Did you join real estate expert Ilyce Glink on the last Live Chat? If you missed out, here’s an excerpt with common questions about buying a home, buying rental property, and deciding whether to buying vs. renting Sign up for the next Live Chat on the Equifax Facebook page.
Q: Why should I buy instead of rent?
IG: I think there’s a unique opportunity to buy because prices are low AND interest rates are low. So if you have good credit, and you can really manage to scrape up enough money to make the banks happy, you should go for it. Just make sure you know where you’re going to be for the next 5 to 7 years because fixing and flipping is for the experts. Find somewhere you want to live.
Q: I’m looking for these “great deals” I keep hearing about. Where do I start looking?
IG: Great deals abound. The top states for foreclosures (which I run down every month on my MoneyWatch.com blog) are California, Nevada, Georgia, Michigan, Florida, AZ, but there are great foreclosure deals everywhere. Try a HUD Home. Go to hudhomestore.com and look for an agent who really understands what you’re trying to do. These are great properties at a great price.
Q: Is rental property a good investment?
IG: Depends on where you buy and what you buy. I have friends in Atlanta who are spending $50,000 to buy a decent-sized 3-bedroom 2-bath house in a good school district and renting it out for $800 to $1000 per month. They’re making money from the get-go. So, that’s a great investment property. You can do the same thing in almost any market, but the folks who do this for a living are looking to scoop all these great deals up. Start by finding a great real estate agent who can help you.
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Ilyce R. Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate atThinkGlink.com and at the Home Equity blog for CBS MoneyWatch.