As a Waterford first time home buyer you may be wondering whether you should buy or should you wait? The reason I am touching on this subject of buying or waiting is because I took a client to look at a Waterford rental tonight. They can afford to buy. They were planning to buy but their landlord threw a wrench in their home buying plans. There lease was up in March and they were planning to go month to month after their lease ended. They thought they would be able to stay in a home until they found a Waterford home they could buy. Well two days ago the landlord notified them that he was going to sell their Waterford rental house after the lease ended. They would have to move at the end of March.
So now they have to make a decision whether to buy a Waterford home or rent for another year. Here is my take on the metro Detroit real estate market and the Waterford real estate market. Real estate prices in Metro Detroit are rising. I have seen home price rises from 5% to over 10% in the last year. I believe that we are going to see the same trend next year. So let’s say the clients are looking for a $150,000 home. Let’s just estimate that Waterford home prices rises 7%. That means as a first time homebuyer you will lose $10,000 because you will have to pay $10,000 more for the same Waterford house next year. You may not want a home in subdivision in Waterford but maybe a waterfront properties in White Lake Michigan may be more for your liking.
Now remember, that is just my thought, my predictions of what the Waterford real estate market is going to do next year. Then, if you are paying $900 a month, times 12 months it adds up to over $10,000 a year. So add $10,000 increase in Waterford home prices and the $10,000 you spend in rent….That means you are $20,000 down. $20,000 more you are spending by waiting until next year. To me that is a no brainer. I would buy a Waterford home this year. I would hope to get this years appreciation and not spend the money on the rental. Plus you would get a tax deduction for the interest and taxes paid.
I believe this same scenario is happening all over Metro Detroit. Metro Detroit real estate prices are going up. So, I believe it is best to buy a Metro Detroit home sooner than later.
Ready to find your first home. Join my Homebuyer VIP club and get the latest foreclosures and the newest listings emailed to you daily. If you have a home inspection coming soon then how you handle the potential issues is important. Here is an article on West Bloomfield home inspection problems and another one on some of my Metro Detroit home buyer articles.
If your heart is set on a waterfront property then maybe you would like a private all sports lake like Walters Lake in Clarkston Michigan or Watkins Lake in Waterford MI. There is good fishing on both lakes and many beautiful homes to chose from.