Anyone buying up detroit?
- Thread starter james_w
- Start date
last time i checked detroit was where cars were made...
last time i checked half the population left there because jobs were being cut.
I guess it would be like buying a place in the Karatha when all the iron ore mines closed...
i also have read that the purchase price migt be $100 for a house, but you have to pay yearly amounts to government to own the house...
different set up over there than here.
last time i checked half the population left there because jobs were being cut.
I guess it would be like buying a place in the Karatha when all the iron ore mines closed...
i also have read that the purchase price migt be $100 for a house, but you have to pay yearly amounts to government to own the house...
different set up over there than here.
Thanks ozperp good to have an opinion from someone who was in the US not long ago
I am thinking long term as I just turned 30 in oct surely in 20 years these would make quite a good return since there next to nothing I am aware of the taxes etc.
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yeah same thinking in 20yrs time what will they be worth and yeah
the yearly tax isn't bad at all depends on buying price
Why? Why do you expect the fundamentals of Detroit to improve? Next to nothing can go down into even less, and it'll cost you in taxes and vacancies?
aha do you know how much houses in the bowen basin costs when the mines closed...
If the fundamentals of Detroit turn around, sure, they probably are bargains now. But why do you expect them to? You're talking about a city that's losing people fast, and there is talk of changing a lot of the metro land into FARMLAND to put a floor on property values.
plenty of aussies are buying there mate aswell as US locals etc
personally I would rather buy in florida investing aint personal
besides there like 1-5k each that's alot of homes people always need somewhere to live search google it's not as silly as it sounds plenty snapping em up and what happens when a tonne of buyers keeep buying...
anyways just an idea might only buy a few if it goes belly up well who cares goes the other way great ;-)
Quoted by Warren Buffet:
be fearful when others are greedy and greedy when others are fearful.
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Did I read correctly that you can get a house in Detroit for under $5,000k?
What's the catch? If the catch is that people think it's going to be a ghost town, then you should buy.
What's the catch? If the catch is that people think it's going to be a ghost town, then you should buy.
Yeah you read correct catch is buying in bulk and alot need renos
got an email from a friend over there about them also you got to make sure theres no back taxes.
Based on this quote, which side of the equation does Detroit fit into based on your other posts.......
There are no tenants
and these could be in new housing estates with vandalised homes so people would be afraid to live there
Plenty of Aussies spend more money on lottery tickets than they do on investments. What's your point? Other people doing something isn't a reason to do it yourself - what if they're making the mistake of a lifetime by snapping up 20 slum properties?
If it goes belly up you could have 3 properties costing you (?) $2-3k per year each in taxes, local council, school fees etc plus
- they are earning you nothing
- you may still need to have insurance on the property in case a drifter hurts himself inside (who knows, he may not win, but do you really want to have to go through the US legal system to be validated right?)
- or if you don't want to pay insurance, then pay for the demolition of the house
- or if you want to persist in trying to find a tenant, cough up the cost of continuous repairs as the neighbourhood kids keep breaking all the windows and the crims keep stealing all the piping
3 yrs down the track; so it's all going wrong? Solution - sell it, flog it off for $1. But wait, that's what people are doing now yet not enough people are interested to take all these houses off their hands because of all the problems listed above - so you have to continue to hold without an exit option and the ongoing problems listed above.
Sorry, but there's got to be better investments out there than that - US or otherwise. I'd rather spend $100k in the US buying a good investment, in a growing area with tenant demand, than taking responsibility and liability for a dog without good fundamentals. The risk/reward scenario doesn't stack up at this stage of the game. Perhaps if there was a MASSIVE turnaround in Detroit's prospects like GM creating the mother of all hybrid cars or better yet, a car that runs on salt water, but until then......
and you will be competing with everyone else and buy houses for 20 times more then they are now and no way would I invest 100k anywhere in the US atm the whole place is a mess but a few k for a punt not so bad
and my point is it aint small players buying up I guess from the replies noone here has had the balls to buy any, what if australia does the same thing on your coastal properties or otherwise wait it already happened in a few places not as bad but some down 40% in our backyard
and if your knew the tax system it wouldn't cost me stuffall to hold unless ...
IT GOES UP IN VALUE anyway this is all in theory I prob won't buy becuase
1. it's along way away
2. renos will need doing and since not local costly although I do know a few locals there..
3. yeah I aint got the balls either but next time I think about buying some high priced car or other item I might buy just for the hell of it and say well that was fun or wow that was a good idea lol
4. I haven't been asleep in 24hours so prob not thinking straight.
and you will be competing with everyone else and buy houses for 20 times more then they are now and no way would I invest 100k anywhere in the US atm the whole place is a mess but a few k for a punt not so bad
No, you wouldn't do that here so why would you do it in the US? I'm talking about being presented with an investment returning say 11% yield on your invested $100k plus whatever capital growth that may come with good prospects of the area, secure tenants etc.
vs
Buying a property for nothing that you may not be able to rent out and will be draining cash from you.
The first investment has good fundamentals, good returns and safer. The second one will very likely be a cashflow drain and has no certainity (and not even probability at this stage) of capital growth.
You may as well invest your money (or in the case of Detroit property - the ongoing cash flow drain) in a string of stocks on the US OTC board - the fundamentals would be just as good.
cost of heating a home in detroit is about $1500pa on average.
considering most (employed!) people's wage per year in detroit is about $15k - that's about 10% of their wage.
what are they going to do if they get in trouble - pay your rent, or keep the heat on in minus 10ºC weather?
then you have issues like Black Fungus, wood rot, rust (from the salt water off the salted roads blowing up into your gutters / windows etc), absurbly high unemployment, no prospect of rent rises, high taxes and high LL insurance bills.
considering most (employed!) people's wage per year in detroit is about $15k - that's about 10% of their wage.
what are they going to do if they get in trouble - pay your rent, or keep the heat on in minus 10ºC weather?
then you have issues like Black Fungus, wood rot, rust (from the salt water off the salted roads blowing up into your gutters / windows etc), absurbly high unemployment, no prospect of rent rises, high taxes and high LL insurance bills.
Sorry, I don't go for the headlines - perhaps a few overpriced Gold Coast mansions dropped 40% from their original inflated asking price.
Do what you want mate, I couldn't really give a stuff. Just trying to point out that a "$0" investment isn't necessarily a good investment.
Sorry, I don't go for the headlines - perhaps a few overpriced Gold Coast mansions dropped 40% from their original inflated asking price.
Do what you want mate, I couldn't really give a stuff. Just trying to point out that a "$0" investment isn't necessarily a good investment.
wow didn't expect this thread to hit 2 pages but anyways I don't go for headlines either if I did I wouldn't have what I got now or follow sheep
was just an idea I aint gonna buy the whole town
wow heating is expensive yeah didn't even think of that
I need some coffe better grab a beer
tell you what I bet ya a buck a chinamen buys up most of the place that way I only loose a buck if I'm wrong....
