Thursday, July 5, 2012

I have been battling in my mind for some time now as to what to do about this house/property.  Short-sell or stay.  I wouldn't actually have any problem, whatsoever, in short-selling excepting that I would end up having to rent.

Well, I found out some interesting information yesterday while at the pastor's house.  With Intel building it's new microprocessor plant, there will be 5,000 new jobs come along with it.  Intel is, of course, actively hiring.  Their qualifications are high.  You have to have a college degree AND your grade point average has to have been at least 3.7.  I know this because an individual at church tried to get in - he had a 3.5 grade point average and that isn't enough for Intel, even though he has 2 family members that already work there.

Amazing.  But, that's Intel.  On it's construction site for the new building, they demand a high level of excellence/quality/attentiveness to safety. Companies have, I have heard from personnel working on the site, been kicked off the site for failure in any of those or other categories.  Even with all the safety they have in place, a large number of accidents have occurred on that site anyway.

But, that brings us to the point:  with all of these people being employed, they are moving here and looking for homes.  The East Valley and more specifically Tempe and Chandler - and probably Gilbert - are experiencing a high demand for homes for sale and the prices are going through the roof.  That's because - yes - all of those people have to have places to live.  I am guessing many people are moving here from out -of-state, a job such as that would be worth moving here for.  High paying, lots of perks and undoubtedly great benefits.

This coming from the pastors as they were working with realtors to try and get a home in Tempe.  Every house the put an offer on had many other offers as well, many of them higher than their offer, even though their offer was for the asking price on the house.  This, obviously, does not bode well for a person like me that was thinking about short-selling and finding a rental unit until I can come up with the down payment for another house plus have my credit score recover after the short-sell does a 100 to 200 point hit on your score.

Rentals have also gone through the roof.  It's amazing the turn-around.  Had no clue this was going on in the East Valley, though I did know some time back that the new plant was going to create 5,000 new jobs.  I just didn't correlate in my mind all of those jobs and all of those people needing a new place to live.  The East Valley is the only place I want to live in the Phoenix Metro area.  I have absolutely no desire to live in the West Valley, a place I love to hate, I also do not want to live in Phoenix proper, and housing/rental prices in the northeast valley - Scottsdale - are way too high for my income.

The only real alternative I would have at this point, if I really thought I could handle it, which I am not sure I can, but that would be to move into an RV park, park the trailer that is currently in my driveway there and set up camp for an indefinite period of time.  My monthly costs would be greatly reduced. I could downgrade Direct  TV to a  much lower priced plan; electric usage would go down to less than $100 per month; water usage is sometimes given in the price of the monthly rental fee at some RV parks; the monthly rental I could get around $300.  Car insurance rate would also go down - they do it by zip code and I happen to live in a zip code that is greatly inflated per rates.

It's a non-starter.  For one, the dogs.  Would any of those places take 3 dogs?  2, the size of the trailer.  It does not have slide-outs and it would be pretty cramped living.  3, the fear of never being able to get into a home again.  Could I save enough money to come up with a significant down payment or would I be stuck forever?  But here's the real kicker: I watch a couple of online sites for estimates of what my house is worth, it has come back up over 10k in the last 2 months.  I'm now "only" around 60k underwater compared to the almost 80k it was at the beginning of the year.  Is this due to the Intel situation as well? I don't know.  I am right on the border of the East Valley.  If I thought that in the next couple of years, the value of my house would actually come back up to what I owe on it, at least, this idea of short-selling would vanish out of my mind.  Why short sell when I can wait, sell the house for what I owe and not take any kind of negative hit on my credit score?

But I don't know that that's going to happen. Back to the Intel situation, however, I'm pretty much screwed. I mean, if I could somehow acquire a LARGE travel or 5th wheel trailer with at least 2 slide-outs, then I would give it serious consideration.  Those offer quite a lot of interior room and lots of storage.  I could deal with that, but those things are much more expensive than these 2, older units I bought and I simply don't have the money for anything like that right now (and making payments on a larger unit isn't exactly appealing to me right now, either).

I am slowly winding down, in my mind, the idea of short-selling.  The con's are out-weighing the pro's by a large margin at this point.  I don't necessarily like having all of these tenants in here, at the same time, the crew I have now are very easy-going people and I get along with all of them.  The biggest pro to leaving this place is this ridiculous neighborhood with all the BS that goes on around here.

Dunno.  I'm just going to sit back and stay here a spell and see what continues to happen with housing prices.

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