Monday, September 29, 2014

Detroit Real Estate As An Opportuniy

I was watching PBS coverage of Detroit's efforts to demolish blighted houses, and I found myself wondering how cheap houses in Detroit have become.  The answer was "very cheap."  This 3 bedroom 1 1/2 bath house lists for $750.  That;s not a down payment, but purchase price.  Ir looks like a nice ranch-style brick home.  Okay, it is Detroit, but Michigan is shall-issue. If you are retired, or self-employed, that makes housing costs effectively zero.  My mistake that's a rental.

Do you have a really big family?  This house is 6,202 square feet, 14 bedrooms, 14 bathrooms.  #239,900.

5 comments:

Rob K said...

That's $750/month rent, not $750 to purchase. Though from what I'd heard of other houses selling for there, I believed it. And I sure wouldn't pay that in rent for that house!

James B. Shearer said...

The listing linked appears to be a rental. There are lots of houses for sale cheap ($10,000 or so and up) in Detroit but I doubt they are bargains. Any area of the country that is losing population is going to have cheap houses and I expect many such places are a better bet for retirees than Detroit.

Michael The Magnificent said...

I'm no real estate expert, but I looked into this a few years back. My memory tells me you'd have to pay the back taxes, as well as the property taxes going forward, and that Detroit has a unique method of calculating the property taxes that would not reflect the $750 sale price.

asdf said...

Clayton, I think that's a rental property. They're asking $750 per month. Nearby homes are going for $60,000 - $140,000. Still cheap, but not $750.

Magnafan said...

I investigated one neighborhood--New Center-- in Detroit last January. The city has hit bottom and is on the way back. It is true that a property may have a tax arrears, so check carefully. Significant upgrading is happening in several areas of Detroit. I looked at a 2br garden apartment on a lovely art deco block with mature trees and a good feel minutes from downtown. $33,000.