I am new to the board, and I was just looking for some direction on investment property, which I am also new to. I live in the Phoenix AZ area. The housing market has really gotten satutarated and builders are basically dropping their pants for potential buyers. I will give you an example, the first development we went into was offering between 65,000 and 85,000 dollars in incentives. My question is how can they do this? When the resale house right next to it is trying to sell for nearly 120,000 dollars more then what I will be paying. So any help or direction would be appriciated. Should I jump on the this house or should I wait? Has Phoenix bottomed out, and do you think it will rebound soon?

Thanks

I'm on the East Coast in a resort town and I don't think we have hit bottom yet. All I see is price reductions, homes staying on the market forever, and pissed off sellers who thought they were going to make a killing when they went to sell.

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Michael Brown REALTOR®
REHOBOTH BEACH CONDOS & TOWNHOMES| REHOBOTH BEACH REAL ESTATE |REHOBOTH BEACH MOBILE HOMES

"Bottomed out" This term is a bit confusing to me as used by the "experts" and the not so expert (not implying anything to the original poster).

IMO:

It is the so called "experts" that have created the current state of mind of inexperienced buyers and investors. "Don't buy now", "It's a bad market" and so on, etc etc... These "experts" have not created the current state of the market, greed has done that very well.

My point of view is this: While the interest rates may not be what they were over the past several years, they are still below 10%! When I started investing, my first property had an interest rate of 10.5! I thought I was getting a deal! I have a friend who purchased his first property with a 14% interest rate!

While it is true that there are over priced properties on the market everywhere, there are still alot of good deals to be had. It comes down to running the numbers, if they work for you and fit your investment strategy and goals, it's a good investment. Do your homework!

You have to analyze what you are looking for, your goals, your finances, the ROI you expect and so on.

While "flipping" may not be as attractive a way to make a quick buck as it has been, it still can be. You just have to set your expectations a little lower. Maybe you won't be able to make $100k in two or four weeks, but if you can make $10k a month on 10 flips reasonably priced for 10 months, there's your $100k. That's not a bad investment strategy for a novice!

The deals are out there, they just have to be found and you have to work to find them.

I don't know the market in your area of Phoenix except from what I have read in the rags, but rental properties continue to be good investments in most areas as interest rates rise and push more people back to renting, commercial properties continue to yield good returns.

I used to consult in Phoenix for Motorola a few years back. Interest rates were around 9% and housing prices were about $26 a sq. ft. Scottsdale a bit higher. I was dying to buy a home out there, but it wasn't meant to be. It's a great city with an incredible amount of growth over the past several years. It's not going to stop growing. The job market is still good, people are still moving there from the higher property valued (or should I say inflated!) areas like California (I lived there for 28 years).

IMO we are in a stable market now, not a buyers market not a sellers market, not a market to shy away from.

It's interesting to me the number of realtors in my area that complain they aren't selling as much as they used to and are hurting. "Business is bad" they say. I love them saying this to the same people I keep selling houses to. When I am asked "how is business", I simply reply.. "It's great" or "I hear the real estate market it bottoming out" my reply... "Hmm, I wonder why I am so busy then!"

IMO, these whiners and complainers are hurting, because they forgot how to sell and market and work for a living. They got fat and lazy during the past several years market, and now the rest of us who are working the new markets, old markets hard, etc., are still able to eat, buy clothes, take a day off and enjoy it and make a good living. Not a get rich living, but a good living just the same.

Please don't misunderstand, I am not generalizing. Cudos to those old time Realtors who know how to work a market. There is so much to learn from them.

Some of the wealthiest people in the world have gotten there because of real estate. Smart investing will always make money. Real Estate is a limited commodity, there is only so much land to be had.

Run your numbers, if the numbers work for the property you want to buy, but it before someone else does. I personally don't look at new houses as investments, but that is my strategy and has nothing to do with what your strategy or goals are.

Good luck though. This market is here to stay. You can always look outside of Phoenix if you're that worried.

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Jessie: Panama City Beach Real Estate, Panama City Real Estate and Panama City Beach Condos

Sheesh, my apologies.

I got so carried away with that post I didn't realize how long it was.

Sorry everyone

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Jessie: Panama City Beach Real Estate, Panama City Real Estate and Panama City Beach Condos

No need to apoligize...I enjoyed reading it.

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Convey Real Estate | Virginia Beach Real Estate | Virginia Beach Homes

It was a good post realy Jessiesc

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Jessie, you did an excellent post. With my sellers that are investors - we are approaching things from a return on equity, so that we can price properties very competitively and move them. A consultative approach to real estate goes a long way in today's real estate market.

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Glenng

Specializing in residential Naples Florida Real Estate, Bonita Springs, and Estero

Hope that I'm not coming to this thread too late... JessieC, I enjoyed your post too.

The basics of RE investing and selling haven't changed. I think that they were just really out of whack the past few years, and now they are starting to stabilze to normal, where a little elbow grease can make all the difference.

For investors with Cash, I think that we are going to be coming into a great purchasing market. Potentially tough to get financing and a lot of product available on the market.

Just part of a cycle.

One last thing... I think that it will be good for the business, because a tough cycle cuts the fat from the industry where people will reward service and hard working professionals, again.

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