Question:
“I’ve heard that a lot of the real estate in Detroit can be bought for just a couple hundred dollars. So why don’t people buy it up and wait for the market to improve? What’s the catch?”
Answer:
That may well be a good idea.
After all, often the best time to buy any investment is when the situation looks like it can’t get any worse. But…
Some downsides:
- Whatever you can get for a couple hundred dollars (if true) would have to be pretty bad
- You’d have to pay property taxes
- You’d have to pay for upkeep. If you don’t, I’ve heard the city charges some hefty fines
- Vacant properties attract squatters, a tough problem to deal with, let alone from long distance
- Possible liability if someone was hurt on your property, especially if you’re not maintaining it
But go check it out. If it’s a good opportunity, let me know and I’ll share it with my readers!
