Check out the above article. While this article presents 5 very good reasons that real estate prices are going down, it omits the BIGGEST REASON, which is that the federal government is INSOLVENT! Medicare is broke. Social Security is putting out more in benefits in 2010 than it takes in - YEARS AHEAD OF PREDICTIONS! The government is printing fake money as if there is no tomorrow. Fannie and Freddie have a blank check to cover all their losses, etc, etc, etc. The big banks are only solvent because the government is transferring money from the middle class to the big banks. The FED is buying 80% of US debt because the rest of the world doesn’t want it any longer. In other words, the US economy is going to collapse! That’s the main reason that property prices will go lower - MUCH LOWER!
I’m not saying that today isn’t a good day to buy real estate. I bought all mine over the past several years, most before the big bust and ALL of them are still making good money - BECAUSE I BOUGHT AT A HUGE DISCOUNT. I certainly wouldn’t wait to buy property until prices have bottomed out, because you won’t know when that is until after it’s happened. However, what I would suggest is that you buy at a huge discount today, tomorrow, and every day. Prices are down and IMO they’re going a lot lower. Today is not a once in a lifetime opportunity, but it’s still pretty good.
I don’t believe in once in a lifetime opportunities either. I do believe this market is an opportunity you don’t want to miss.
In a city near me, there was a tax auction. Two families were selling for $2,000, lots were selling for $100, commercial buildings selling for $3000. About three years ago…two families were selling for $165, Lots for $25, commercial buildings, $500 up!
The city was so happy to just sell, they are doing it again in a few months. There is another city doing it next month for 32 properties.
Once in a lifetime no, opportunity of course!
Also in my city, a commercial building with a tax value of $1.5m sold at auction for $585.
The problem is people got way to greedy and has caused systematic failure across the board in many sectors. Real Estate is going to take years to recover just like everything else will.
In my opinion, the only way for the economy to recover is for people to take money out of the market and invest locally. And by invest, I mean create something
Just to clarify about Detroit. I remember a discussion from another board recently and yes, you can still buy million dollar condos and houses in downtown Detroit.
And yes, you can buy single families at tax sales for $3,000 in certain areas of Detroit. No, they are not liveable let alone occupiable. Even worse. If you’ve managed to find one that’s not been fire bombed, you still have to sign an ACR inspection with a city inspector at closing where you sign that you must carry out repairs to the property before occupying it. And this can get very expensive because once a building is vacant, in a matter of days, it’s completely stripped of copper, it’s furnace, and anything else of value by bandit scrappers who break a window and liquidate anything of value during the middle of the day. Bandits will even remove your exhaust system and tires on your car in the middle of the day in a matter of minutes if it’s parked in the driveway in those areas.
And, yes, I’ve met people who’ve still made money at tax auctions buying property in Detroit doing creative things to those properties that didn’t include ever getting those properties occupied or flipping it to Joe Contractor. You’ve really got to know what you’re doing at a Detroit Tax Sale.