Caution! Home buyers! Possible price correction coming to Phoenix! (Mesa: apartment complex, renters)

[fluffythewondercat]

The Scottsdale winter luxury home buying season kicks off in a week or so with Barrett-Jackson and the other collector car auctions. There are several palatial remodels within walking distance of my home. Should be interesting to see what interest and prices they command.

[RosaCiro13]

I think if someone is moving to the Phoenix area it is "relative"
from what City they are moving from, especially if they are older, and retired. We are selling our house in Northern CA., (which is not priced as high as most of CA. south of us.) Our house will probably sell for $430K to $450K, the most it has been valued since we bought it 20 years ago. And we plan on buying a smaller house in SunCity West for $250K to $270; less Taxes and over head to maintain it. So even if the house in SunCity goes down in value our house in No.CA. will go down more, I believe. At this point there are more people leaving CA. then moving here and with all the Fires, causing House Insurance to continue to go up and PG&E shutting off our Utilities, more people will be leaving in the coming years.

[Sno0909]

Originally Posted by spoonman1

Housing is still too “cheap” here compared to LA, SD, Denver, Seattle, Dallas, etc. Pricing is definitely not inflated in comparison.

It's "too cheap?" I think the market dictates the prices, not you.

[Prickly Pear]

The downside to all of this is if there’s a downturn in the market it will be worse economically for a lot of people than in the past, because renting if not buying needs even more of a correction. One bedrooms in Mesa for $1400/month? I mean come on. I’d never pay that much to live in Mesa. Rents starting at 1000 and steeply climbing in Ahwatukee? Close to 2000 in Downtown and Scottsdale?

Rental companies are committing highway robbery. I rent a SFH from a landlord and it’s a significantly better deal than any apartment can get me. I’d do even better with a condo rental from a landlord. These rental management companies need to be reigned in....

As a public sector employee I make a fair amount of money, not a whole lot. If I had a decent down payment I’d be way better off buying here. The downside? I don’t have the down payment. And with rents like this I’ll never be able to have one.

[spoonman1]

Originally Posted by Sno0909

It's "too cheap?" I think the market dictates the prices, not you.

My point is that it is inexpensive in comparison to surrounding metro areas and thus pricing is not likely to decline significantly. I’m not saying prices should be higher.

[Kate2345]

Originally Posted by Prickly Pear

The downside to all of this is if there’s a downturn in the market it will be worse economically for a lot of people than in the past, because renting if not buying needs even more of a correction. One bedrooms in Mesa for $1400/month? I mean come on. I’d never pay that much to live in Mesa. Rents starting at 1000 and steeply climbing in Ahwatukee? Close to 2000 in Downtown and Scottsdale?

Rental companies are committing highway robbery. I rent a SFH from a landlord and it’s a significantly better deal than any apartment can get me. I’d do even better with a condo rental from a landlord. These rental management companies need to be reigned in....

As a public sector employee I make a fair amount of money, not a whole lot. If I had a decent down payment I’d be way better off buying here. The downside? I don’t have the down payment. And with rents like this I’ll never be able to have one.

Prickly Pear, you don’t even need that much of a down payment to buy a home. For those of low or moderate income, you possible need NONE. But you can get a conventional 3% down. If you’re a first time buyer cash out your IRA.

[DatBoiLavoi]

Originally Posted by Kate2345

Prickly Pear, you don’t even need that much of a down payment to buy a home. For those of low or moderate income, you possible need NONE. But you can get a conventional 3% down. If you’re a first time buyer cash out your IRA.

Cashing out an IRA to pay for an overvalued asset is not a smart decision. If you need to purchase soon, I would wait until you have at least 10-20% to put down on a property before buying. You may have to move to a lower cost area in order to achieve this.

Don't let others convince you that asset prices can keep increasing irrespective of wages in the long term. Debt can fill in the gap, but only so long.

[john3232]

Originally Posted by Prickly Pear

The downside to all of this is if there’s a downturn in the market it will be worse economically for a lot of people than in the past, because renting if not buying needs even more of a correction. One bedrooms in Mesa for $1400/month? I mean come on. I’d never pay that much to live in Mesa. Rents starting at 1000 and steeply climbing in Ahwatukee? Close to 2000 in Downtown and Scottsdale?

Rental companies are committing highway robbery. I rent a SFH from a landlord and it’s a significantly better deal than any apartment can get me. I’d do even better with a condo rental from a landlord. These rental management companies need to be reigned in....

As a public sector employee I make a fair amount of money, not a whole lot. If I had a decent down payment I’d be way better off buying here. The downside? I don’t have the down payment. And with rents like this I’ll never be able to have one.

The property management company recommends a rent but the owner makes the final decision.

However, I agree it's best to rent direct. You meet the owner, they meet you.

My renters call me up for something and I'm over there within a hour. In turn I expect them to abide by the terms of the lease agreement.

I've got my own bills to pay so I insist rent be paid on the 1st of the month.

If I have to chase down the rent, find out AC filters aren't being changed or someone is living there who shouldn't be the lease will not be renewed.

Out you go.

On the other hand I won't raise much assuming I do if renters pay on time and take care of my property.

It's not rocket science. I was a renter for over 30 years. I paid on time and took care of the apartment. Always got along with the owner.

[veritased]

This is sounding like talk we had in SF Bay Area in the early 2000s... look where that ended up.

[Kate2345]

Originally Posted by DatBoiLavoi

Cashing out an IRA to pay for an overvalued asset is not a smart decision. If you need to purchase soon, I would wait until you have at least 10-20% to put down on a property before buying. You may have to move to a lower cost area in order to achieve this.

Don't let others convince you that asset prices can keep increasing irrespective of wages in the long term. Debt can fill in the gap, but only so long.

I think the financial advantage to owning a home isn’t increasing equity but because you freeze your rent. Most people can’t save 20% of anything.