southsider2k5 Posted March 21, 2007 Share Posted March 21, 2007 http://www.associatedcontent.com/article/1...in_detroit.html Where to Start As the city of Detroit suffers from increased job losses in the automotive industry that put the city on the map, bank foreclosures increase at an unprecedented rate. Once a lively boomtown, the city now has entire neighborhoods that are vacant, and the price of buying a house in Detroit has become so low that they are virtually free. While most of the country has benefited from booming real estate markets in recent years, these booms have passed Detroit by. Not only has the city not cashed in on any real estate trends, but the price of real estate has spiraled downwards at a rate that seems more like a free-fall than a drop in the market. In fact, Michigan was the only State to see the value of homes decline in 2006, leaving many to wonder just how much lower prices can fall. Detroit has lost more than half of it's population over the course of the last 30 years. Each year the local auto-makers lose more jobs to foreign production and decreased sales. The city's unemployment rate is consistently at 14%, and more than one-third of residents who remained in the city are living in poverty. This has proven to be a recipe for disaster as banks are forced to foreclose on more and more homes with each passing month. Not only are banks being forced to foreclose on the properties, but in many cases they have to turn around and sell them at a loss. Houses that were selling for $70,000 just two years ago are now struggling to bring in half that much. This fact is even more disappointing when you consider that even the higher price from two years ago was far below the original value of the home. Dave Webb, one of the owners of the Hudson and Marshall auction company, said that Michigan in general, but particularly Detroit, had become a very high volume location for his auction company. Webb's Texas based auction firm conducted auctions on more than 300 homes in Detroit over the weekend. At one point, the fast talking auctioneer stopped to express disbelief as bidding on a very nice looking house ground to a halt at just $29,000. "Folks, the ground underneath the house goes with it. You do know that, right?" he offered. Out of the 300 properties auctioned over the weekend, almost none of them broke the $30,000 barrier. Prices went as low as $1,300 for a boarded up bungalow on the West Side of the city. One buyer got a bargain on a four-bedroom house near the original MoTown recording studio, which struggled to bring $7,000 in the auction. The average price of a used car in the United States cost more than the house sold for. "These people that are buying have got to look at holding on for five to seven years," Webb told Reuters news service. "The key is holding power." Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted March 21, 2007 Share Posted March 21, 2007 QUOTE(southsider2k5 @ Mar 21, 2007 -> 09:55 AM) http://www.associatedcontent.com/article/1...in_detroit.html Smells like an investment opportunity to me, if you have the cash. I mean, Detroit is in shambles, but $7,000 for a house on a city lot?! Link to comment Share on other sites More sharing options...
Queen Prawn Posted March 21, 2007 Share Posted March 21, 2007 There are similar houses available for that price in Decatur, IL (sp?). When in techsupport last week, my coworker and I were having a competition to see who could find the cheapest and the most expensive house on various real estate sites. Link to comment Share on other sites More sharing options...
southsider2k5 Posted March 21, 2007 Author Share Posted March 21, 2007 QUOTE(NorthSideSox72 @ Mar 21, 2007 -> 09:58 AM) Smells like an investment opportunity to me, if you have the cash. I mean, Detroit is in shambles, but $7,000 for a house on a city lot?! You don't even have to go that far. Look at real estate in Gary IN. Link to comment Share on other sites More sharing options...
Balta1701 Posted March 21, 2007 Share Posted March 21, 2007 QUOTE(southsider2k5 @ Mar 21, 2007 -> 10:11 AM) You don't even have to go that far. Look at real estate in Gary IN. Nightmares... Link to comment Share on other sites More sharing options...
southsider2k5 Posted March 21, 2007 Author Share Posted March 21, 2007 QUOTE(Balta1701 @ Mar 21, 2007 -> 12:16 PM) Nightmares... Its pretty much the exact same situation as Detroit, except on about 1/10 scale. Its sad really. Link to comment Share on other sites More sharing options...
DrunkBomber Posted March 21, 2007 Share Posted March 21, 2007 Link heres a house in Detroit for $175. The estimated mortgage is $1 per month. It has fire damage but the land alone has to be worth more than that Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted March 22, 2007 Share Posted March 22, 2007 QUOTE(DrunkBomber @ Mar 21, 2007 -> 06:05 PM) Link heres a house in Detroit for $175. The estimated mortgage is $1 per month. It has fire damage but the land alone has to be worth more than that Jeez. Link to comment Share on other sites More sharing options...
Iwritecode Posted March 22, 2007 Share Posted March 22, 2007 QUOTE(southsider2k5 @ Mar 21, 2007 -> 12:11 PM) You don't even have to go that far. Look at real estate in Gary IN. Rockford was voted "most affordable housing" a couple of years ago. I did a search and found 31 houses for $30,000 or less. The cheapest was a 3-bedroom with a garage and basement for $8000. Link to comment Share on other sites More sharing options...
Texsox Posted March 22, 2007 Share Posted March 22, 2007 Location, Location, Location Link to comment Share on other sites More sharing options...
EvilMonkey Posted March 26, 2007 Share Posted March 26, 2007 And to think I watched an episode of Flip That House, where the house being flipped had foundation damage, needed almost all new windows, just about every interior wall had holes in the drywall, cabinets were missing doors and partially off the wall, had a rotting deck and a garage that needed to be torn down, that was purchased, PRE FLIP, for $345,000. Of course, the location was California. Pre-flip, it would have been a mansion in detroit! Link to comment Share on other sites More sharing options...
Mplssoxfan Posted March 27, 2007 Share Posted March 27, 2007 (edited) QUOTE(DrunkBomber @ Mar 21, 2007 -> 06:05 PM) Link heres a house in Detroit for $175. The estimated mortgage is $1 per month. It has fire damage but the land alone has to be worth more than that I'm kind of hoping I can go to Key West, hypnotize a homeowner into believing they live in Detroit, and buy a property. It's the only way I can afford anything in that city. The property listed in the link would be worth $450,000 there. Easily. Edited March 27, 2007 by Mplssoxfan Link to comment Share on other sites More sharing options...
LosMediasBlancas Posted March 27, 2007 Share Posted March 27, 2007 QUOTE(NorthSideSox72 @ Mar 21, 2007 -> 09:58 AM) Smells like an investment opportunity to me, if you have the cash. I mean, Detroit is in shambles, but $7,000 for a house on a city lot?! Exactly, buy it, sit on it and wait it out. What happened to the Detroit renaissance I kept hearing about few years ago? BTW, how's you NM situation going? Link to comment Share on other sites More sharing options...
NorthSideSox72 Posted March 27, 2007 Share Posted March 27, 2007 QUOTE(LosMediasBlancas @ Mar 27, 2007 -> 12:51 PM) Exactly, buy it, sit on it and wait it out. What happened to the Detroit renaissance I kept hearing about few years ago? BTW, how's you NM situation going? We bought 25 acres, wooded, in the mountains in NM. Totally awesome. 2 hour drive from ABQ airport, moderate climate (7000' but sun 310 days a year), big pine trees for shade, great view of the continental divide ridgeline, even a seasonal creek through the property. Can't wait to go explore it more. If you need any more info or help for your situation, PM me. Link to comment Share on other sites More sharing options...
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