky Point, Mexico. It's just a couple hours to Sedona and a little farther to the Grand Canyon, and one can drive up to enjoy different climates almost anytime.

Home prices here are definitely lower than Carlsbad, so you can get much more for the money here in Gilbert. You can probably get the same house or more here for half the money. The Gilbert schools are all good and they're pretty consistent from elementary to high school.

Carlsbad on the other hand is right on the ocean; a stone's throw from San Diego and Mexico, and a short distance to Los Angeles, and all of the culture that those areas provide.

The weather in the San Diego area is wonderful, and for sailing in the ocean it's difficult to beat. I have a friend in Gilbert who spends the summers on his boat in San Diego.

Here's a link to the city of Carlsbad Take a Virtual Tour of Carlsbad | City of Carlsbad (http://www.carlsbadca.gov/about/virtual9.html - broken link)

The cost of living in Carlsbad, as you know, is going to be higher than Gilbert. However, you are having to take your husbands job into consideration.

I belong to the Council of Residential Specialists, as I'm working on that designation, so I have a 4 inch thick membership referral directory that lists all the realtors with the CRS designation. When I refer people to realtors outside the area, I either refer them to agents that I personally know, or I interview CRS agents in the area and refer people to the ones that seem to be the best fit for the client. So I can help you out in that regard, to make sure you get a good realtor.

I know you have your heart set on the Gilbert area, and that there are complications to that. One thing you may consider is this. While the market is still in a decline, when you do sell your house out there, you could come to Gilbert and rent for awhile. You could even consider storing a lot of your furniture until you make a final decision. It isn't difficult to get a 6 month lease in a nice property, and that way you and your husband would be able to try this out to see if it will work for you. If it does work then you would begin looking for a home here.

If it doesn't work then you can look for a home in Carlsbad. In both cases the prices may have declined further and you may be able to buy the home at a lower price.

Because of your unique situation, I would not recommend that you move over here and buy right away, because if it doesn't work out then you would lose money on the sale of the home here. We don't want that to happen.

[runnergrl]

Yes...there is no hurry to rush into buying again...we have considered even renting in CB, and/or Gilbert if we sell the house. We have been through CB, as in driving around and such, but we havent done the realtor tour yet.

Our first step...is seeing where we stand with our CA house....and I pray, pray, pray that will happen in our favor enough to consider the next step. You know how real estate can be divine in its timing sometimes. I guess if the loss is too much...we may have to wait until next yr. My husband will not go thru with this if we are losing close to 100G of equity...and I cannot blame him there...that's alot of money. We know we will loose some, but hopefully have enough to make a decent dent. Unfortunately anywhere we go in S CA...it seems like never enough.

The great thing about Gilbert is that I do not have to do any research because we have lived there already and not too much has changed. I already know the neighborhood. My mother inlaw lives there...so it is like no surprises. And the rental idea we have talked about and I think it is a wise choice given our situation.

Currently...we will check out CB...see where that goes. I will keep you updated. Thanks for your advice.

[Captain Bill]

Keep in mind that while you may lose 100k on your present home, the home you buy will also be losing money so it will be cheaper to buy. Consequently, you would not really be losing 100k. Also, if you sell and then rent, and the market continues down, then you will buy the next home for even less money.
So you should come out ahead.

I've actually considered selling our home in AZ and renting for a year, and then buy another one. My wife loves the house because of it's unique location and she said definitely NO WAY. I see it as an investment, but this is a home she loves and so I had to table that idea.

[runnergrl]

Cant blame your wife on that one. lol It does sound like you guys have a great place.

I will keep you posted as my husband and I make our decisions.

[runnergrl]

Ok...after much discussion back and forth...I think we are finally making some headway with a solution. I wanted to let you know because it has been quite a process weighing all the pros and cons of the decision.

After many hours of online research of all the different areas around LA mostly concentrating on OC and SD....I am just overwhelmed and frustrated, because I want a solution that we can agree on and be at peace with. I told my husband...I give it 2 more yrs here...2008 is one of those 2...and then we move back to AZ. That way...we plan and see what the realestate does...we dont make any rash decisions...and we do things in well thought out manner. I have already done 2 yrs here...and I feel I can do another yr at least...knowing we will go back to AZ...and then the 4th yr things could be set into motion, therefore making the time go by more quickly. I finally feel relieved.

I thank you for your advice and experience.

[sheena]

Originally Posted by Captain Bill

Keep in mind that while you may lose 100k on your present home, the home you buy will also be losing money so it will be cheaper to buy. Consequently, you would not really be losing 100k. Also, if you sell and then rent, and the market continues down, then you will buy the next home for even less money.
So you should come out ahead.

I've actually considered selling our home in AZ and renting for a year, and then buy another one. My wife loves the house because of it's unique location and she said definitely NO WAY. I see it as an investment, but this is a home she loves and so I had to table that idea.

Oh I think she's right, stay put in there!

[Captain Bill]

Originally Posted by sheena

Oh I think she's right, stay put in there!

We are. I didn't have a choice.

[Captain Bill]

Originally Posted by runnergrl

Ok...after much discussion back and forth...I think we are finally making some headway with a solution. I wanted to let you know because it has been quite a process weighing all the pros and cons of the decision.

After many hours of online research of all the different areas around LA mostly concentrating on OC and SD....I am just overwhelmed and frustrated, because I want a solution that we can agree on and be at peace with. I told my husband...I give it 2 more yrs here...2008 is one of those 2...and then we move back to AZ. That way...we plan and see what the realestate does...we dont make any rash decisions...and we do things in well thought out manner. I have already done 2 yrs here...and I feel I can do another yr at least...knowing we will go back to AZ...and then the 4th yr things could be set into motion, therefore making the time go by more quickly. I finally feel relieved.

I thank you for your advice and experience.

I'm happy that you have made a decision that is going to work for both of you. It's important that you both agree on the decisions to live with. Do keep in touch. You have my email address, so keep me posted on what's happening.

[hts]

can't help wondering why this relatively private question and subsequent conversation is a public thread and not a series of private messages/emails. i can't help but feel as though i'm somehow eavesdropping on a private conversation, and i somehow feel just a little bit dirty as a result.