'Property Brothers' See Next Big Real Estate Boom In Detroit

If you are looking to buy a house, you should buy something that you plan to live in long term, according to the “Property Brothers,” who believe Detroit currently offers some of the most enticing real estate prospects.

What To Know: Scott Brothers Global co-founders Jonathon Scott and Drew Scott, best known as the stars of popular television show “Property Brothers,” talked about the current state of the real estate market in an interview on CNBC’s “Squawk Box” Wednesday morning.

Given the rapid rise in mortgage rates over the past couple of years, homeowners are reluctant to sell their homes because they believe moving has become unaffordable.

“But maybe they shouldn’t be leaving their homes anyway,” Jonathon told CNBC.

In the past, homeowners would stay in the same house for decades and even pass the same home down to the next generation, but now people are jumping ship every three to five years, he said.

“Every time you move, you’ve got taxes, you’ve got real estate fees, insurance — all this stuff. It’s a better idea for people to stay in the investment. That’s why we say if you’re going to buy a house, get something you know your family can grow into,” Jonathon said.

Jonathon’s brother Drew noted that others are looking to renovations to increase the value of their existing home and make it suitable for a growing family, or to add an accessory dwelling unit (ADU), but prices are through the roof.

“It’s crazy how much things are costing right now,” Drew said.

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Because of current market conditions, the brothers are looking to add pieces of property to their portfolios that they can rent out long term. There’s just not enough juice to squeeze from the flipping market right now, they said.

One location they are looking at is Detroit. When you look within a city, usually you can pinpoint a certain area of the city that is starting to be redeveloped because it has a lot of potential and then eventually that area becomes a very valuable part of the city, Jonathon said.

“Detroit is like that on a national level. There’s so much money pouring in, so much redevelopment happening that I bet you, in 20 years, it’s going to be one of the most technically advanced cities,” he said.

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Photo: Mingle Media TV on Wikimedia Commons.