The Guardian finds the whole thing rather puzzling.
Source link: http://archive.mises.org/12133/can-i-borrow-a-dollar-to-buy-a-house-in-detroit/
Can I borrow a dollar to buy a house in Detroit?
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Where Is The Housing Market Going?
What we see in Detroit is a capital consumption symptom of a socialist economy. When it is all consumed socialism will have reached its ultimate destiny – a two class system made up of a parasitic State-connected class and the second class citizens with no incentive to be productive.
I live in the Detroit area, and drive through the city proper every day. It is a sad and chilling example of socialist (or quasi-socialist anyways) economic policies.
And a great example of ABCT. Lots of ruins of former factories.
I has nothing to do with socialism.It is US kapitalism.The worst of all!
At $1 it’s still is a bad deal. The taxes will soon ruin your investment prospects, if the crime and vandalism doesn’t. I know plenty of people who’ve tried, either buying and renting the house out, or living there. Eventually, they just walk away. It isn’t even worth the effort to sell. The only thing that will save Detroit is for the population to drop far enough that it no longer has any political value. Then maybe the surrounding suburbs will be able to recolonize the place from the margins.
Obviously the 1$ price is omitting info…. taxes, mortgage or something.
Otherwise I’ll buy 100 houses, build tech hippie commune… then something.. step 3: PROFIT!
yes! count me in:
http://www.youtube.com/watch?v=y-eak9Jz3_k
i’m in on this too. detroit techno-commune city ftw!
It’d just get stormed by some angry anti-gentrification mob. Detroit is democracy at its most pure.
Actually, I did spend time in the first dot-com boom in a techno-commune in west logan’s square, chicago. The 4-flat we purchased was an ex-crackhouse, and our storefront visitors were half-technology oriented and half disgruntled would-be purchasers of the previous business’ product. After a while, the neighborhood got used to us being there. I can’t imagine it being any worse in Detroit — in fact, I think they’d be like they were before: happy that their perceived home values were going up by more business entering the area.
Unfortunately, nothing makes Detroiters happy but a handout. Hence the whole 50% jobless rate thing:
http://www.huffingtonpost.com/2009/12/16/detroits-unemployment-rat_n_394559.html
From the URL:
“We gave a $90,000 house to a lady who was living in a car. She had four children. It didn’t cost her a dime. We had over a thousand people apply for it. It’s probably worth $35,000 now.”
Who paid the back taxes?
Meanwhile housing prices in the DC area are largely unaffected.
I signed up at Remax.com and picked out a $1 house to buy because I’m originally from the Ohio side of the Detroit-Toledo metro area and am thinking about going to UD’s master’s program.
I was dissuaded when I looked further down the page and say that Remax estimated it would be $2500 in taxes every year. No thanks, I’d rather not pay that much to face the constant threat of being broken into or shot.
It’s not as if you actually have to pay the taxes. For $1 or even for a few thousand dollars it’d be worth it to live in the house for a few years and then abandon it. At these prices I’m surprised the whole city hasn’t turned into marijuana grow houses.
Now THAT is a proactive “grass”-roots idea to rehabilitate the area!
They’d just get broken into and raided. That’s why they’re $1 in the first place, they’re a liability for the realty firms. Detroit is America’s burning-est (come visit the arson capital of the US!) hell hole.
Buy it for $1 and sell it next year for $10
I have heard of this type of situation in Europe but after the 2nd world war. Everything comes back and so will Detroit.
Richard in Paris, there is no world war going on in Detroit! Unemployment is no doubt increasing rapidly in Detroit that it is becoming hard for a family to purchase a house of their dream. One should try to shift to another place where they can get employment and a nice place to live in.
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Richard in Paris, there is no world war going on in Detroit! Unemployment is no doubt increasing rapidly in Detroit that it is becoming hard for a family to purchase a house of their dream. One should try to shift to another place where they can get employment and a nice place to live in.
http://www.iproperty.dk/properties/index.php?mod=properties&func=displayListing&mob_type=sale&auctype=1
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