# Arizona Real Estate



## Square Root (Jan 30, 2010)

We are currently renting a house in Paradise Valley Arizona which is a very upscale part of Phoenix. While here we have been looking at houses for sale as we are really enjoying the weather and ambiance here. 
There are a couple of things that really stand out: 1) The unbelievable overinvestment in realestate that went on over the past 15 years. The houses here are typically on 1 acre lots, have 6-7000 sqft, 3-6 car garages, pools, spas, and sometimes built into the side of mountains for fantastic views.
2)The willingness of Americans to over leverage their homes. The guy we are renting from has a $2.7million dollar mortgage which he can't pay.
3)The absolute collapse of the market has reduced prices by at least half. A nice place here will still cost $1-2million but seems to be falling still.
My conclusion would be: Even good real estate can drop in price. Don't borrow for luxury homes, Canadians are more conservative than Americans(I knew this before)


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## jcgd (Oct 30, 2011)

Square Root said:


> My conclusion would be: Even good real estate can drop in price. Don't borrow for luxury homes, Canadians are more conservative than Americans(I knew this before)


They are?


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## canadianbanks (Jun 5, 2009)

I'm not exactly sure if Canadians are more conservative than Americans . It's easy to look conservative on the long side of real estate while the market is rising, but once the inevitable RE correction hits Canadian shores we'll find out how conservative we have been...


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## kcowan (Jul 1, 2010)

I have an acquaintance who just bought his 3rd house in Phoenix. It cost $55k and will be easily rented. Many people can no longer qualify for mortgages so rental is their only option. These are not snowbird properties.


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## m3s (Apr 3, 2010)

Square Root said:


> My conclusion would be: Even good real estate can drop in price. Don't borrow for luxury homes, Canadians are more conservative than Americans(I knew this before)


At least in Arizona they're building nice houses in the side of mountains. In the GVA and GTA people are paying millions for old shacks and cramped condos. I hear in the States though there are entire suburbs of nice houses being destroyed by cockroaches


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## peterk (May 16, 2010)

Wow. Just cruised around Realtor for a few minutes. 100k will get you this!
I don't know if there's any risks/obligations to the buyer of a short sale, but dang that's a good deal.

There's also tons of slum apartments that are selling for ~20k and claim to bring in 500/month rent. Quite the opportunity for those with cash in the area...

The homes Square Root talk about also look AMAZINGLY ballin' for 1-2 million. SR are you in one of those mountainside homes backing onto Echo Canyon?


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## Square Root (Jan 30, 2010)

peterk said:


> Wow. Just cruised around Realtor for a few minutes. 100k will get you this!
> I don't know if there's any risks/obligations to the buyer of a short sale, but dang that's a good deal.
> 
> There's also tons of slum apartments that are selling for ~20k and claim to bring in 500/month rent. Quite the opportunity for those with cash in the area...
> ...


we are in a mountain side home on Mummy Mountain. Waterfalls down the mountain, over 7,000 sq ft, 7 baths, 3 car garage, pool, spa, fire pits, etc. really getting to like it here.


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## the-royal-mail (Dec 11, 2009)

Square Root said:


> Even good real estate can drop in price.


According to "Montrealer" the only direction RE is headed is up!


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## drip99 (Aug 27, 2009)

peterk said:


> Wow. Just cruised around Realtor for a few minutes. 100k will get you this!
> I don't know if there's any risks/obligations to the buyer of a short sale, but dang that's a good deal.
> 
> There's also tons of slum apartments that are selling for ~20k and claim to bring in 500/month rent. Quite the opportunity for those with cash in the area...
> ...


Can someone familiar with the real estate situation in Arizona comment on this house. It sold for $286,000 in 2006. Now it is listed for $100,000 which is very cheap. What is the catch here? Bad area? House in rough shape?


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## sags (May 15, 2010)

Lots of problems with some of these homes.

Empty neighbourhoods, lack of protective services, lack of jobs, lack of mortgage funding, and perhaps the biggest factor.........the housing market is still falling. Some of these "deals" today may not look so good in the future.

This particular home has been on the market for 54 days already.

I wonder this..........Americans are known to be more risk takers than Canadians. 

Lots of Americans do have the means to purchase homes and rent them out. There are huge pools of cash looking for a place to earn a good return on their capital.........and none of them seem to be buying up "bargains" to rent out.

What would Canadians know that they don't?


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## kcowan (Jul 1, 2010)

peterk said:


> Wow. Just cruised around Realtor for a few minutes. 100k will get you this!


 How about 4 BR, 2 baths for $48k?Or 3 BR, 3 Bath for $44k? Less than the cost of a used motorhome!


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