I spend more time than I should on Zillow and dreaming about building a real estate empire… With Detroit’s bankruptcy, I started thinking about whether things could get better one day for Detroit, or was it doomed to go into deeper and deeper recessions year after year. I remember first checking properties in Flint after Michael Moore mentioned in one of his movies that real estate was in crisis. It may have been about 7 years ago and there is no sign of improvement.
If you believe real estate will go up some day, or at least that the price of the land the house is built on is worth something, then take that $100 bill out of your wallet and go buy a house in Detroit!
This is the house I found after 2 minutes of browsing.
I love the estimated mortgage at $0, but you need to notice that the owner bought it for $600 18 months ago. He is taking an 83% loss on that one. From the looks of it, the property needs a lot of TLC, or a tear down, but just the front door will cost you more than $100 to buy new! I find it incredible that those houses don’t go at least for the price of construction. Here in Guatemala people would be tearing them down, selling scrap wood, metals and anything one can sell.
There is a larger choice of properties under $1,000, if you really feel like splurging, you can get a nice little brick house with a lovely garden for $1,250.
For many of you New York and Cali readers, it is not even the cost of one month rent! This one looks pretty cozy and in much better shape than the $100 one. If you can rent it for $200 a month, you will have a house paid for by your tenants in 6 months. Now the question is are there any tenants left in Detroit? If I were to live there for whatever reason, I would surely buy a house. Even as a student, buying this $1,250 house and living there for your 5 years of college means $20 in monthly accommodation costs. Need cash for a down payment? Qualify for a title loan and get your cash delivered fast!
Then, there are the taxes. Detroit is bankrupt, and for the few taxpayers who do pay, taxes must be through the roof. The heating bill will also be much more than $20 during those long winter months.
I also wonder where did all those people go, and if the neighborhoods are like ghost towns. Look at this one below, it is really nice. And expensive for Detroit haha. There still are chairs on the terrace and a car in the driveway, the garden is lovingly taken care of… And with all the stone work, the brick chimney, the tile roof… there is a lot of money in materials alone, much more than $17,900.
Update: This house (click to see more) is just $1, sorry I tried to sell you such expensive houses haha. And yet, it has been on sale for 2 years…
What do you think? Would you buy a $100 house or a cheap foreclosure to invest?
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