Q: My wife and I are relocating from one city to another. We are probably only going to live in the city for two years.
My wife prefers to rent, afraid we will lose money on real estate commissions, etc.
I think that we should buy a house and take whatever small tax advantages come with it as well as the equity we put in. What do you think, Ilyce?
A: You should only buy a house if you’re going to purchase a fixer upper at a great deal, and then fix it up to build in value. If housing prices soften over the next two years, you may lose quite a bit of money. It’s a risky proposition. You and your wife need to have a frank discussion about how much risk you’re willing to take.
Thanks for listening to me on Newstalk 750WSB!
Jan. 6, 2005.