A TH/condo in bay area or a house in Phoenix?

Question

Hey Bigger Pockets! First post here :)

I'm currently located in silicon valley bay area of California. Have been working here for a while and finally saved up enough down payments. Originally I planed to purchase either a 2b2b townhome with good conditions or a 2b2b condo with a good location. However, last year I met my boyfriend who is currently working in Phoenix and owes a house there. I have the plan to relocate to Phoenix, and don't know what to do with my down payment now. Should I continue my plan with a townhome/condo in the bay area? Or start to look at the SFHs in Phoenix? Apparently in either way the place I purchased will be a rental property.

Thank you!

Ivy Liu · Answer

Hey everyone thanks for the advice! I have actually lived in Phoenix for three months and am good with it right now (not sure about summer though...) Recently I came back to bay area and tried to bid on some places. Got quite shocked that people would add 150k more for a 2b2b townhouse. This could have been a down payment in Phoenix 😂

Right now I'm concerned about the possibility of interest rate rising, inflation, etc and I guess that's why I don't want to hold on to cash anymore. I think Dylan is right, I will try to calm down and only purchase when there is a good deal.

Greg Scott · Answer

Easy, Phoenix.

First, no matter where it is located, I would never choose a condo over a house. There are many reasons for that including lack of control over expenses, and challenges of dealing with other owners.

Even if they were both houses, I would always choose Phoenix over Bay Area. The communist republic of California is not very friendly to landlords, but Arizona is. Both taxes and insurance costs are also lower. And, recent census data shows California is losing population while Phoenix is booming!

Dylan Vargas · Answer

@Ivy Liu Welcome! How much of a connection to Phoenix do you have besides the boyfriend? Same with the Bay Area I would hold on to your cash. Wait until you are in Phoenix, make sure you like Phoenix long term weather you live there or not. What happens if you break up in a year and move back to the Bay? I would save the money and see what happens until you find a comfortable place to purchase. Good luck and keep us posted.

Wendy Patton · Answer

@Ivy Liu i would say AZ also - i just bought a home there and a real estate office - let me know if you need other info in that area - i would gladly point you in the right direction

John P. · Answer

Phoenix would get my vote. I would not even consider California for investment at this time and I live here!

Justin Phillips · Answer

@Ivy Liu Finding a deal will probably be equally tough in both markets, but as mentioned above, Arizona government is currently much more landlord friendly than California's. Hopefully it stays that way!

Nicole Lee · Answer

@Ivy Liu I am slightly biased but I say Phoenix as well. Landlord friendly and cheaper than Cali

A TH/condo in bay area or a house in Phoenix?

A TH/condo in bay area or a house in Phoenix?

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