Thinking Of Selling The House And Renting

[FUEGO]

IMO condos with smaller associations (fewer than 100 units) are a colossal PITA-- the gene pool is too shallow for professional management and there's too many petty tyrants. Far better to be a condo renter than a condo owner.

It's taken me years to realize that homeowner's associations are actually insurance companies. They exist to suck money out of your pocket, and in exchange they promise to maintain your property value. Their finances are usually difficult to comprehend and they always seem to want more money for less service. Depending on the quality of the company and their exclusions, you may or may not get your money's worth. They're certainly not your friend, although they'll happily accept your volunteer labor, and they can be a tireless enemy.

A condo where we used to live 20 years ago has put their newsletters online. One of them discussed their recent "assessment" issues, including the cost of a professional animal-control contractor to trap the wild raccoons rampaging through the property. I would've been more sympathetic if that column hadn't been right next to their ad for the upcoming community BBQ...

Agreed about the pains of HOAs. Ours was 135 units. There were a few heavyweights that owned 6-7 units each. They dominated the board and ran things how they wanted to since they each owned ~5% of the total votes or ~10% of quorum votes. These folks happened to be penny pinchers so it worked out pretty well financially for us since expenses were kept to a minimum. But we got out and I have no idea how the issues of "deferred maintenance" have caught up with them.

I also realized the OP here is talking about owning a single family house vs. RENTING a condo/apartment I think. So the issues of dealing with an HOA are a little less (although the "good neighbor" rules imposed by HOA's still impact you - ie where you can install satelite dishes, how many potted plants you can have outside, accceptable type, quantity and colors of patio furniture, etc).

 

[charlie]

In my Walter Mitty life I still fantasize about selling the house and buying an RV. If the life suits you, you could live a lot cheaper and roam to your heart's content. Eventually, you would need to settle down some place,
but in the meantime you could have a ball. In my real life, I just don't have the energy for that lifestyle anymore and I could never pry Lyn away from her garden.

Cheers,

charlie

 

[tuixiu]

Ditto Charlie. From what I've read the RV fantasy is common among people on this board.

 

[Notmuchlonger]

Ive been on the road for a few weeks now be about 4 weeks when its done. Im ready to go back home. I think I got my travel bug filled for awhile.

 

[REWahoo]

Ditto Charlie. From what I've read the RV fantasy is common among people on this board.

There are a few here who have turned their fantasy into a reality. Audrey1 comes to mind...

 

[MasterBlaster]

If you haven't seen this website, George is a cancer survivor. He prayed that if he lived through his ordeal that he would get out, see the world, and really live.

The Adventures of Tioga and George


I believe that he got his wish.

 

[Zoocat]

The main issue for me after moving from a house to a townhome has been the close proximity of neighbors. Mine are ok, but I have found that giving up my relative privacy has been annoying. With annoying neighbors, the situation would be intolerable.

 

[NW-Bound]

Hell you don't even need a mfg home these days, go buy a relatively nice one for $60k in Queen Creek or Maricopa.

What tiuxiu said.

The housing bust hit these new areas of Arizona hard. These are boom towns that are 45 miles from the metropolitan center. But if you are retired and do not have to go to work, then it doesn't matter. I am not really familiar with Maricopa (the town, not the county), but have driven through it on a couple of occasion and did not think the area was that bad. These are new developments with new shopping centers and shops. Prices have crashed from $100-$150/sq.ft down to $35-50/sq.ft.

Search RE Web sites for "Maricopa, AZ" or ZIP code 85239. Come on down! If it weren't for the commute distance to go to work, I would help my daughter buy a 1700 sqft home there. They are so cheap.

 

[FANOFJESUS]

What tiuxiu said.

The housing bust hit these new areas of Arizona hard. These are boom towns that are 45 miles from the metropolitan center. But if you are retired and do not have to go to work, then it doesn't matter. I am not really familiar with Maricopa (the town, not the county), but have driven through it on a couple of occasion and did not think the area was that bad. These are new developments with new shopping centers and shops. Prices have crashed from $100-$150/sq.ft down to $35-50/sq.ft.

Search RE Web sites for "Maricopa, AZ" or ZIP code 85239. Come on down! If it weren't for the commute distance to go to work, I would help my daughter buy a 1700 sqft home there. They are so cheap.

And I thought MO was cheap but you guys in AZ have better deals. Are those ones in the 60k-70k in a safe area?

 

[DangerMouse]

I would think seriously about how much you enjoy packing/unpacking if you do rent. We are long term renters and for the first time in years we are living in a private rental, previous apartments were complexes owned by big companies.

However after only being in our current house for a month I am concerned as to the intention of the owner. Moving is the biggest pain in the butt, connecting/disconnecting services, packing all your belongings and then the drama of unpacking at the other end, none of it is fun. Add in the stress of finding somewhere new to live and it's not relaxing at all.

If I was living in a house I enjoyed in a location that made me happy there is no way I would look at selling unless financially I had no choice.

 

[NW-Bound]

And I thought MO was cheap but you guys in AZ have better deals. Are those ones in the 60k-70k in a safe area?

As these are away from the metropolitan, there aren't many transients and homeless. I would think these areas are safe, having not seen much in the news regarding violent crimes. However, there may be higher property crimes due to vacant houses being broken in.

A main reason these areas crash hard is the overbuild. During the peak of the housing bubble, people from all over the country came to buy in these areas as investment as they were hyped by builders and realtors. Some out-of-state realtors even organized trips for people, to combine a vacation with a house-buying trip . The buyers have no idea of the local demand, or how long a commute would be for people who still work. All they saw was new houses being snatched up like hot cakes.

It was pure mania. A friend of my mother came in from Washington DC to buy one in Anthem, another boom town. My mother got very excited and told me how we locals missed out on these "investments" , while the out-of-towners were getting rich. That was 3-4 years ago. Last I know, her friend's house is still on the market. As an article in Wall St said then, "It will end up in tears".

With time, these areas will develop local economies and will start to fill in. The question is how long. Meanwhile, what do retirees care? There are already local shops and grocery chains in the area. You are not really in the boonies, although there are no major employers there. At $35/sq ft, you've got a roof over your head, and the houses being new will not need maintenance for a while.

 

[FANOFJESUS]

Thanks NW- Bound

 

[NW-Bound]

You are welcome, Rec7.

For anyone who is interested or just curious, the Queen Creek area mentioned by tiuxiu can be look up on REALTOR.com as Zip Code 85243.

Just now, I saw a 3br/2ba listed for $57K, with condition claimed to be "ready to move in", with photos. Amazing!

I remember my first AZ home out of college, bought in 1980. It was 4br/2ba at 1850 sqft. Purchase price was $64K (1980 dollars). The median household income (also in 1980 dollars) was $21K. The median income is $50K now, I think.

A disclaimer: I do not work in the RE business, nor know anyone who is in it. I am also not affiliated with any state/county/city/municipality agency in Arizona.

 

[tuixiu]

Here's some retirement diggs in Queen Creek, 1999, 2 BR 2BA for $42,900.

30712 N Maple Chase Drive, Queen Creek, AZ, 85243 - MLS ID#4163680 - Single Family Home real estate - REALTOR.com®

Hell for $43k someone who can't stand their in-laws could even buy that as a remote guest house, what would the mortgage be $250/month? Or if you argue with your spouse a lot have this as a backup so you could yell in a haughty tone "Fine, I'll be spending the evening in the East Cottage."

 

[FUEGO]

Those are some amazingly cheap properties. Looks like there are other ones for sale in the same neighborhood for similar prices. Including a 4 br, 2 ba asking $54000. The commute would be bad I guess - no freeways nearby, and Hunt Highway looks like a dinky 5 lane road if you are headed into town. Not bad though for a base pad if you travel a lot I guess? I'm showing 46 miles and 71 minutes to get to downtown Phoenix (near the airport).

I noted a few houses in that area that are asking 2x the price for basically the same house, but they have been on the market for many months. I guess they still haven't faced the reality of a glut of houses selling for next to nothing. Wonder what these houses were going for a couple years ago at the peak?

So it's still a dry heat out there, right? I might have to look into relocating...

 

[Notmuchlonger]

Whats the catch? I dont see bullet holes in the house.

 

[FUEGO]

Whats the catch? I dont see bullet holes in the house.

Yeah, I know! Looking at the streetview photos from google it looks like a fairly nice, well polished neighborhood. And on a golf course at that. Obviously way the heck out in the boonies, but not a bad n'hood.

 

[FANOFJESUS]

Here's some retirement diggs in Queen Creek, 1999, 2 BR 2BA for $42,900.

30712 N Maple Chase Drive, Queen Creek, AZ, 85243 - MLS ID#4163680 - Single Family Home real estate - REALTOR.com®

Hell for $43k someone who can't stand their in-laws could even buy that as a remote guest house, what would the mortgage be $250/month? Or if you argue with your spouse a lot have this as a backup so you could yell in a haughty tone "Fine, I'll be spending the evening in the East Cottage."

What do you guess the AC bill would be a month? How many months a year do you run AC in AZ?

 

[tuixiu]

We had a single family home that was larger than this one and the level payment plan electric bill was $150/month, as in that's the average for the whole year. That can be $250 in August and $70 in November.

Now in a townhome the level plan is $130/month. That's no kids and thermostat automatically going up to 85 during weekdays while both working.

Generally speaking in the Phoenix area you run the AC from May thru Sept, with March/April/ October depending on the weather. Right now we run it during the day but as soon as the sun get lower we shut it off and open the windows.

Interestingly Queen Creek was #1 for foreclosures/house in the entire country in a recent Forbes article.

America's Most Foreclosure-Ridden Towns - Forbes.com

Assume direct relation there eh.

 

[FUEGO]

I guess no gas heating bill though, huh? Sounds like the total heating/cooling energy requirements may not be significantly more than where I am now.

 

[NW-Bound]

My house is 2800 sqft. I cannot use the thermostat setback during the day because there is always someone at home. No gas, so electric is also used for cooking. Heating is by heat pump. Temperature is set at 78 degF in the summer, and 70 degF in the winter. Two college-aged children take long hot showers, and tend to leave their PCs on. AC/Heat pump (5 ton) is relatively new with SEER of 12. Diving-pool pump running 8 hrs/day. Lots of home cooking as we do not like to eat out much.

Electric Bill = $2456 in 2008. Details can be found in this post.

...

 

[tuixiu]

We're no gas too.

Creates a so-far unsolvable problem for using a wok properly.

 

[HFWR]

Last year, gas + elec = $1900.

Gas heat and hot water; everything else electric, in a 1650sf shack in north Tejas.

Big a/c bills July-Oct...

 

[NW-Bound]

We're no gas too.

Creates a so-far unsolvable problem for using a wok properly.

Not so. I bought a burner similar to the enclosed picture many years ago to do Cajun-styled blackened fish. Later, found out it was also great to stir-fry Oriental style. You want to do the above two dishes outside anyway, to avoid smoking up the house, no? I wonder what kind of gourmet kitchen one needs to be able to do the above indoors. One more nice thing about living in the low-country part of AZ is that you can cook outdoors all 12 months of the year.

 

[calmloki]

Youze guys have got me going - 5YO homes with pool for $75k? Looking at the ads for Queen Creek and Buckeye - Buckeye is 259 miles from 29 Palms - a 4.25 hour drive sez mapquest. About $56 worth of gas round trip. If we lived there in the winter we could save maybe $400/month in airfare for the gal to drop in on Mom every month. Plus be in Az when utility costs are low and Oregon ditto + when it's pretty. Sunshine and warm in the winter? Sounds pretty good to me! Can't imagine those overdeveloped areas will become ghost towns....

Not real jazzed about the flat skillet/sprawl that in Phoenix, but appreciate having a Costco within driving distance - also thinking about Nevada for the tax benefits, but don't really think my personality matches up with Las Vegas. We want to be close to an airport hub like PHX or Las Vegas. Other town suggestions?