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Old 03-24-2021, 10:12 AM
 
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
25,990 posts, read 10,343,854 times
Reputation: 8629

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Quote:
Originally Posted by MN-Born-n-Raised View Post
Are we discussing the same topic? I’m not talking about macroeconomics. Because my POV has everything to do with taking oneself up several notches. More specifically, the educated and disciplined Op who is in their 20’s was wondering how the heck to more easily afford a home.

This time, I’ll say it in a different way…. A whole lot of people can take their exact same situation up many levels. Let’s pick on K-12. Most (>50%) coast. So you can be “below average” intelligence and get above-average grades. Cut, paste, repeat. In life, most (well over 50%) also coast. While we are keeping it real, most (>50%) are impulsive and terrible with money. So if you are following along, whatever cards you are dealt, you have the potential at being soo much better than the coasters. Hence, you can be THE best government worker (how about the AZ governor) that pays a “whopping” $95,000 a year.

So IF buying a house is important to you, then I’d suggest bypassing working for the government. Of course, people that have less money cannot afford it outside of what they make. It’s about taking your unfair share. Or putting it another way, with the same motivation, brainpower, and education, I could have made a fraction of what I made. My goal was to figure out how to make more money than I needed. So if you want to hide under “macroeconomics” and being a “realist”, go for it! Keep on renting and don’t (painfully) save as much as you can.

P.S. I owned my 1st brand new home in 1986 at the ripe old age of 21. I had over 20% down (I picked radishes on a truck farm from age 12) and saved like mad. In fact, I borrowed my dad $3K in total in my early teens that I never got back. Yep, I won the "whoop di f****n do" lottery. In my homeownership example, I must have been in the top 9% making $11 / hour at age 21. lol
Again, you're looking at what would benefit one person like their in a vacuum and their competition doesn't exist.

If more people did as you said with nothing else changed, the same people wouldn't be any farther ahead, as them and their competition will have more money, which will just push prices higher (unless supply increases)
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Old 03-24-2021, 10:14 AM
 
6,994 posts, read 8,451,011 times
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Quote:
Originally Posted by john3232 View Post
Fine and I wouldn't expect any.

Now, I'm not going to lose a quality renter of $150 or $200 a month. But a few of my homes need work and now is the time to increase rents and make the repairs.




The property in question isn't an apartment. It's a 4 bed 2.5 bath home in Gilbert. At the moment I have no intentions of selling. However, if this changes the property is now in great condition and ready to unload.
I fault you for not raising the rents faster. Back in 2008-2012 when I rented my home on the lake, I charged $4000 a week (with a beautiful pontoon included). I'm going to do it again next week. This time I want $5K a week. Or maybe I should be more "fair" and charge $500.
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Old 03-24-2021, 10:16 AM
 
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
25,990 posts, read 10,343,854 times
Reputation: 8629
Quote:
Originally Posted by MN-Born-n-Raised View Post
I fault you for not raising the rents faster. Back in 2008-2012 when I rented my home on the lake, I charged $4000 a week (with a beautiful pontoon included). I'm going to do it again next week. This time I want $5K a week. Or maybe I should be more "fair" and charge $500.
And you two wonder why people hate landlords.....
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Old 03-24-2021, 10:24 AM
 
5,252 posts, read 3,267,844 times
Reputation: 4215
Quote:
Originally Posted by FirebirdCamaro1220 View Post
I know it isn't. I know you rent out houses. That's why I specified that I personally will never rent a house
My mistake.


Quote:
Originally Posted by MN-Born-n-Raised View Post
I fault you for not raising the rents faster. Back in 2008-2012 when I rented my home on the lake, I charged $4000 a week (with a beautiful pontoon included). I'm going to do it again next week. This time I want $5K a week. Or maybe I should be more "fair" and charge $500.
With regards to my properties: rents were never increased because I had been using property management which comes with its own set of problems. Better to keep everyone in place until I was able to move here and take over the homes.

I've got a renter in Mesa who has been in the house since 2014. Paying $1295 for a $1750 a month rental. Can't afford to lose them now but at the end of the year I will give them a 60 days notice. (No use asking for even a $150 increase in rent. I know they can't afford it.)

Early 2022 I plan to fix up the house and re-rent it in the 1800 range.
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Old 03-24-2021, 10:39 AM
 
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
25,990 posts, read 10,343,854 times
Reputation: 8629
Quote:
Originally Posted by john3232 View Post
My mistake.



With regards to my properties: rents were never increased because I had been using property management which comes with its own set of problems. Better to keep everyone in place until I was able to move here and take over the homes.

I've got a renter in Mesa who has been in the house since 2014. Paying $1295 for a $1750 a month rental. Can't afford to lose them now but at the end of the year I will give them a 60 days notice. (No use asking for even a $150 increase in rent. I know they can't afford it.)

Early 2022 I plan to fix up the house and re-rent it in the 1800 range.
$1,750/month in Mesa lol. I pay almost $200/month less than that for a 2 bed 2 bath luxury apartment in Downtown Phoenix. Better location for less money
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Old 03-24-2021, 10:44 AM
 
5,252 posts, read 3,267,844 times
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Quote:
Originally Posted by FirebirdCamaro1220 View Post
$1,750/month in Mesa lol. I pay almost $200/month less than that for a 2 bed 2 bath luxury apartment in Downtown Phoenix. Better location for less money
And I'll have no trouble getting it.

$1550 for a nice 2bed/2bath apartment in downtown Phx? Great deal.
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Old 03-24-2021, 11:03 AM
 
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
25,990 posts, read 10,343,854 times
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Quote:
Originally Posted by john3232 View Post
And I'll have no trouble getting it.

$1550 for a nice 2bed/2bath apartment in downtown Phx? Great deal.
I would be paying $200/month extra for a yard if I rented your house. That's why to me, your better off buying if you want a single family detached house

We got a good move in deal, the market rate is $1,810, and fortunately, we could still afford that if that's what our rent goes up to when re sign
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Old 03-24-2021, 11:10 AM
 
Location: Gilbert, AZ
1,002 posts, read 519,480 times
Reputation: 1765
Quote:
Originally Posted by FirebirdCamaro1220 View Post
I would be paying $200/month extra for a yard if I rented your house. That's why to me, your better off buying if you want a single family detached house

We got a good move in deal, the market rate is $1,810, and fortunately, we could still afford that if that's what our rent goes up to when re sign
If you can afford $1,810 a month, I'm not sure why you think you are so far removed from obtaining a mortgage.
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Old 03-24-2021, 11:23 AM
 
2,379 posts, read 947,373 times
Reputation: 7701
Quote:
Originally Posted by stub303 View Post
Phoenix bidding insanity will soften, but housing will not crash 30-50% as many buyers are paying cash or all cash. Unlike 2008 where people were putting $0, down, people just don't walk away from cash. Also, thinking a wave of evictions / foreclosures is going to change things is wishful thinking. Evictions - sure. Foreclosures - nope. Too many investors (like myself) standing by with cash waiting for the market to soften.

Thanks to Covid and a remote workforce. Californians are keeping their salaries and able to drop cash in Phoenix as it is still extremely inexpensive.

Also, with a remote workforce, housing is no longer tied to local wages. This is unfortunate for an unskilled laborer from Phoenix, as they are now competing against millennials earning 100K working remotely.

I'm a landlord in my part-time in AZ and manage homes in Gilbert. Every single rental leases the same day with 15+ apps and 95% of them are California refugees who now work remote and are amazed they can get a newer home in a safe area for <2K/month. Several of my tenants have even pre-paid leases 2-3 years in advance so that they can lock in a home should the owner sell.

Supply & Demand.

I was early retired in late 2006 into the housing+financial crisis-debacle of 2007 and onward, cashed out, and watched in awe as the crisis unfolded in RE et. al.
At that time mortgage leverage was extreme as ninja, interest only and ARM Loans by the truckload were given to ANYBODY who fogged a mirror.
Remember?

This housing boom is fueled not by bad debt but is a direct result of ZIRP and wanton money creation (see QE) and their love child, asset inflation, as the 'haves', who eventually scoop up the trillions of new money spent by the 'have-less', invest AND spend it because, well, what else more can you do with money to both enjoy and protect against inflation after all your needs are met?

Inflation (other than in financial assets or RE) will not be felt in full until USD$$$ held abroad come home to roost or be spent on energy, the international product that affects all advanced nations consumer prices.

And even then, plenty of $$$ might return to buy more RE, further reducing the liklihood of a RE collapse.
So that old chesnut 'Buy now or be forever priced out!' may actully have some truth to it now!
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Old 03-24-2021, 11:28 AM
 
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
25,990 posts, read 10,343,854 times
Reputation: 8629
Quote:
Originally Posted by Sno0909 View Post
If you can afford $1,810 a month, I'm not sure why you think you are so far removed from obtaining a mortgage.
Two words: Down Payment

There's a big difference between being able to pay $1,810/month and having $80,000 in cash for 20% down
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