At the end of my post yesterday regarding the incredibly cheap properties in Detroit I finished off by asking ‘What’s the catch?”. The videos below provide a very good overview of the issues facing the city right now and particularly how it is reflected through property prices and urban decay. It really is a very sad situation that the city finds itself in and I’d encourage you to watch a few of the reports below, particularly the last one that examines the decline of Detroit through the eyes of the local city firefighters.
If you’ve been watching the news over the last few weeks then you may have seen the unfortunate news about the city of Detroit in the US going into bankruptcy. It’s estimated that the city is in debt to the order of $18 – 20 billion. When looking into the history of Detroit and it’s decline over the years it’s fascinating to see the effect of the auto industry and the impact it had when things went offshore and downhill. In the 1950’s Detroit had a population of over 1.8 million. Between 2000 and 2010 it’s stated that the population dropped by over 25%. From the height of the 50’s it’s now estimated to be just over 700,000. The impact that this has had on real estate is on one hand amazing but on the other most likely disastrous. Below are a few currently listed properties that you could pick up for a steal. Click on the pictures to see more.
- Last sold in June of 2004 for $59,000, this 3 bedroom house that is close to 100 years old has dropped by an astonishing 93% and is now on the market for $4000, yes you read it correctly, $4000! With the agent’s website listing a potential rent of $742 a month I can’t say I’ve ever seen a property with the potential to pay itself off in 12 months. It does awaken the skeptic in me though…let’s explore some more.
- If you’ve got a few more dollars to spend then this following property may be of more interest at $12,000. It’s also got 3 beds and 1 bath but by the looks of it could do with a bit of work. Also, these houses could be in any type of area but this one does come with a virtual tour. I’m afraid that the music accompanying the pictures doesn’t add an awful lot.
- The final one here I think is really pretty stunning considering what you can get when choosing to spend a more significant amount of money on a property. With 4 beds and 2.5 baths it’s amazes me that for $50,000 you can get what looks to be a completely livable home with spectacular grounds. The street-view on the website looks great…what’s the catch?
There are plenty of catches I’m sure with the purchase of any property in a once thriving city which has halved it’s population, is filing for bankruptcy and has an unemployment rate of around 16%. A simple investigation into property in Detroit will reveal that there are thousands of empty homes throughout the city and that the council has struggled to provide basic services due to over half of Detroit’s property owners failing to pay their tax bills. It’s a sorry state of affairs and one can only hope that a city such as this can recover.