Houses in Detroit

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Detroit is a hole....
 
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Can't you look at the countries that are not in the EU yet but will be in the next few years, find some cheap land buy it then (hopefully) profit once it joins EU?
 
Firestar_3x said:
Buy a block of flats instead....

http://www.rightmove.co.uk/overseas-property/property-44108792.html

PURCHASE PRICE: $149,000

RENTAL INCOME: $48,000 per annum

OUTGOINGS:
Taxes: $2,230
Insurance: $1,500
Utilities: $3,780
Management: $2,400
Maintenance: $1,200

TOTAL OUTGOINGS: $11,110

NET INCOME: $36,890

NET YIELD: 24.8%
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Assuming you could rent those out (debatable), the type of folk you get in will be mostly druggys and stuff.

If you think maintenance on a block of flats is going to come in at $100 a month you're insane, especially if you're renting them to less reputable folk.

Not to mention the cost of utilities and management will be way higher - insurance and tax I don't know about in the states but I imagine those are low - heating a 15 bedroom building will cost more than that a month.

In essence, those figures are ********.
 
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They have some great looking cheap houses, but the risk is crime. Plus midwest weather sucks, horrid storms & hot summers. I use to live in extreem southern illinois, so weather is prob. a bit diferent in Detroit.
 
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You can find mortgage advisors that deal only with international properties, doesn't cost any more, just regular business, and secure a mortgage with them. You'll probably need a 40% deposit as standard due to being a non-citizen.

There were houses in detroit a few years ago selling for $1,000 (yes, one thousand). Know how much they are worth today? You guessed it, $1,000 (that's one thousand again).

Just because it's low priced does not mean it's cheap.

Do your own research. Of course without risk there is no reward, but you'd be looking at a decade or two before seeing meaningful profit, and you'd have to keep paying taxes every year there, plus all sorts of other community fees and surcharges which doesn't come cheap.
 
So for clarity, the business plan being explored in this thread is:

1) Buy property that is cheap because it is in a particularly undesirable location and although there may be no income there will be ongoing costs.
2) ???
3) Profit!
 
pitchfork said:
If you think maintenance on a block of flats is going to come in at $100 a month you're insane, especially if you're renting them to less reputable folk.
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Seen it before where it quotes figures like that then in the small print it says something like "Averaged over 10 years" and you can bet theres some pretty hefty short term maintenance desperately needed :S

aardvark said:
yeah, i honestly wouldn't be surprised if the city doesn't even exist in 20 years time.
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Wouldn't be suprised if the core of the city rotted away, there are some suburban areas which are pretty decent - its possible in the long term is would break down into a cluster of towns.
 
go and visit the city and you will change your mind. I was there a few months back and I do not think I would take the house for free.

Dont forget about the property tax.

My family bought a really nice place in down town Chicago in the middle of the crisis for very little and it has gone up in value a lot now.
 
(admit too lazy to read thread)

But it's what I fancy doing if I had spare cash. Buy a street or a square for pennies, renovate what's there and when land value's and the neighbour starts on the up maybe try the british approach of knocking down and squeezing a couple of extra houses in.
 
What's to s ay it will go up. It isn't the UK with extremely limited land.
Unless new corporations set up there, then there's little chance of said rise or recovery.
 
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