Foreclosure in Detroit>Question Details

Diane, Home Buyer in

If you knew you would most likely be in a home for 5 yrs before retiring

Asked by Diane, Wed Nov 21, 2007

and moving, should we buy or rent?

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Five years in a long time in housing terms, that would be 2012, most economists predict the market in Michigan will be back by 2009. None of us have a crystal ball, but if you find a home you like, it is always better to buy and take the tax benefits for the 5 years.
Location should be the determing factor in where you purchase, if it is a decling neighborhood, then chances are you will not make any money.
A good Realtor should be able to comp the neighborhood and determine that situation for you.
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0 votes Thank Flag Link Thu Nov 22, 2007
It depends on where you're buying. I see that you're in Detroit...isn't that market hurting pretty badly about now? If you're looking to buy and hold then see if you can leverage the money by purchasing a duplex or multi-family so you can spread the cost. I agree that sitting down with a financial planner would be in your best interest and if you have good credit and a steady paycheck then talk w/your tax person as well to see how to take advantage of this market.
0 votes Thank Flag Link Wed Nov 21, 2007
Diane, There are many variables involved in this decision. I would speak with a financial planner and have them discuss your options.

If I just blurted out that you should purchase a home and not know your entire financial situation, I might be setting you up for a future loss.
0 votes Thank Flag Link Wed Nov 21, 2007
Consider the money you would spend to rent for 5 years. Then consider the idea of buying and selling. Even if you barely broke even, you would be ahead financially! I say buy! Consider when you buy that you will want something that will be easy to resale. Good Luck
0 votes Thank Flag Link Wed Nov 21, 2007
Hi Diane,
I suggest buy... get a well priced foreclosure and you can't go wrong! You'll probably pay just as much or more in rent - so it doesn't hurt to have an asset to sell in 5 years. I expect the Michigan market will be better by then. Make sure your Realtor does lots of background work on whatever property you choose to make sure you have a sound investment.

Best wishes!
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0 votes Thank Flag Link Wed Nov 21, 2007
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