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Old 07-23-2008, 12:45 PM
 
3 posts, read 10,764 times
Reputation: 11

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As an investor looking to invest into Detroit I am finding that although the pricing of the homes are enticing it seems that the taxes are so high ($5000/yr. on a home I can purchase for $20,000) that it's impossible to make the numbers work based on the amount of rent you can ask. So what is the city going to do with this huge supply of beautiful homes in nice neighborhoods now that financing has dried up and it's impractical for investors? Obviously if something isn't done, and soon, the majority of these beautiful homes will be stripped to the point of no return. I realize that the city is in a dire position right now and cannot afford losing any more tax base, but unless some of the load is shifted to other areas ( eg: increasing sales tax,.. ?). Incentives for the investor much like the enterprise zones that were created for owner occupants are essential in order to make investing worthwhile. At this point I feel there is absolutely no hope of filling all these homes with owner occupants (can't get financing, taxes, school system, etc..) I can only imagine whats to come. Any comments or ideas ?
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Old 07-23-2008, 02:01 PM
 
225 posts, read 750,232 times
Reputation: 122
I don't think the city WANTS you to invest in Detroit. The population isn't growing and it's not going to. I think there's a big conspiracy to let as many neighborhoods fall apart as possible, pick up the land cheap, bulldoze it and start over. At least that's what they'd do if they were smart....Get rid of the excess housing stock to the point where there aren't 10 houses for every resident.
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Old 07-23-2008, 02:21 PM
 
55,056 posts, read 43,917,363 times
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I can't get on-board that Detroit has any such clever plan. The current mayor is a hack and the typical politician lacks any business sense whatsoever. Basically, they have driven out the tax base and view companies and profits as an evil.

It's hard to offer a competitive environment when you have such a bloated inefficient beauracracy.
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Old 07-23-2008, 03:57 PM
 
866 posts, read 3,877,919 times
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I agree with Nearborn, if someone were looking to invest in Detroit then they should buy up as much land as they can (if it is finacially possible) and maybe 10-15 years down the road when many of the crippling neighborhoods are all but gone, starting over may be a option for the city. No one really knows what will happen though. If I had the money to invest in Detroit it would be on the eastside near the nice areas such as Indian Village and the Grosse Pointes. Those two areas could be worth something down the road.

** Instead of investing in the city many are investing in the suburbs, again this is only if you have the money to do so. There are many homes that you can buy cheap at auctions that are foreclosed homes. Good luck and invest wisely!
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Old 07-24-2008, 05:12 PM
 
1 posts, read 4,686 times
Reputation: 10
Dexterguy
Thanks for the info, just put a contract on a house near Mack Ave, about a mile west of Grosse Pointe. what do you think of safety and crime rate in that area?

Thanks
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Old 07-24-2008, 06:04 PM
 
866 posts, read 3,877,919 times
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Quote:
Originally Posted by AlexRami View Post
Dexterguy
Thanks for the info, just put a contract on a house near Mack Ave, about a mile west of Grosse Pointe. what do you think of safety and crime rate in that area?

Thanks
What area exactly is it in? Which Pointe is it west of? If it is close to Grosse Pointe the safety of the neighborhood should be better than some of the rest of the City of Detroit. I believe that the area wrapping around the Pointes will be worth something one day. I was actually looking at some investment properties in Detroit just a few houses from Grosse Pointe Park a few months ago. But unfortunately I just don't have the extra money to buy.
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Old 07-25-2008, 11:54 PM
 
3,853 posts, read 11,851,027 times
Reputation: 2521
Quote:
Originally Posted by Nearborn View Post
I don't think the city WANTS you to invest in Detroit. The population isn't growing and it's not going to. I think there's a big conspiracy to let as many neighborhoods fall apart as possible, pick up the land cheap, bulldoze it and start over. At least that's what they'd do if they were smart....Get rid of the excess housing stock to the point where there aren't 10 houses for every resident.
lol yea. I hear firewood is selling for bundles these days. Just dismantle the houses, export all the raw materials for scrap or whatever and just let nature take its course. Detroit is just like one of those small cities on its last leg.
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Old 07-26-2008, 07:59 AM
 
225 posts, read 750,232 times
Reputation: 122
I'd like to hear from the folks from out of town who have been coming here to invest in cheap housing in the city of Detroit. How's it going fellas?
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Old 02-21-2009, 11:29 AM
 
Location: SE Michigan
14 posts, read 49,344 times
Reputation: 22
Quote:
Originally Posted by Nearborn View Post
I don't think the city WANTS you to invest in Detroit. The population isn't growing and it's not going to. I think there's a big conspiracy to let as many neighborhoods fall apart as possible, pick up the land cheap, bulldoze it and start over. At least that's what they'd do if they were smart....Get rid of the excess housing stock to the point where there aren't 10 houses for every resident.
There definitely is a conspiracy and a municipal racket. Unjustifiable property taxes, ACR expectations, CofO impossibilities, city inspections, blight ticketing/fine=jail time, insurance, etc. make it impossible to make the numbers work from an investing or owner-occupant standpoint.

How can they justify $5000/yr taxes on a 2 br home 800 sq. ft home with crashing property values all around?

I have seen some homes in the desirable areas with $20000/yr taxes pulling a whopping $10000 water bill with only 1 occupant! One person can NOT flush $10000 worth of $%^@&&! It's impossible but the water usage bill is based on sewage which is unmetered and created out of thin air. You can not dispute the charges! This has happened in the Boston-Edison, Chicago, Sherwood Forest, Palmer Woods, Rosedale Park and many other desirable areas.

The more vacant homes on a block...unpaid water bills and taxes are passed onto those who remain--hence the real truth behind the numbers. Many of the residents who are grandfathered in on their taxes are losing/walked away from their homes to outrageous waterbills! If you don't pay your waterbill then you can lose your home!

A conspiracy indeed.
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Old 02-22-2009, 11:05 PM
 
Location: Rockport Texas from El Paso
2,601 posts, read 7,686,194 times
Reputation: 1583
Detroit is projected to drop another 22% in the next year google housing predictor - very independent. So if you put 20% down you will be under water at year end. yes you!

I like the old buildings and one day may pick one up for a dollar or two a sq ft but for INVESTMENT use demographics and pick a place thats growing South Texas is still cheap and growing fast. For cheap old architecture go with Detroit.
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