Question: I'm considering the purchase a home I cannot afford. At this time, I can afford around $80,000 -- basically a home that's in need of repair. The house that I want is $219,000. I do not know if either choice is acceptable. I obviously do not want to live at either choice for very long (no more than three years). Should I take the plunge and get in the game now, or should I save up money and do things the "traditional way."

Answer: There is no choice. You cannot buy a property which is three times beyond what you can afford. No legitimate lender will provide financing. Such a purchase has a huge chance of leading to foreclosure and bankruptcy. Even if you can make the mortgage payments, what about taxes, utilities and repairs?

What you should do is to work at saving more and increasing your income. Also, spend more time learning about real estate in general as well as the specific trends in your local community.

No less important, buying a home with the intent of selling in three years could be a disaster. It costs money to acquire real estate and money to sell, so even if you get a higher price you could have an actual cash loss on the sale.

E-mail us your Real estate questions at:  Cathyah@aol.com

Call Cathy & Jim Higgins for our opinion on your Home:

Ind: 219-865-4361  Ill: 708-828-3304.                         

Licensed Broker/Realtors in Indiana & Illinois

Coldwell Banker Residential Brokerage

Website: www.Cathyhiggins.com