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Should I invest in a duplex with my savings hoping the housing market recovers by the time I retire

I live free with my elderly mother in half of a duplex she owns.  She lives in the other half.  I want to take a large chunk of my savings and put it down on a duplex that I will move into in two years.  I'm 59 1/2 and want to establish some income for retirement or at least a less expensive alternative to renting.  The duplex will give me a tax break, I'll be able to put down some heafty extra payment while staying with my mom, and I'm counting on the housing market recovery and appreciation to help me get ahead.  I'm planning on selling it when I retire and buying a single for cash.  Am I thinking right?
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March 27 2010 - New Orleans
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Why until you retire. After you retire and can be a good income for you.
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July 14 2011
Lamuka, ask your self, how much is your money making now?...zip. Buy when market is low (now) and build your inventory up. I am selling gold coins now at all time high. Low interest rates and tax breaks is the icing on the cake...sweet !
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September 17 2010

I think your on the right path!! With interest rates this low and values just as low, I dont think you can lose..its a great idea shop a good loan. Compare origination Fee's, interest rate, terms, and any other fee's. Good luck :)

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March 30 2010
It really depends when you plan to sell, however, no better time to buy than now, which is why it's called a "Buyers Market"  The prices are at their lowest and you would hold the cards for negotiating a lower price in most cases.

House ARE selling better than last year and the realtors in my area are selling about a house a month, as I understand it, which is not bad for this market. The longer you wait, the better chance that the interest rates and values will rise, although maybe not substantially, a 1% in interest can make a pretty big hole in your pocket.

Whether you should buy if you are now living rent-free, is really up to you based on your lifestyle and financial situation.
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March 30 2010
As with any investment you want to buy low and sell high. This means you may have to wait until the market supports selling to give you the return you are looking for. if that is something you can live with, do the home work. Meaning will it cash flow? Will the rent support the mortgage with a vacancy factor figured in? Is the property going to need alot of work to start? How long before it needs the work to maintain it? There are some terrific benefits to owning property and having some one else paying for your investment if you go into it with your eyes wide open and make sure that you are prepared. Dont rush into it, find something that works well for you and check into all facets of the property you are looking into. Being a landlord is not for everyone and that would be your first question for yourself. Hope that helps a bit. Good luck with your decision Sir.
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March 29 2010

I have a "crystal ball". It's used, but still works. It tells me that housing will not recover in the next few years to allow substantial profit.

 

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March 28 2010
I would be hesitant to presume you would get a healthy appreciation in just five years, especially when there are experts that question whether or not home values have stopped declining.
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March 27 2010
I don't think you're thinking wrong.There are a couple things you need to consider...first,your age.If you were 39 I'd say go for it.However no one has a crystal ball that say's the market will turn resulting in a substantial profit in 6 years.

The other is the being a landlord.You have to look at being a landlord as running a small business.There are some great benefits but some things that can go wrong as well.Tennants not paying,or not reporting minor problems wich become larger problems and so on.

As with any investment there is no sure outcome. Good luck!!  
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March 27 2010
 
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