Original Date of this post: Friday, October 27, 2017
Dear readers, since this a new blog likely less than 100. Please provide your point of view. This is an important decision that we need to make so it will be nice to know your thoughts.
We live in cold sub-arctic climate, so we fly to Phoenix Arizona at least twice a year (We would fly-in more often if we had our own place, at least that is the assumption). After traveling to 4 times to Hawaii in the past 6 years, we are set on buying a second home/vacation rental in Phoenix Area. We like a lot Scottsdale and Vistancia in Peoria. We plan to eventually move to Phoenix. But we are struggling with the decision.
What we love about Phoenix: 1. Desert, 2. Hot climate, 3. Clean Roads and nice roads, 4. No tollways, 5. Mildly congested highways, 6. Pools, 7. Relatively low cost of living, 8. Low real estate taxes., 9. Excellent schools for our twins.
What we don’t like about Phoenix: 1. Low wages, 3. Hard to get jobs. To be honest, we don’t really need work, and after moving to Phoenix, we are very unlikely to get jobs, mostly because we live frugally and we have other income streams from rental properties, interest, and dividends. But we like to work also, so we have to do something to avoid the boredom of continuous vacation (I will present my point of view on “boredom of continuous vacation,” later.)
Background Information about our search area:
Vistancia – Peoria Arizona: Vistancia is master community development, in other words, they are starting a new city from scratch. Currently, they are at the halfway mark of the total of ~25,000 to ~30,000 population. This place is what I would name a resort style living. There are awesome trails, pools, tennis courts, indoor basketball court, and endless social activities for residents. If you are interested in finding out more, check it out for yourself, click here.
Scottsdale, Arizona – Awesome affluent and established community. I am making the assumption that the world knows Scottsdale, Arizona but if you don’t know Scottsdale, here is a link to Wikipedia, click here.
What can we buy without overextending ourselves?
Criteria Buying Home: 1. Purchase Price Range: $350,000 to $400,000., 2. Quality of Life, 3. Forecasted prices increase. 4. Rental Market Rate, 5. Airbnb.com rental viability/income.
Estimated Carrying Cost of the Property: (Assumptions – House Price: $400,000.00, with 20% down). Mortgage Payment: $1,496.00, HOA: $150.00, Insurance: $67.00, Real Estate Taxes: $257.00
Additional Costs: I would assume around $200.00, just be on the safe side, so we are looking at total monthly outflow of $2,169.00 (Yearly: $26,028.00, 10- Year: $260,280.00)
Dilemma Number 1: Commuting Costs in dollars and time which eventually or unfortunately equates to poor health and loss of opportunity time, which translated in back dollars:
Vistancia is really far away from everything that is “Phoenix.” Zillow that is community has a Walk Score of zero. If you want to find out your Walk Score, click here.
My Zillow.com detail calculated cost state the following:
If I was to drive an average car gas powered car right now, my cost would be in broad terms $1,141.00 per month (Yearly: $13,692.00, 10-year cost: $136,920.), and 29 hours let say I will earn $20.00/per hour. My lost opportunity time by not sitting in my car of $580 per month (Yearly: $6,960.00, 10-year: $69,600.00)
While living permanently and commuting to Vistiancia, I would go broke. Total yearly cost would be $20,652 (10-year: $206,520.00).
While living permanently and commuting to Vistancia, we would go broke. Total yearly cost would be $20,652 (10-year: $206,520.00).
So, commuting from Vistancia is simply out of the question. In order, to have a great life, we would have to work out of our home. Which is not impossible and rather probable.
Now, what the numbers look like Scottsdale (downtown).: Average Walk Score is 32 and Transit Score 24.
How much do we spend on Vacation while in Phoenix?
Forecasted increase in prices?
I am not done with this blog post just yet. Hang in there. I will put more stuff as they are processed in my brain.
New build vs Old Property
Future return if we ever change this to an investment
Financial – I have a cool job because I like what I do with plenty of time off. I don’t plan to fi