This comes from Patrick O’Grady of the Phoenix Business Journal: “Mortgage website HSH.com found that Phoenix-area residents must earn $43,836 annually in order to afford the median-priced home in the Valley — which, at $218,800, would mean a monthly payment of $1,023.”

Average rent in Phoenix is approximately $1100. Having shown quite a few properties to clients in the 1100 range, believe me, they always ask in disappointment, “What if we were willing to pay 1200 or 1300?” Reality is, you generally have to pay 1300-1400 a month for a decent rental with some square footage in the Valley.

This makes O’Grady’s point all that more interesting.  Think the down payment is the main obstacle keeping renters from buying.  But maybe that obstacle is not as insurmountable as thought.  For instance, just had a client qualify for a conventional 30 year loan for 5% down (with very good credit). On a 218K home that would be $10,900 down.  And if that person had been renting at 1300/month and now has a 1,023/monthly mortgage they would save, drum roll please… $3324 annually! In 3.2 years one would save back the 10,900. And come tax time the interest paid becomes deductible. Wow. Food for thought folks, food for thought.

On another note, want to give a shout out to Ed and Jessica at Universal Drain Cleaning (602)-482-1900.  Was in a pinch at a rental property the other day.  The kitchen sink was badly clogged and me in all my infinite might (and 5 hours of trying) had lost hope of getting  it cleared.  Kind of a bad deal for the tenant considering she had been very limited in her use of the kitchen faucet for 3 days.

I called Universal at 3:30, he arrived at 5 and had it unclogged by 5:30.  Just in time for the tenant to return home at 6.  Always good to have someone in your phone.  Wished I had called 4 1/2 hours earlier