# Arizona Real Estate



## Square Root (Jan 30, 2010)

Just got back from Scottsdale Arizona. Looked at a couple of houses while there. The deals look unbelievable. 5-6000 sq ft houses in very desirable neighborhoods going for under $1million. With the exchange rate??? The weather was perfect. I wonder if this is a great opportuniy??


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## brad (May 22, 2009)

A great opportunity (we've been considering buying a place in Tucscon for vacations and maybe some winters during retirement), but in the long term the Southwest is likely to face serious water shortages and I wouldn't be surprised to see a mass exodus in the next 20-30 years. All indicators are pointing to increased risk for extended droughts in the Southwest, and by "extended" I mean many decades or even centuries.


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## I'm Howard (Oct 13, 2010)

Wow, Number Two Son also in Scotttsdale this week, also looking at RE, blown away when compared to TO prices, but are you catching a falling knife??

I could buy a much more substantial winter home than we have, but it is still a foreign country and they can still refuse you entry.


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## sags (May 15, 2010)

I'm Howard said:


> I could buy a much more substantial winter home than we have, but it is still a foreign country and they can still refuse you entry.


Good point.


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## Homerhomer (Oct 18, 2010)

I was looking for an investment property in AZ (which could later became a retirement place), but decided that investing locally (or in equities) is better option, and renting a place whenever I feel like going there is much cheaper than owning it all year long (and worry free ;-).

My personal view is that significant capital gains won't be happening there for a while ;-)


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## clovis8 (Dec 7, 2010)

My father just bought a two bedroom condo in Scottssdale fully furnished including every dish, tv, wall art everything for 37k.


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## Addy (Mar 12, 2010)

clovis8 said:


> My father just bought a two bedroom condo in Scottssdale fully furnished including every dish, tv, wall art everything for 37k.


Incredible price! How much are the condo fees? What do the fees include usually?


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## Square Root (Jan 30, 2010)

When we invest in real estate for personal use, we effectively write it off. Do not expect to sell or get anything back. Never viewed as an investment. Agree that it is cheaper to rent but that is also a hassle. Need to find the right place, negotiate a deal, etc. We have rented a beautiful place in Paradise Valley for a month and a half this fall to see if we like "living" there. Will see how that goes before deciding what, if anything else we do. Still need to understand US estate tax rules. A place in Arizona would be our 4th home so certainly diminishing marginal returns re usage.


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## clovis8 (Dec 7, 2010)

Addy said:


> Incredible price! How much are the condo fees? What do the fees include usually?


$130/month for condo fees.


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## Calgary_Girl (Apr 20, 2011)

To us, it's not worth the hassle of looking after two properties - our regular home plus a vacation home. We would much rather rent a place, rather than buy it, and let someone else worry about paying the property tax, insurance, and handle all of the repairs that come along with home ownership. Plus, that way we don't feel like we always have to vacation at our vacation property. We have friends that have a condo in Invermere and they never travel anywhere else besides to their condo since they have invested so much into it.


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## Square Root (Jan 30, 2010)

Calgary_Girl said:


> To us, it's not worth the hassle of looking after two properties - our regular home plus a vacation home. We would much rather rent a place, rather than buy it, and let someone else worry about paying the property tax, insurance, and handle all of the repairs that come along with home ownership. Plus, that way we don't feel like we always have to vacation at our vacation property. We have friends that have a condo in Invermere and they never travel anywhere else besides to their condo since they have invested so much into it.


Yours is a valid approach. We travel out of country about 60-70 days a year even with our 3 current places. Being retired helps. We enjoy the sense of ownership and don't view maintenance or repairs as a hassle. We hire people to look after our places. There is something special about pulling up to your own place with your cars in the garage and your clothes in the closets. To each their own though.


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## realist (Apr 8, 2011)

I have heard similar stories from friends of mine about both Florida and Arizona, but I have also heard anecdotal evidence of hugely high vacancy rates. Including one neighborhood where the owners agreed to take down their for sale signs - there were so many that no one was buying in the neighbourhood. 

I also agree about the water issues. Much of the American south has likely already exceeded its carrying capacity, which will dramatically affect both real estate and other things in the relatively near future.


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## brad (May 22, 2009)

realist said:


> I also agree about the water issues. Much of the American south has likely already exceeded its carrying capacity, which will dramatically affect both real estate and other things in the relatively near future.


See this new report for water availability forecasts:

http://green.blogs.nytimes.com/2011/04/25/a-21st-century-water-forecast/

and

http://www.doi.gov/news/pressreleas...Climate-Change-to-Western-Water-Resources.cfm

Even if you don't believe in global warming, the current trend is toward reduced snowcaps in winter, which translates to lower water levels in reservoirs and rivers that the Southwest depends on for water. It really doesn't look good.


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## Addy (Mar 12, 2010)

For those browsing property in the southern states, what websites do you use? Is there an equivalent in the US as our realtor/mls.ca?


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## Square Root (Jan 30, 2010)

I have been using the Movoto real estate site. Works very well. I think the water issues are valid but not likely to effect real estate during our time horizon. Also, as I have said here before, when we buy personal use real estate we effectively write it off in our plans, eg don't expect to realize anything for it in the medium term other than personal use.


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## kcowan (Jul 1, 2010)

Addy said:


> For those browsing property in the southern states, what websites do you use? Is there an equivalent in the US as our realtor/mls.ca?


FSBO.com is one site to check.


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## I'm Howard (Oct 13, 2010)

We paid $30, 000 for a fully furnished manafactured home in a 55 Plus Gated Community, and $420 a month to rent the land, No Property Taxes, $90 a year for license.

We love the lifestyle, the community, all the friends we have made, going back to a place we know will be clean and in a neighbourhood that is safe.

No Pet over 20 pounds so we walk our Yorkie not afraid of a big dog attack.

The week and months fly by, so many activities, lots of choices, Spring Training, beats watching the snow fly and waiting for Spring.

Least expensive way to winter and if a hurricane takes it or you can't come down for any reason, not a whole lot tied up.


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## sags (May 15, 2010)

What about health insurance?

I understand it gets pretty expensive as people get older, or have health problems.


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## Addy (Mar 12, 2010)

I read articles of Arizona "cracking down" on illegal canadians. Why exactly would a Canadian be in the country illegally?


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## sags (May 15, 2010)

Perhaps:

1) Overstaying the time limits.

2) Have a criminal record.

3) Didn't file a US income tax return (if required).

4) I don't know if not having medical insurance would be illegal?


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## Karen (Jul 24, 2010)

sags said:


> What about health insurance?
> 
> I understand it gets pretty expensive as people get older, or have health problems.


I don't know the rules in other provinces, but in BC, we can be out of the province for up to six months per calendar year before we lose our B.C. medical coverage, provided that we maintain a residence in the province. That's one of the reasons that everyone I know who spends winters in the US limits their stay to under six months.


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## kcowan (Jul 1, 2010)

The rules for staying in the US is 183 days calculated as (current year plus 1/3 previous year plus 1/6 year before that) which basically mean that 122 days is the effective limit for your stay (122+ 40.3 + 20.3=182.6) unless you get special provisions by applying. This total includes any day trips to Buffalo or Seattle. If you go on Friday night and return on Sunday, that is 3 more days. Even if you fly through the states, that counts as another day.

The insurance is applied for every year, so if you develop any conditions such as high blood pressure, diabetes or high cholesterol, you will not get insurance coverage. Also, after 65, the rates climb dramatically.

Also if you rent the unit when you are not there, you must file US income tax. If you paint the unit yourself while renting it, you can be denied access to the US. Similarly if you arrange the rental yourself because you are acting as a property manager.


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## sags (May 15, 2010)

Thanks for the info Keith.

It is all these mind numbing rules, along with local ones such as homesteading exemptions etc. that prevent me from even considering buying anything substantial in the US.

Also, there is always the possibility that you will encounter a US border agent who refuses you entry, for no particular reason........they don't need one.

So, I plan to do what a friend of ours did.

He just took off and went to various trailer parks and found a rental. He always said there are plenty of places that people just want to generate a little revenue from. Stay a couple of months and come home.....no headaches.


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## I'm Howard (Oct 13, 2010)

The Rental Game is a crapshoot, if you are going to spend more than three months there, you are financially better off too buy, plus you feel more like a part of the community.

Out of Country Insurance is a MUST, Provincial Plans will only cover you for what they pay, if the charges are higher, you pay if you don't have Insurance.,

A Friend of ours had Heart difficulties while returning home, without His out of Country Insurance He would have had to pay the $60,000 differance between what OHIP would pay and what He was charged.($600 for six months Insurance).



Again, on the Rental been there done that, you could end up in a crummy park with a filthy trailer, and that is from experiance.

Our place would sell for $30,000, the feel inside is a luxury condo, if the Border Guard stops me or a Hurricane hits, ain't the end of the world.


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