This housing market is unsustainable. Why? And when will things cool down again? (Phoenix: 2014, foreclosure)

[locolife]

Originally Posted by stub303

This context of my post was in regards to Californians moving to AZ. I split my time between West LA and the East Valley and a halfway decent 2 bedroom condo in my LA neighborhood is over 1M. So yeah, <400K for a SFH in a safe area like Gilbert 'is' extremely inexpensive.

Exactly, it's all relative. Phoenix remains a bargain even compared to other large western cities I don't see a massive price correction occurring. Phoenix remains cheaper than SF, LA, Denver, Seattle, and Portland. It also remains about level with Las Vegas.



https://realestatedecoded.com/case-shiller/

[FirebirdCamaro1220]

Originally Posted by MN-Born-n-Raised

You didn't google the dopamine topic. It has NOTHING to do with IQ. Dopamine (motivation) is genetic and that was what I was referencing. Economically speaking, horsepower beats brainpower. Smart enough (the Op has a degree) plus horsepower can mean $uccess. But not using your attitude. So we are clear, IF that is your goal, you can make a lot more money than a doctor and dentist.


BS. You can be a business owner with an average (100) IQ. I know a lot of people who fit that profile. As a side note, I was the 1st to go to college out of 6 boys. Some ended up dropping out. On my wife's side, she has 3 HS drop out sisters, in prison brothers, welfare sisters etc. The odds were stacked against us. we poured our hearts into extracting whatever we could from our kids. This did not happen by accident.

Again, it's time to go back to the topic at hand. OP. My advice has changed. Roll over and give up. Because you have no say in how much you make. Only 9% win the prize.

Again, you have no understanding of macroeconomics, and are honestly giving people like OP what amounts to false hope for over 90% of us

[john3232]

Originally Posted by FirebirdCamaro1220

Then again, you're the same poster who is gleefully jacking up the rent on your homes by $500/month

I re-rented one of the properties you are referring by $850. (Occupants had been living there since 2015.)

I received no sympathy during 2006-2010 when my home values dropped by 60%. In fact many people were quite happy to see the housing crash. Such is the way of the world.

Today the local rental housing market is hot and I plan to get market rate. The extra money I use to upgrade my properties. I insist rent be paid on time and in turn I address repairs immediately. Fair is fair.

[blisterpeanuts]

Originally Posted by Prickly Pear

Some people just want a slice of the cake but the cake is gone before they are allowed to even get to it (I'm 26, the last time the market was "good" I was in high school) and I have been doing "all the right things" gone to school, pay off debts, save money get a good credit score... and I still can't make it. It feels rigged and I'm upset. I don't have these 401k stock options others have mentioned, I'm simply looking to enter... and I can't compete with the veterans.

Is living with your parents an option, for a year or two, to cut down on your housing costs and save more downpayment? Or get a roommate?

Would your parents be willing to help you with a downpayment on a property?

I haven't been following the Phoenix market very closely except that I do own a place in Glendale (that's gone up quite a lot, but we haven't raised our tenant's rent so give me a pat on the back for that ), but I wonder if there are some outlying communities where the houses are cheaper, I don't know, in Apache Junction or maybe south toward Tucson. I mean, a longer commute isn't going to be fun, but if it's important to get into a property you own (which I think is a good idea) or find a cheaper rental...

Another possibility - get a part time job to add to your nest egg. Ironically, the stimulus checks and generous unemployment payments are de-motivating people to seek jobs, so that stores and other businesses are unable to find help. Around where I am, pretty much every retail business needs people, not to mention skilled trades, trucking, installation, tech support, etc. Seems like the sky's the limit right now.

None of these things are easy - just some ways people have used to get out of a tough situation. Good luck!

[FirebirdCamaro1220]

Originally Posted by john3232

I re-rented one of the properties you are referring by $850. (Occupants had been living there since 2015.)

I received no sympathy during 2006-2010 when my home values dropped by 60%. In fact many people were quite happy to see the housing crash. Such is the way of the world.

Today the local rental housing market is hot and I plan to get market rate. The extra money I use to upgrade my properties. I insist rent be paid on time and in turn I address repairs immediately. Fair is fair.

Someone with your scruples will never get any sympathy from me.

Just another reason I'll never rent a house. I've never seen an apartment jack the monthly rent by even half that amount

[FirebirdCamaro1220]

Originally Posted by blisterpeanuts

Is living with your parents an option, for a year or two, to cut down on your housing costs and save more downpayment? Or get a roommate?

Would your parents be willing to help you with a downpayment on a property?

I haven't been following the Phoenix market very closely except that I do own a place in Glendale (that's gone up quite a lot, but we haven't raised our tenant's rent so give me a pat on the back for that ), but I wonder if there are some outlying communities where the houses are cheaper, I don't know, in Apache Junction or maybe south toward Tucson. I mean, a longer commute isn't going to be fun, but if it's important to get into a property you own (which I think is a good idea) or find a cheaper rental...

Another possibility - get a part time job to add to your nest egg. Ironically, the stimulus checks and generous unemployment payments are de-motivating people to seek jobs, so that stores and other businesses are unable to find help. Around where I am, pretty much every retail business needs people, not to mention skilled trades, trucking, installation, tech support, etc. Seems like the sky's the limit right now.

None of these things are easy - just some ways people have used to get out of a tough situation. Good luck!

OP's parents left the area, and live in Florida now

[stub303]

OP: It sucks, but you have to hustle. I would look to cut costs, stop saving (and start investing) and seek how you can grow multiple income streams outside a typical W2. Learn a trade or in-demand skill. Sh.. Even my undocumented housekeeper earns 6 figures cash in Phoenix. She gets out and hustles.

[john3232]

Originally Posted by FirebirdCamaro1220

Someone with your scruples will never get any sympathy from me.

Just another reason I'll never rent a house. I've never seen an apartment jack the monthly rent by even half that amount

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.

Originally Posted by FirebirdCamaro1220

....I've never seen an apartment jack the monthly rent by even half that amount

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.

[MN-Born-n-Raised]

Originally Posted by FirebirdCamaro1220

Again, you have no understanding of macroeconomics, and are honestly giving people like OP what amounts to false hope for over 90% of us

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

Some people try to learn from others while others make excuses. I've always studied people who kick butt. While I understand averages, the (coaster) competition really isn't all that tough. YMMV.

[FirebirdCamaro1220]

Originally Posted by john3232

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.

I know it isn't. I know you rent out houses. That's why I specified that I personally will never rent a house