Detroit? Is it as Cheap & Worth the Gamble?

Discussion in 'North America Real Estate' started by John Fleet, Aug 23, 2016.

  1. John Fleet

    John Fleet New Member

    Hello,

    I was curious whether property in Detroit is as cheap as I've heard? I've heard you can buy homes for as little as a couple of grand, excluding fees & tax.
    Also, is it worth the gamble? I hear news about entrepreneurs investing and starting businesses in Detroit, trying to kickstart the economy.
     
  2. Be very careful about the Detroit property market which has been "undervalued" for many years but has not actually moved forward. There is a reason why properties are available at rock bottom prices. If you read the local press you will see there are issues with squatters and outstanding property taxes but there does seem to be interest in focused areas. This is one where you really need to do your research otherwise you could end up with a "cheap property" you might never be able to sell.
     
  3. PropEx

    PropEx Member

    I wouldn't say it is gamble at all because the prices are so undervalued the yield you will be getting will probably be anything up to 35% sometimes more. Keep it for 10 years and even if you can't sell it, who cares?
     
  4. Longterminvestor

    Longterminvestor Administrator

    In theory, if you can obtain a rental yield of over 30% then you could get your money back in less than 3-4 years. At the end of the day, people do need somewhere to live and if they cannot afford their own property then the state will be forced to cover accommodation expenses.
     
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