House hunting in Phoenix: is it time to consider buying a condo instead?

Buying a home in today’s Phoenix market can be challenging for folks. The West Valley’s low-inventory market has prospective home-buyers on high alert for information on new-listings in their desired neighborhood and price range hitting the market.

Homeownership has long been the paradigm for long-term investment security, and nowhere in the country is this perspective more befitting than Phoenix. But the current market’s deficit of single-family house availabilities has many homebuyers rethinking a condo purchase even if it wasn’t what they initially had in mind.

Photo: https://eastvalleyurban.com/phoenix/stella/

If you’re currently renting a condo in Phoenix, you might want to consider buying it. The advantages of owning compared to renting are many; but not everyone is in a position to buy a condo, even with the advantages that go with the investment.

However, a number of prospective buyers in Phoenix are still debating whether or not a condo purchase would work for them. Some have their sights set on a single-family home with a yard and all the “fixins” that a detached home offers. But the competition for houses in metro Phoenix has cut many contenders out, as bidding wars and rising home prices favors those homebuyers who can and will pay any price.

The situation has prompted many people who entered their home search thinking they’d never consider a condo. But after conceding to giving some condos a “look-see,” a large number of house hunters have been converted,

Condo communities are surprising critics with spacious and modern units, inviting amenities such as luxurious swimming pools and fitness centers, private garages for residents, and even valet services.

If you’re among the home-seekers who remain on the fence about purchasing a condo, here are a few thoughts to add to your deliberation.

Arizona is currently enjoying a record-breaking economic upswing and a solid forecast for continued financial well-being into 2019 and beyond. The city’s population has been growing consistently for years, and forecasters say 700,000 new residents are expected to make metro Phoenix their home by 2020. A strong and growing job market that includes corporate powerhouses like GoDaddy, Apple Group, Inc, Intel, U.S. Airways, American Express, Boeing, PetSmart, and many others, not the mention the plethora of small businesses throughout the area translate to a steady stream of workers in search of homes.

Phoenix’s rapid population growth projections, attributable primarily to large workforces and new residents arriving daily to fill the high demand for workers equates to an equally high demand for homes. You won’t be short of potential buyers if you decide to sell down the road.

There are a number of advantages to condo ownership that you won’t get from renting., and the long-term investment opportunity is just one of them.

Would having control over your living space through ownership improve the quality of your life?

Anyone who has ever rented understands the limitations of living in a home owned by someone else. Renters relinquish control over decisions large and small involving their home environment. Even simple changes like painting walls a new color when the mood strikes is usually not an option for renters. In fact, changing wall colors often requires the landlord or property manager to approve the new color in advance. Articles on decorating tips for rentals offer some fun and convenient design tips that won’t mark up the walls, but to many adults, placing a peel-and-stick starburst on the wall isn’t exactly enhancing the place. Having control over home surroundings is a huge incentive for condo buyers.

Are you ready to make an investment in a home? Concerned that a condo won’t offer the investment returns you expect from a single-family home? Arizona’s population growth and economic strength add up to a broad pool of buyers now and well down the road if you decide to sell later.

Arizona is currently enjoying a record-breaking economic upswing and a solid forecast for continued financial well-being into 2019 and beyond. The city’s population has been growing consistently for years, and forecasters say 700,000 new residents are expected to make metro Phoenix their home by 2020. A strong and growing job market that includes corporate powerhouses like GoDaddy, Apple Group, Inc, Intel, U.S. Airways, American Express, Boeing, PetSmart, and many others, not the mention the plethora of small businesses throughout the area translate to a steady stream of workers in search of homes.

There are a number of advantages to condo ownership that you won’t get from renting., and the long-term investment opportunity is just one of them.

Would having control over your living space through ownership improve the quality of your life?
Anyone who has ever rented understands the limitations of living in a home owned by someone else. Renters relinquish control over decisions large and small involving their home environment. Even simple changes like painting walls a new color when the mood strikes is usually not an option for renters. In fact, changing wall colors often requires the landlord or property manager to approve the new color in advance. Articles on decorating tips for rentals offer some fun and convenient design tips that won’t mark up the walls, but to many adults, placing a peel-and-stick starburst on the wall isn’t exactly enhancing the place. Having control over home surroundings is a huge incentive for condo buyers.

Here in Arizona, many folks spend their winters in the warm desert climate and return to their homes up north for summer. Snowbirds who rent their winter homes or condos often have to pack up and pay to store their Arizona winter items or lug them back and forth twice a year. Owning a condo in the Phoenix area would be a perfect solution, and it may be more financially feasible than renting in the long run.

Instead of storing or lugging, condo owners can keep their seasonal belongings in their winter home. When they return in the fall or winter, they walk into familiar surroundings and their own personal effects, and they feel at home. Any improvements they make are adding value to their own investment instead of the landlord’s.

Before you rule out the idea of buying a condo because you think it’s too expensive, sit down and crunch the numbers. Compare the cost of a mortgage to the cost of rent, storage, and other expenses related to seasonal leasing. You might be surprised to discover that you’re either saving money by owning your condo or breaking even.

Does your budget tell you “yes”! We can do this”

If you’re considering buying a condo as a second home, it’s the upfront expenses such as the down payment, insurance, and other related costs that will make or break your decision to buy.

If you have the resources to cover the down payment and upfront costs, it could make good financial sense to take action from an investment perspective.

As buy time approaches, are you frequently overcome with the “what-ifs”?
Purchasing a condo, especially if it’s going to be a second home, can be stressful when it comes down to the decision-making process. Unforeseen structural issues, changing personal circumstances, and other unpredictable factors are a risk everyone has to consider when purchasing a home.

But remember, condos in Phoenix are more affordable than comparable units in many other states. Additionally, maintenance is minimal—most condo communities have maintenance staffs taking care of landscaping and exterior upkeep of the property so you don’t have to. The low- to -no maintenance aspect alone makes them particularly alluring for retirees and busy younger adults, which is a big reason for their strong and consistent market demand

Before you buy, however, here are some common mistakes you should avoid. I’ll address those in a blog next week.

House hunting in Phoenix