I would like to buy a second home but hesistant due to high property taxes. Is it a better investment rather?

Asked by Karen, Westland, MI Sun Mar 15, 2009

than having the money deposited in the bank?

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Derek Bauer, Agent, South Lyon, MI
Sun Mar 15, 2009
Real Estate investing is not for the faint of heart. You need to weigh ALL of the factors ... carrying costs, rental income, rehab expenses, high non-homestead taxes, insurance, etc. Also, speak with a CPA and finance professional for more on the tax benefits and implications.

Good plan to ask the question here, but don't let the questioning end with real estate professionals. Take it further to your trusted tax and investment folks, and also secure a buyers agent who is knowledged and can represent you.

If you would like to search bank-owned homes, click the link below.


Derek Bauer, Associate Broker / Realtor
Real Estate One
734.678.4745 - cell
Derek@DoorToDreams.com
0 votes
Andy Hargrea…, Agent, Plymouth, MI
Sun Mar 15, 2009
I'll ask this question...
By putting your money in the bank, can you make $30,000-50,000 in less than a year? I'd doubt it.

If you "play the market" right in Real Estate, you can really return nice dividends as long as you know what you're doing.

As an example -- I have a client of mine that buys and rehabs homes and sells them. He's pretty skilled at the game, but 7 buy/sell transactions last year netted him a profit of $94,000. That's nothing to shake a leg at.

Depending on what you do and how you want to do it, buying now can be an exceptional opportunity. Just be smart about what you do and always prepare for the "what if?" scenario.

If you want more info or examples of my past clients' experiences, give me a call/text/email ;)
0 votes
John Gitre, Agent, Canton, OH
Sun Mar 15, 2009
Karen, real eastate over the long term has consistantly been a god investment. My thought lately has been how I can get local people to see the potential here. This past week I have answered calls from people spread from California to the British Isles that are interested in investing here. You should start locally, you live in Westland so start in that area. There are some great deals in your area. Find yourself a Realtor who is knowledgeable about your area. In this market, find one who is very familiar with the Bank Owned/HUD home process.
If I can be of further assisatnce, you may conatct me through my Trulia profile. Good luck.
0 votes
Bill Eckler, Agent, Venice, FL
Sun Mar 15, 2009
Many, many other people are struggling with the same question. What is the best way to safeguard your money and get some return on it?

Banks, antique cars, art, gold etc. are all possibilities. But the fact remains tha real estate remains a sound long term investment. The key today is identifying the right property, in a perfect location, being offered at a price that will guarantee value.

Our advice is to not remove yourself from the game....be looking around for the deal of a lifetime...There are many out there.

Good luck
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