Does anyone have any advise on whether or not to purchase lot in Pinnacle Canyon and hold for a few years as investment or build custom home.?

Asked by Bonniepgordon, Sat Jun 8, 2013

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Jeff Fisher, Agent, Scottsdale, AZ
Sat Jun 8, 2013
Most lots for sale in Pinnacle Canyon have an average days on market of 300 plus days,.and there are only 5 from my quick search of the Pinnacle canyon area at this time. All developer lots have been sold and these 5 have annual hoa dues, and transfer fees. Price range from 300K to 500+K . Deciding on the size, design and construction of a home on these lots could take a couple of years, so if you're serious, buy now! They aren't making any more land.
1 vote
Bianca Benne…, Agent, Glendale, AZ
Fri Jun 21, 2013
Is this custome home for you? Is this your dream? or Do you intend to build it as an investment?
0 votes
Phil Griffith, Agent, Scottsdale, AZ
Sun Jun 9, 2013
Bonnie; Here is some "advice" to "advise" you re: a potential lot purchse in Pinn. Canyon to hold for a few years. Here's the deal. If you hook up with an agent who has worked this area for awhile, he or she will be able to look at lot prices (sold) in the area's subdivisions and be able to show you the "what ifs". Buy, hold, sell. Lot prices, like a lot of property up here, are determined by the demand for lots when builders want to spec a home, (not happening now, for sure), or, someone is moving here and wants to build on that particular lot. So, the old supply/demand dynamic. Your particular questions is about a specific community/subdivision. So, how many vacant lots are left? How old is PC? How has the absorption gone? How about the competition? Are their other lots nearby for sale just as good? See what I mean? There are lots and lots of components that go into the proper answer to your concerns, and the only way to best understand your options is to examine are these factors with a pro.. good luck in your search. Oh, by the way, I would be happy to help!
0 votes
Gene Montemo…, Agent, Scottsdale, AZ
Sat Jun 8, 2013
Hi Bonnie, as someone with a lot of experience in the Metro Phoenix land market, it all depends on what you want to do with it. If you are going to use it, yes, buy it now. Use a rough formula of spending no more than 25% than the value of the finished home. Factor in carrying costs and lot prep - many lot buyers forget to figure out this cost that potentially can ruin your numbers!

Investment situations are different. "Investing" in land takes time and you have to get a good deal. A good deal also takes into consideration location within the community, lot prep, impact fees, etc etc.

Buying land can be tricky. Shoot me a message if your situation is different than the above. I have a lot of answers to different scenarios.

Gene Montemore
gene@AZacreage.com
0 votes
Jennie Miller…, Agent, Phoenix, AZ
Sat Jun 8, 2013
If you are purchasing this for investment, what is your goal? Are you looking for long term appreciation or cash flow?
0 votes
Wade Kawaha…, Agent, Phoenix, AZ
Sat Jun 8, 2013
Hi Bonnie,

Land as well as other real estate has started to rise in price so if you are planning to build, it would be advisable to buy as soon as possible. If yo are thinking of holding it and trying to resell, there are other investments that are more sound than raw land.
0 votes
Bonnie Hall, Agent, Scottsdale, AZ
Sat Jun 8, 2013
We always thought of land as a long hold. Keep in mind it gives you nothing while you hold it and does have to be fed... Taxes, HOA fees and the cost plus interest. A better investment is a small rental that brings in income and has some tax advantages. Or buy a home for yourself. Lots are good if you plan on building on them. Talk to a good accountant.
0 votes
Joseph Domino, Agent, Scottsdale, AZ
Sat Jun 8, 2013
I noticed that your profile shows "renter". If you are currently renting, you would be much better off buying a house to live in than buying a lot (which you will have difficulty financing). A house will not only appreciate, but you can live in it or rent it.

Contact me and I will be happy to discuss your options.
0 votes
Ryan Cramer, , Phoenix, AZ
Sat Jun 8, 2013
Lots don't appreciate as much as homes and you have no return while holding it. Lots really aren't investments.
0 votes
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