Arizona Real Estate

[Danmar]

Just got back from Scottsdale Arizona. Had a great time and the weather was perfect. While there we looked at a couple of homes for sale. Could not believe the values. 5,000 square feet and up for under $1million in really upscale areas. Have rented a house for next fall. It is over 7,000 square feet. It is hard to understand the incredible over investment in real estate in Arizona over the past 10 years or so. The current deals will be hard for Canadians to pass up, ourselves included.

 

[Meadbh]

I'm tempted myself, but my life is complicated enough with six properties in Canada! (Though I will be selling one of them in the near future). In any case, I would not be buying anything for $1m. But do go ahead, Danmar; you can afford it!

What about buying a fractional property?

 

[Danmar]

Don't think fractional ownership is the way to go. There have been some threads here that confirm my view. The more places you have the less use each place gets and we would still want to travel to other places a fair bit. We will see.

 

[kcowan]

Have rented a house for next fall. It is over 7,000 square feet. It is hard to understand the incredible over investment in real estate in Arizona over the past 10 years or so. ...

What are the rental rates like?

 

[Danmar]

What are the rental rates like?

$20k/month House is listed for $3.4million but no takers at that price.

 

[deserat]

Yup - grew up in AZ and realize right now it is a buyer's paradise, although what you are looking at is a bit rich for me Scottsdale is nice - what area? I lived there in the 70's-80's lots of space, not so much anymore.

 

[calmloki]

Did you get a chance to look at Carefree, a bit north of Phoenix? The country around the houses was just a knockout and the places were pretty much all custom designed to fit their surroundings. With your budget you could get a pretty decent hutment.

Samples:
Homes.com - Real Estate and Homes For Sale.

 

[Danmar]

Renting in Paradise Valley. Very nice area. Looked up around Troon as well but seemed a little too far from urban infrastucture for us. Also Paradise Valley is a lot closer to the airport. Seems like every second house is for sale.

At first glance, Carefree doesn't look any less expensive than Paradise Valley? Given it's location I would have thought it might?

 

[calmloki]

When we went through it was pretty much awesomely expensive - other than the rocks and view and maybe the comparable/compatible net worth of your neighbors I don't know why it is so spendy. We were looking for a place well south of the amounts that were being asked, but dang the places were nice to drive by!

 

[Nords]

... but dang the places were nice to drive by!

Is there such a thing as rockfall insurance?

 

[bssc]

According to this article, Canadians have bought $300 million of Arizona real estate. I expect a Tim Horton's to open up near me any day now.

 

[Danmar]

According to this article, Canadians have bought $300 million of Arizona real estate. I expect a Tim Horton's to open up near me any day now.

Thanks for the article. How appropriate for his thread. It really does seem like they are half price. The exchange rate helps by another 3-5%. Not only are the high end houses relatively cheap they are so well contructed and distinctly designed in most cases. Very different from what we are used to in Canada and gives them added value as vacation properties. Taxes are quite a lot less than Florida I think. I suspect also that Florida prices may have held up a little better. The value in Arizona does seem very high.

 

[Moemg]

. I suspect also that Florida prices may have held up a little better. The value in Arizona does seem very high.

It is amazing the amount of very high priced real estate in Florida that is in foreclosure . Some of the bargains are truly mind blowing . Buy a house on Casey Key & Stephen King will be your neighbor or buy in the Oaks of Sarasota and play tennis with Monica Seles.

 

[Brat]

Other than the fact that genetically a sunny climate is not my lot, what concerns me about AZ is water. As any westerner can attest booze is for drinking, water is for killing over.

 

[zinger1457]

Just got back from Scottsdale Arizona. Had a great time and the weather was perfect.

Before dumping a load of money on a place in the Phoenix area you should definitely spend some time there during the not so perfect weather season (May-Sept) and see if you can handle the heat.

 

[packrat44]

Before dumping a load of money on a place in the Phoenix area you should definitely spend some time there during the not so perfect weather season (May-Sept) and see if you can handle the heat.

When you purchase a house you do not need to live in it year round. I believe Danmar is were-heeled and a place in Arizona would be strictly a winter escape from the long northern winter.

DW and I purchased a small house south of Tucson that was a foreclosure . The price was modest enough to use it for less than 1/2 year without breaking the bank. Nearly half the people in this community are snowbirds and spend less than half the year in Arizona.

The weather does get hot in the summer and is not suitable for many northerners. The predicted high for Thursday and Friday is in the upper 90s..It is time for us to fly north.

 

[Danmar]

Yes, this would be our fourth place and we would probably spend about 75 days a year there in the fall and spring. Is the water issue something that might effect us in the next 20years?

 

[packrat44]

Yes, this would be our fourth place and we would probably spend about 75 days a year there in the fall and spring. Is the water issue something that might effect us in the next 20years?

Water is becoming more of an issue with each passing year. The city of Tucson has a big push for people to use desert landscaping rather than lawns like up north. I am very surprised Phoenix is not following suite.

 

[bssc]

Before dumping a load of money on a place in the Phoenix area you should definitely spend some time there during the not so perfect weather season (May-Sept) and see if you can handle the heat.

That's the time of year you go to Canada.

 

[bssc]

Water is becoming more of an issue with each passing year. The city of Tucson has a big push for people to use desert landscaping rather than lawns like up north. I am very surprised Phoenix is not following suite.

Tucson and Phoenix get water from different sources so they have different plans. Flagstaff though, probably has the most issues. Phoenix, on the other hand, is trying to plan for a 100 years supply

 

[packrat44]

Tucson and Phoenix get water from different sources so they have different plans. Flagstaff though, probably has the most issues. Phoenix, on the other hand, is trying to plan for a 100 years supply[/QUOTE

I fully understand that Phoenix and Tucson acquire their water from different sources. However, it appears there is a higher percentage of houses in Phoenix maintaining green grass. In Tucson that is an extreme rarity. There is the appearance that Phoenix residents have less concern regarding water conservation - which is strange when you live in a desert community.

 

[MasterBlaster]

$20k/month House is listed for $3.4million but no takers at that price.

at 5% APR a 30 year mortgage of $3.4M comes in at ~$18.25k/month.

property taxes, insurance and maintenance are extra though.

 

[deserat]

Tucson and Phoenix get water from different sources so they have different plans. Flagstaff though, probably has the most issues. Phoenix, on the other hand, is trying to plan for a 100 years supply[/QUOTE

I fully understand that Phoenix and Tucson acquire their water from different sources. However, it appears there is a higher percentage of houses in Phoenix maintaining green grass. In Tucson that is an extreme rarity. There is the appearance that Phoenix residents have less concern regarding water conservation - which is strange when you live in a desert community.

Yup -I've lived in Phx (Tempe) and Tucson - was in Tucson when they changed from aquifer (sp?) to CAP water - YUCK! Yes, Phx is obsesses with midwest-like green lawns and 'water features" - huh? In the desert? Tucson tends to minimize that - I had even in my little house a desert landscape - indigenous plants and rock....and weeds ;-)

Water is a big issue - not just in AZ but all over the southwest and CA-and energy - there was a large renegotiation over energy from the Hoover damn whichis shared between four states...most of the energy flows towards SCAL, but the other states wanted more of their fair share.

I love AZ - grew up there and hope to end up there - however, I would not grow green grass, would plaster the house with solar and work on minimizing water usage. Actually, if you go into old adobe house, you see how good design using the benefits of the local environment can significantly reduce your energy usage while allowing you to be quite comfortable. Moreover, if you change your habits wrt when you are active outside, it makes a difference. Early morning and evenings are beautiful being out - midday is time for hibernating inside or in the shade.

 

[Pegcarddave]

I bought a second-home foreclosure in Scottsdale in late 2009 at 45% of the 2007 selling price. Thougfht I got a good deal then, and I think prices have fallen even more. Don't count on renting when you are not there - too many homes for rent, not enough renters. This was my first shot at a second home. Purchase price was attractive, but didn't fully anticipate the cost of decorating, furnishing and maintenance. Still happy with the decision, but it does cost more than I thought. I was also intent on having my own pool. Turns out that without a pool heater the water is too cold to swim in except for the months that are too hot to be there anyway. Pool heaters are expensive to buy and operate.

Just some food for thought.

PS Carefree and Cave Creek are great places to look at homes.

 

[HFWR]

"Phoenix: Valley of the Sun". More like "surface of the sun..."

If you buy a house for, say, $1M, because that's what the market is, is it really "half-price"?

I think water is going to be an issue in lots of the southwest.