Metro Detroit real estate
In many cities around Detroit homes have lost so much value. SomeDetroit homes have lost 70-90% of their value. Cities like Dearborn Heights, Redford, Southfield, Warren have taken dramatic hits too. Some homes in those cities are selling for a little as a $50 a square foot. Where can you get a place to live and call your own for under $900 a month. There are some real bargains out there.
That is the way I am looking at it. Where can you live for that kind of money? Most nice one bedroom apartments cost $700 a month to rent. You have to remember that get a tax deduction for the interest you pay on your house and for the property taxes you pay. So if you get very little back on your taxes you should get back more when you buy a home. Many times the increase you have to pay in what you are paying in rent to what you pay in a house payment will be offset by the tax deductions.
Besides now you are building equity in a home. What I mean by that it is like a forced savings plan. Each month part of your payment is put toward paying down the mortgage. In the beginning when you buy a home you are paying mostly interest but as the years go on it adds up. Besides you have to look at it this way how much is your landlord saving for you out of your rent money. NONE. But the first year of buying a home you most likely will have put $1000 towards paying off the mortgage. A great savings plan and home you can decorate any way you want. And you can do anything you want in your house.
If you are a Metro Detroit first time home buyer there are a lot of reasons to buy before December. And the tax credit ( or better explained tax refund) of up to $8000 is a tremendous reason. Never before have home buyers been given up to 10% of the purchase price as a refund/ tax credit on their taxes. I would like to get a tax refund like that. So let’s say you normally get $1400 back on your taxes. Now you would get $9400 back next year if you bought a house that costs over $80,000. Now that is a deal. Free money from Uncle Sam.
There are lots of great deals in cities across Oakland County and Macomb County. Whether you buy a Metro Detroit foreclosure or just find a great updated home there are lots of bargains out there.
If you are new to the process and have questions feel free to call me or email me. There is no dumb question. Buying your first house can be overwhelming but that’s my job to explain any question you have. To put it into simple terms instead of real estate lingo or mortgage lingo.
Russ Ravary Your Wayne, Oakland, and Livingston County Realtor
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