Is it good idea to buy home in Detroit, Michigan as they are available very cheap (5000 USD)?

Question

http://www.realtor.com/search/searchresults.aspx?ctid=2959&ml=3&mnp=7&mxp=7&bd=4&bth=4&typ=7

Answer 1

If you plan to stay there go ahead and find a good nice and big property closer to your workplace (i bet the one for $5000 is a shantel where you have to spend $20000 to repair or a good place in a wrong neighbourhood). But still the home valuations are attractive and a good time to buy.

If you plan to buy it as investment not a good idea at all. You might not get rentals easily there are too many in the market. If you leave it unattended there will be breakins. If you leave it ignored you know what happens especially in Detroit.

Answer 2

depends completely on if you like the home and the area - then buy it

Answer 3

There are many good inexpensive homes in Detroit. For those homes under (around) $35,000 you may have to pay cash. I'm not aware of any lender offering mortgages under that amount.

I do suggest using the local Multiple Listing Service public website rather than Realtor.com  Not all homes in the MLS go to that site and there are delays.  http://MoveInMichigan.com

In some cases, homes in this price range have been stripped of fixtures, copper plumbing, vent pipes and drains, furnaces, windows, doors. etc. So I do suggest driving by each home first.  Please do not go onto the property, even though it's for sale thats trespassing.

Michigan laws require agents to work for the homeowner unless under a signed buyer's agency agreement. A Buyer's Agent is legally obligated to work for and negotiate the best price for you on a home.

Answer 4

I also am tempted by the low prices.  The best thing is if you would live in the house yourself.  If you buy it as a rental, you will have trouble because the renters are struggling in Detroit. Nice people but there aren't any jobs so they can't pay you.  I wondered about buying a house and just letting it sit until i can sell it for a profit. The prices are so good.

Answer 5

I lived in Detroit 30 years ago and the city has not improved since I left.

While homes are cheap, they probably need lots of repairs.

Finding reliable contractors will be difficult.

Lots of theft of materials.

Real estate taxes in Detroit are very high  and services very low compared to outlying suburbs

There's a million rentals out looking for tenants who will make the payments.

Unless you live in the area to watch your investment, I would avoid it.

I saw the link you included.  Not in the newer areas of Detroit.

Answer 6

In 1980, houses in that area sold for $4000. Now, adjusted for inflation of the last 28 years, they should be worth about $20,000, just to have kept value.

I am even sure, you can pick one up for $1 from the city, they have about 60,000 of them sitting their, boarded up.

Some people buy them by the dozen (slumlords) and rent them out for 400 a month. But you have to be a tough mother to collect the rent.

Answer 7

It may be a good idea to buy a house.

It's probably not a good idea to live there.