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Remember the good old days when people bought homes to live in? My thoughts are that someone buys a home that they like, can afford, and have the ability to maintain. Who cares where prices are going if you have bought something that you are prepaired to pay for. I know that at times jobs can be lost and the need to move to another area can be a problem. In the past though people bought a home, paid it off and passed it on to the next generation. My uncle lives in a home that my great grandparents bought who knows when. My parents have owned 2 homes, one in California and the one they are in now in Surprise. Just wish sometimes that people would get back to the basics and buy a home as a domicile and not a piggy bank. Isn't that what got us into this mess in the first place?
Not taking this out on the realtors that do this for a living, just those of us that are not in the business and from what I read here, may want to stick with their day jobs. lol
As someone who may relocate to the area soon, I am in the category of "buying a home to live in". And if it works out we plan to stay in the same house a long long time. But these days who can afford to ignore the future value of the home you are buying? Even if you don't plan on moving its better to feel you haven't overpaid for your home and reduce your risk of being upside down in a few years. And its great to feel that you chose wisely your home and area from an investment standpoint.
Which brings me to my question I ask of the resident wanna be sharks and gentlemen realtors :
if you could purchase to live in a home in either North Scottsdale or Gilbert, like Val Vista, which would you choose purely for an investment standpoint? I have been looking into schools, work drive, and have been in both areas but I wonder if one area or the other is a better idea for long term value.
We would make our decision based upon numerous other factors, so no need to get into those, but which would you choose based upon long term value and why? I appreciate all the carefully considered advice offered on these forums, and I am a literate person so...expound!
Oh, I realize this may be seen as off topic, but I think its related because I am asking about what areas a house flipper/investment buyer would choose and these parties are present. I can start a new post, but if anyone wants to offer their 2cents it would be appreciated...
Hart4July, this is not an easy question to answer because both the areas you mentioned are excellent areas, in my opinion.
When you say North Scottsdale, I think of the larger expensive homes up north with the desert landscaping all around. However, there are the communities around north loop 101 area that are more similar to Val Vista Lakes with green landscaping.
Scottsdale is a more upscale area, closer to upscale shopping and night life, and probably a little faster paced. Some have said words to the effect that Scottsdale has "the" address. I think it's a great place to live, but we chose Val Vista Lakes in Gilbert because of the lakes.
VVL is a more layed back multi-generational family oriented community with plenty of activities for everyone.
In choosing one over the other I would suggest first consider your lifestyle, and your commute to work.
Many of the higher end home prices are beginning to come down in price now, while the lower end stabilized last April and saw some increases.
I know more about Val Vista Lakes because I've lived here for 6 years. I'm active in the community, and have seen the inside of many of the homes. So consider that anything I say about VVL has a slight bias.
However, given that bias, I would never recommend that someone buy in this community if their life style is better suited to another. That is a decision each person must make after visiting the various communities.
There will be others here that can offer more specific information on North Scottsdale.
For future holding of value in general, they would probably be about equal.
In particular, to achieve your goal, you would need to make a careful selection of the property, to make sure the interior and exterior features are popular, and that the layout of the house is one of the more popular floor plans for the valley. That makes it easier to sell, all other things being equal, because more people will relate to the property.
In other words, if you're looking for an increase in value, you should think like an investor and have an exit strategy before you purchase.
VVL has many homes built from 1986 to 2000, and the rest were built after 2000. Many of the early homes are tract type, and many are custom. Homes on the lake tend to be custom built, and where builders did build tract type homes, they couldn't have more than one or two of the same elevation on a block, so it's difficult to tell that they are not custom.
If I were going to buy a home in here now, and if I could afford it I would buy a home on the water that needs a lot of updating, and that is priced below the market. Then as I lived in it I would be able to update it at my leisure and increase the value that way. A good lake front house, priced right, is always desirable here.
If I couldn't afford a lake front then I would buy one of the older houses off the lake and bring it up to date. Quite a few investors have bought REO's here and updated them very nicely.
One appeal of VVL is the lakes and the lush green landscape theme. Desert landscape is not allowed.
The other is the club house amenities. Tennis, raquetball, sand volley ball court, weight room, cardio room, several swimming pools, spa, etc. The club house sits on the water and when you're on the grounds it is like being at a resort. Rather than describe all the amenities, I'll post the link: Val Vista Lakes - About Val Vista Lakes (http://valvistalakes.org/About-Val-Vista-Lakes~56933~11015.htm - broken link)
The HOA dues is only $88 per month. No other community has all the amenities of VVL for that monthly fee. The reason for the low fee is that we rent our banquet rooms out for weddings and private parties. It is a very popular wedding venue. Without that revenue stream the dues would be around $300/month.
All of this makes VVL a very desirable community. However, home prices here will always fluctuate with the overall market, but will always command a premium price because of the amenities.
We have been in Val Vista and really like it , but we think the desert areas are cool too. We see the appeal of both areas visually. Lots more research to do if my husband is offered the job he just interviewed for, and I hope he is!
We feel badly about the number of people who have lost value in their homes over the last few years, but it does offer an opportunity for people who have been thinking about moving to a more expensive area to do so. We would probably break even on the home we built here in IN 5 years ago, when we imagined having a profit if we ever sold. We would take a small hit on our home here to buy in at a very good value there.
So even though the flipper mentality is not our MO, we want to be well informed about where to buy and what to buy in the Phoenix area. There is quite a number of houses that would work for us available, so why not be smart?
I am not sure a waterfront property is for us, but thats good advice. Can you kayak on the Val Vista lakes by public access? That would be awesome.
One thing that really bothers me is that people like us, able and willing to remodel a distressed property in a nice family area and then LIVE in that property with our family for a good long time, are unable to easily BUY those properties. It seems that the investor with cash in hand or time to wait for banks to fart around on Short Sales are getting all the good deals and then flipping or renting the homes . No offense to investors, but it would be SO much better for the neighborhoods if families bought those short sales to help out other families or if there were loans made on foreclosures with remodeling loans added on so that average people could buy the foreclosures, remodel them with loans specifically for renovation and then live in them for a specified (say3 ) number of years.
We would be happy to buy a foreclosure or short sale and renovate it, and then not flip it but live in it.But the headaches the banks make in getting the loan, accepting the offer might prove too much stress for a family like us....
Giving unqualified people loans started this mess to begin with. I would rather have an investor next door, than a vacant, abandoned home any day of the week. Most people did not/do not live withkin their means (including Federal, State, and local governements). Now, they must pay the price, and if that means renting from an investor; so be it. By the time easy money gets here again, prices will be back to at least 2004 levels.
I am not talking about buying OVER our price point, I totally agree with you about that. We are your 20% down, pay on time, buy within your means people that have kept things going for years before this mess started. Excuse me but some of these greedy investors are part of the problem too.They snapped up lots of properties they could not actually afford.
We are only thinking about moving there now that we can AFFORD to buy a home and with stable employment. We would be approved at a higher price point for a regular sale, but have difficulty getting financing from the bank for a home+renovation loan that amounted to LESS than the total amount we could get financing for on a regular sale home. It would be nice to supervise my own remodel rather than pay for someone elses, but the banks make that hard to do.
sounds like you only have 20% of the purchase price, and not 20% of the purchase price +repairs to make livable. I had the "livability" issues with a HUD home. The agent coerced the appraisser into changing the condition from fair to good, when in reality, it was poor. I had 40% down, and we did close.
I've seen a lot of homes lately, that would cost more to remodel, than to tear down and build new.
Appliances and floor coverings could easily go over 10,000 on a small house. Considering, many do not have that much to put for their total down, you can see why the banks are sticky on the homes needing lots of repairs.
We have been in Val Vista and really like it , but we think the desert areas are cool too. We see the appeal of both areas visually. Lots more research to do if my husband is offered the job he just interviewed for, and I hope he is!
We feel badly about the number of people who have lost value in their homes over the last few years, but it does offer an opportunity for people who have been thinking about moving to a more expensive area to do so. We would probably break even on the home we built here in IN 5 years ago, when we imagined having a profit if we ever sold. We would take a small hit on our home here to buy in at a very good value there.
So even though the flipper mentality is not our MO, we want to be well informed about where to buy and what to buy in the Phoenix area. There is quite a number of houses that would work for us available, so why not be smart?
I am not sure a waterfront property is for us, but thats good advice. Can you kayak on the Val Vista lakes by public access? That would be awesome.
One thing that really bothers me is that people like us, able and willing to remodel a distressed property in a nice family area and then LIVE in that property with our family for a good long time, are unable to easily BUY those properties. It seems that the investor with cash in hand or time to wait for banks to fart around on Short Sales are getting all the good deals and then flipping or renting the homes . No offense to investors, but it would be SO much better for the neighborhoods if families bought those short sales to help out other families or if there were loans made on foreclosures with remodeling loans added on so that average people could buy the foreclosures, remodel them with loans specifically for renovation and then live in them for a specified (say3 ) number of years.
We would be happy to buy a foreclosure or short sale and renovate it, and then not flip it but live in it.But the headaches the banks make in getting the loan, accepting the offer might prove too much stress for a family like us....
I completely agree. Investors are only here when money is to be made and bail when it can't. Owner occupants would help keep values more stable. Investors aren't actually reducing inventory by buying and reselling, but owner occupants actually take a home off the market. Less supply will help to raise home prices.
Homes will be vacant until they are sold no matter what, so to say you prefer an investor owned property to a vacant home doesn't make sense. An investor will either resell the home for more, or put a tenant inside... so the only difference is whether or not a middle man owns it before the longer term resident moves in.
Why is that a positive and what difference does it make? If the investor is buying it as a rental, thats actually not good news for the homeowner next door, Adolpho.
the investor will pay his taxes and hoa fee. He will secure the house. He has a vested interest in keeping it in good condition. He can provide a home for those that can't/shouldn't buy. Reducing vacancies will enable lenders to come back in and loan. The investor will put back the appliances that were removed..................
Perhaps you would be more comfy in a nice government owned housing project. Don't worry, the only investors will be kids on welfare buying and selling crack rocks. No worries about declining values, either; as they will always be a liability.
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. I can start a new post, but if anyone wants to offer their 2cents it would be appreciated...
