General Area in Maple Grove>Question Details

Ravi, Home Buyer in 55422

Hi! I would like to ask what is the general opinion of people about buying a townhome in Maple Grove, (MN). A

Asked by Ravi, 55422 Sun Apr 20, 2008

Single Family home is beyond my budget. Any cons of buying a nice townhome in Mplae Grove? Any ideas about where prices will be 5 years from now when I may be able to afford a Single Family home? Any advice will be highly appreciated!

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7
Ravi,

I concur with Michael. Great time to buy in Maple Grove, but make sure your plans are to hold it for 4 to 5 years to really come out on it. By the way, what price range are you looking at?

Good luck with your purchase!

Thanks, Todd Norsted
Web Reference: http://www.toddnorsted.com
0 votes Thank Flag Link Tue Apr 29, 2008
Ravi: A real estate purchase, like everything else is about timing. There is the "market time" and then there is "Ravi time". There is a lot of competition for home buyers between sellers of town homes in Maple Grove so your ability to negotiate a good deal today is not in doubt. Over the next 12 to 18 months, prices may get a little better, but if your alternative is to put out a large sum to rent a home while you wait for prices to come down further, you may not come out very much ahead becasue you will have lost the opportunity to take income tax decuctions for your interest and property taxes as a home owner. In addition, over this time frame, you will be using your monthly outlay for housing to pay down the mortgage with each payment and gain equity in the process. It might serve you well to "run the numbers" with your tax advisor comparing the costs of renting with the benefits of owning. You may want to look at several properties with a real estate professional in your price range once you have worked out a purchase budget with a mortgage lender to see what is available in the market in your price range. With a 5 year time horizon, you should be fine to make a purchase now if you want to. Once the market passes through this dip and the excess inventory of foreclosure properties is mopped up, we will see prices spring back somewhat. None of us has a crystal ball, so exactly when that will happen is anyone's guess. A couple of clues here, affordability levels have improved significantly in the past two years and congressional moves to stem the tide in forclosures are two factors that will work to put a bottom under the present market. Best wishes.
0 votes Thank Flag Link Tue Apr 29, 2008
Ravi,
I think you will get a get deal if you buy right now. You should be able to buy at 2004 prices. If you can stay there for five years you should be fine. The single family homes you will find under 200k in Maple Grove will need a lot of work so a town house might be a wise choice. Good luck on your search.
Michael Doyle Realtor
0 votes Thank Flag Link Sat Apr 26, 2008
Hi Ravi

Regardless of if you are buying a townhome or single family, the rule of thumb for purchase right now is time. That is, time for you to live in the property to outlast the current market. I advise my buyers to take a look at their situation, and assess if they can stay in the property for at least 3 years. That is a minimum in terms of the turnaround of the current market and enough appreciation to build for you to sell and move on with equity.
0 votes Thank Flag Link Tue Apr 22, 2008
Ravi, Town Homes are still a good investment. Maple Grove is holding value fairly well. I wouldn't rule out the idea of a Single Family home though. Prices are great right now, and interest rates are low. If you need any help, you can contact me.
Brad Anderson
763-486-5338
BradAnderson@kw.com
http://www.BradAndersonHomes.com
0 votes Thank Flag Link Mon Apr 21, 2008
According to the Minnesota Association of Realtors, town homes will stay popular. The reason? Demographics are changing in our area. There will be more one and two person households as opposed to large families. Therefore, town homes will hold there value because of the demand. The "big boxes", in other words large single family homes, in Maple Grove will be sitting longer. This may be good for buyers in the short term, but resale will not be as lucrative as a town home if you buy now.
0 votes Thank Flag Link Mon Apr 21, 2008
I live in Maple Grove and am a realtor. I am typically not a fan of the townhome market. However, I recently was talking with an appraiser and he stated that surprisingly the Maple Grove market was holding its own in regards to values in townhomes. I live in a higher end twin home and his appraisal was right on with his statements. If I can help you at all give me a call as I know this area backwards and forwards and can tell you if it is a good deal or not. 612.730.2619 brian
0 votes Thank Flag Link Sun Apr 20, 2008
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