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Why I Won’t Be Buying A House
By Max | August 11, 2007
People are always asking me if I have bought a house here in AZ. Its actually starting to get old. I don’t plan on buying a house in Arizona. Here’s why:
1. Houses are too damn expensive in Arizona. I really believe prices are unsubstantiated here and will likely fall by 20% or more over the next couple years. I don’t know who they think will be buying these overpriced things, but I imagine people who purchased over the last year or two will be disappointed when they realize how much their home is worth 2 years from now.
2. I don’t plan on staying in Arizona forever. I got lucky to have made as much as I did when I sold my house last year. The next time I buy a house though, I want to make sure I’ll be there for awhile.
3. The whole buying and selling process stressed me out a little too much. I had some expensive maintenance costs along the way too. I definitely felt a little trapped by owning a house. I didn’t like knowing that I was tied to a particular area and that I needed to keep my job to be able to make the payments.
Here’s a chart of the Phoenix real estate market…
Topics: Investing, Max | 5 Comments »
August 12th, 2007 at 3:28 am
Doesn’t matter how much its worth in two years if you are staying for 20.
Over time, RE goes up! It’s magic, isn’t it?
I happen to live in one of the wildest RE markets in the world…Vancouver…so I feel your overpriced pain.
Here are some numbers (courtesy of Rob!) if you ever decide to kick it up here: http://rireb.wordpress.com/
August 12th, 2007 at 3:50 am
Wow, those are some crazy prices. I actually have been thinking about moving to Vancouver sometime. I think it is the only city in Canada where I could handle the weather. I lived in Portland for 5 years, and I think the weather is similar there, but a little colder right?
The US has some big problems as far as health care. You basically have to have a full time job, and as you may know, that is not my goal.
How difficult is it to become a Canadian citizen or permanent resident?
August 12th, 2007 at 8:29 am
You should have become a doctor and then you could provide your own health care…
I think your apartment situation sounds better than any house you could buy anyway.
August 13th, 2007 at 4:26 pm
Well, I’m in the same Phoenix boat, and I agree 100% about not buying into this market. The big wave of sub-primes that were written in 2005 and 2006 haven’t yet begun to adjust, for the most part. That starts this fall. THere was an interesting interview with Kramer on u-tube, talking about how, when people have lost all their equity, if it’s cheaper for them to rent, they’re better off walkign away from their houses and renting, and letting the bank foreclose. I think there’s going to be a massive wave of foreclosures on the horizon, in the next year or two. That’s going to cause a glut, and severe readjustment of pricing in over-priced markets, like Phoenix. A good time to buy real estate here will be in 2-3 years, probably for investment as well as residence. People will still need (to rent) a place to live.
August 15th, 2007 at 11:27 am
Home prices in MANY U.S. markets are significantly overvalued. I see a large correction.