Tt, Home Buyer in Ahwatukee Foothills,...

Anyone know what's up w/ Portofino and San Simeon condos? I'm looking for a vacation condo, but fear they could go bankrupt or levy huge

Asked by Tt, Ahwatukee Foothills, Phoenix, AZ Tue Feb 9, 2010

assessments. They look nice, but prices have plummeted and many units are in foreclosure.I can pay cash and would hold for 5-10 years. This is for personal use and i am not worried about making a big profit. I just don't want to lose my money, and more importantly don't want to be liable for huge assessments due to vacant units. Any thoughts?

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Dear TT,

I believe that both of these complexes are Apartment to Condo Conversions that were created during the peak of the housing market several years ago. As such, anyone who purchased during this time frame is most likely in a negative equity situation which may lead homeowners on the path to foreclosure. Banks selling foreclosed homes have been largely requiring that outstanding HOA fees be paid for by Buyers so you will want to confirm the amount of these fees prior to close of escrow to avoid any surprises.

The conversions from rental to purchase units historically involved improvements such as new carpeting, tile, granite countertops, upgraded cabinets and appliances. Because structural changes were not often made, these complexes still have the look and feel of apartment complexes to include smaller square footage, no garages and common neighboring walls. These factors can and will likely negatively impact your re-sale options. If you are committed to purchasing a condo unit, I would recommend a complex that was originally built as such. There are three options in the Ahwatukee/Foothills/Club West area I would recommend you look into:

1) Vantage Ahwatukee Foothills Condominiums, 15550 S. 5th Avenue, Phoenix, AZ 85045
2) Stonecliff Condominiums, 1024 E Frye Rd, Phoenix, AZ 85048
3) Mountain Canyon Condominiums, 3236 E Chandler Blvd, Phoenix, AZ 85048

CLICK LINK below to view active listings for sale in these communities. (Valid until 03/11/2010)
http://www.flexmls.com/cgi-bin/mainmenu.cgi?cmd=url+other/ru…

As a longtime Resident of Ahwatukee and area Realtor, I can provide you with immediate area assistance. Feel free to contact me directly if you have any additional questions.

Sincerely,

Allen Madril
Realtor, CRS, ABR, GRI
Phoenician Properties Realty
(602) 460-9085: Cell
Web Reference: http://www.AllenMadril.com
1 vote Thank Flag Link Tue Feb 9, 2010
Your worries are certainly not without foundation. Both properties have a lot of foreclosures and/or short sales going on. The large number of these type of sales would suggest prices are not stable and likely to decline.

Regarding the health of the HOA, City Property Management handles both these properties. I've had trouble getting them to release HOA financial statements without a contract in place on a unit. However, they do have a phone number you can call and perhaps you'll be able to get more info as a potential buyer verses me, a Realtor. Their phone number is 602-437-4777.

I agree with your concern regarding assessments. It is both valid and real. In this market, STRONG due diligence regarding HOA's is wise. If you are going to hold the property for 5-10 years, I'd be less fearful of dramatic losses in value though. I do believe some condo projects will see declines over the next two years due to FHA loan regulations.

I hope this was of help.
Web Reference: http://www.urbanteamaz.com
1 vote Thank Flag Link Tue Feb 9, 2010
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