Chris, Home Buyer in Royal Oak, MI

better to stretch to afford better neighborhood or buy comfortably in area where values declining?

Asked by Chris, Royal Oak, MI Thu Oct 4, 2007

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9
Chris,
By stretching a little you will not only get a better location, but the value of your home will be more likely to retain its value if not increase in value. You will want to look for one of the smaller homes or one that needs a little TLC. Good luck.
2 votes Thank Flag Link Fri Oct 5, 2007
Buy location, compromising on a smaller house, or maybe one that is a bit dated if need be to stay within a reasonable price range. Stretch, but leave enough wiggle room for sunny days and rainy days.
2 votes Thank Flag Link Fri Oct 5, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
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Stretch, but only to the point that it's a comfortable stretch. If you have to buy a smaller house, or one that needs work, then so be it.

I'm not a fan of putting people into "paycheck to paycheck" situations. It's not financially smart, and you won't enjoy your new home if you can't even go out to eat dinner once in a while.
2 votes Thank Flag Link Fri Oct 5, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
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Add the following item to determine value.... How far do I have to dirve? I you spend $100 bucks a month extra on gas, then you could have easily afforded a closer home that was many $$$ more.
2 votes Thank Flag Link Fri Oct 5, 2007
Better to buy in a stable neighborhhood !
2 votes Thank Flag Link Fri Oct 5, 2007
Remember, location, location, location. The old real estate investment advise is still true and will be true for years to come. Invest in the least expensive house (comparable in features, square footage, acreage, floor plan) in the best neighborhood.

If you worry about your investment, I would stretch to get a cosmetic fixer in the best neighbor. It will be an automatic winning situation for you.

Sylvia .
2 votes Thank Flag Link Thu Oct 4, 2007
Sylvia Barry,…, Real Estate Pro in Novato, CA
MVP'08
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Better to stretch...don't jump on the sinking ship.
Your goal is it is an investment..you want a positive investment for the long term. Sacrifice alittle now, gain alot later.
Web Reference: http://www.iansellsnola.com
2 votes Thank Flag Link Thu Oct 4, 2007
Absolutely better to stretch. A declining neighborhood will likely continue to decline. A good area will recover faster in a down market. Pure and simple.
2 votes Thank Flag Link Thu Oct 4, 2007
Chris, No real estate professional has a crystal ball. The answer would depend upon what the City of Southfield has planned for the area, how many years you plan to live in the home, and how well you maintain the home.

In many areas of the Country, people are moving back into the city, rehabing homes and selling for a handsome profit after everyone else moves to the neighborhood.

Do some research before buying. This is something you must research yourself.
0 votes Thank Flag Link Sun Oct 7, 2007
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