The Village at West Meadow Townhomes HOA 4545 N 67th Ave Phoenix, Az 85033 2550 E Rose Garden Ln, #71384 Phoenix, AZ 85050 July 18, 2024 RE: Introductory Letter to Village at West Meadow Townhomes HOA Homeowners Dear Village at West Meadow Townhomes HOA Homeowners, The Village at West Meadow Townhomes HOA Board of Directors has instructed PMI Phoenix Valley to initiate the Leasing Management Program for all homeowners.

-Homeownership First: Would it be better to first purchase a home of our own, get some experience being homeowners, and then start the process of renting out properties?

She is crediting that back to me, as I’ve already paid the new homeowner/landlord this money. 

I think mom and pop will prioritize a home to live in before spending 100k on a SUV with 1500 dollar payments. younger folks will realize rent is a loser and try harder to be home owners in the better cities markets of the US.

The odds that anyone on Section 8 can become a home owner may be OK in a low-cost market, but the odds are ridiculously small in Austin.

Below is a comparison of average annual property insurance and property taxes for 5 states:Texas: average insurance: $2,536, property tax percentage of value: 1.68%New York: average insurance: $1,418, property tax percentage of value: 1.40%California: average insurance: $1,839, property tax percentage of value: 0.75%Nevada: average insurance: $1,144, property tax percentage of value: 0.59%Florida: average insurance: $2,207, property tax percentage of value: .91%To put these costs into perspective, below is a comparison of the annual cost for a $400,000 property.Texas: $2,536 + 1.68% x $400,000 ≈ $9,256New York: $1,418 + 1.40% x $400,000 ≈ $7,018California: $1,839 + .75% x $400,000 ≈ $4,839Nevada: $1,144 + .59% x $400,000 ≈ $3,504Florida: $2,207 + .91% x $400,000 ≈ $5,847Sources: Homeowners insurance, state average property taxesIndirect costs: Rent control is a hidden tax that may limit your ability to select the best tenant, remove a non-performing tenant, and increase rents enough to compensate for inflation.

Median asking prices in 2024 are at $734,950, an increase of about $35,000 from last year.As small multi-family investors in Queens and Nassau get outpriced, they, like traditional homeowners, tend to travel East or North.

Also, in a time when homes are becoming more and more unaffordable, I believe that investors and homeowners will seek markets where homes are affordable.

The homeowners that are struggling right now are mostly ones that own lower-end homes that were purchased within the last 3 years (post-COVID) and made their investments based on the unrealistically hight expectations that all the "revenge travel" created.

This is not some random accidental homeowner who wants to be a landlord and doesn't understand the PM industry.