| House just sold for 1 US dollar? | |
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| Aug 27, 2008 02:55 |   |
 | One dollar can get you what, a large soda at McDonald's or a used VHS movie at 7-Eleven? Except these, what else can you get? A house in Detroit. Don't be surprised. It is true. The subprime crisis has caused great impact on US real estate market. Many people asked loans from the bank for buying them houses. However, they couldn't return the money back to the bank. Thus, the bank forclosed the house and wanna sell it to other people. In January, the house was just sold abou 1100 dollars. However, no people wanna buy it. Without other ways, the bank finally decided to sell the house just for 1 dollar. The original price was about 65000 dollars. After 19 days, the bank finally sold out the house. A local woman bought the house and considered that house to be an investment property. She said she wouldn't live there. If that happened in China, that would be really good news. Sigh! Here is the article: http://www.detnews.com/  |
| Aug 27, 2008 10:10 | #1 |
| For a family of 3+ it would be a good buy providing the neighborhood was free of crime and illegal drugs (good luck) and the family was handy with maintenance. To the dear lady that is buying strictly as an investment, likewise I hope she is capable of making property improvements herself or just has money to burn for others to do it. Rental property on average is a 50% chance of breaking even when comparing expenses to rent revenues and in many instances becomes more of a liability than an asset to the owner. |
| Aug 27, 2008 20:10 | #2 |
| I agree. Fixer uppers for investments are actually more headache than profit. But to a homeless person, it would be more than enough. However, he/she still has to pay property taxes on it and pay electricity, water and heat. Many of those being sold for cheap only look good on the outside. The carpets are either ripped or completely soiled, the doors are falling apart, some sections of the walls are missing, the bathtub has a crack, there is no furnace and the basement gets flooded during rainy season. You might as well destroy the whole house and build a new one. You make it like new, the tenants are going to rip the whole place apart while you, the landlord has to make sure that everything is running fine, nothing broken, the lawn mowed or the snow and ice removed. I know one tenant who rents homes and he has a garage just full of stuff for repairing them and a few helpers/carpenters on his payroll. |
| Aug 27, 2008 22:18 | #3 |
| This old house has little salvage value. Pull it down or just let it be there rather than rent it because rental revenues most likely cannot cover the utility, maitenance, expenses. BTW, what's the lot size. It's too good to be true that this certain lot costs you one dollar. From the long run, this is a good investment coz capital gain on land itself no doubt will be in much more excess of property taxes. |
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