By Bill Herrfeldt
THE ERICKSON TRIBUNE

Your parents told you when you were young that it is never too early to plan for your future. Probably there was college, then a job, followed by marriage, and you even started putting a few dollars away in savings from each paycheck.

Then thoughts turned to buying your first house. It had to be big enough to handle a growing family; and even though the mortgage payment was a lot larger than you were paying in rent, it was alright because you knew your family’s income would rise in the years to come.

Besides, you thought your house was a good investment because it would  increase in value over time.

Unfortunately, the Detroit region has suffered economic decline since the 70’s which has put a serious damper on housing values. Even today, according to the Detroit Free Press, the average value of homes sold during the first quarter of 2006 versus 2005 in Novi and Novi Township fell 9 percent, from $260,000 to $237,000.

If you have decided to hold onto your house because you think the housing market will eventually rebound, here are a few things to keep in mind.

First, while the chances are good that the real estate market may eventually rebound, it might not happen for years to come. In the short term, it is just as likely that the value of your house will continue falling, further eroding your investment and your retirement nest egg.

Second, the cost of maintaining your house is rising each year, and major expenses for things like a new roof, furnace, or electrical systems become more likely as time goes by. Also, you know that expenses arising ‘out of the blue’ when you own an older house are especially difficult  to face now that you are living on a fixed income.

There is a solution to these problems that almost 700 other people discovered when they moved to Fox Run.