This is an response to a contact from Kevin Brass who wrote about the UK investors in the Detroit Housing Market
It is easy for investors 1/3 of the world away to think they are getting a great investment. But I am going over a few of the points the UK investment company made.
1.) First point. They said for about $45,000 you can have a great home in Detroit after fixing it up. But look at the box below. Here is what has happened in Detroit Real estate in the last 360 days.
| Detroit Sold Home Information 2009 ( last 360 days) |
| Range Name |
Price Range |
Number of Listings |
Days on Market |
| |
|
|
|
| |
-25000 to 0 |
1 |
78 |
| |
1 to 25000 |
9821 |
81 |
| |
25,001 to 50,000 |
425 |
109 |
| |
50,001 to 75,000 |
128 |
144 |
| |
75,001 to 100,000 |
95 |
109 |
| |
100,001 to 125,000 |
36 |
148 |
| |
125,001 to 150,000 |
20 |
216 |
| |
150,001 to 175,000 |
6 |
150 |
| |
175,001 to 200,000 |
4 |
53 |
| |
200,001 to 225,000 |
5 |
173 |
| |
225,001 to 250,000 |
1 |
366 |
| |
250,001 to 275,000 |
1 |
212 |
| |
275,001 to 300,000 |
0 |
0 |
| |
300,001 to 325,000 |
1 |
1137 |
| |
325,001 to 350,000 |
0 |
0 |
| |
350,001 to 375,000 |
0 |
0 |
| |
375,001 to 400,000 |
0 |
0 |
| |
400,001 to 401,779 |
1 |
181 |
|
| For the 10545 listings: |
For the 10545 Sold listings: |
| Average List Price |
$12,226.00 |
Average Sold Price |
$10,715.00 |
| Median List Price |
$7,500.00 |
Median Sold Price |
$6,500.00 |
| Highest List Price |
$599,000.00 |
Highest Sold Price |
$401,779.00 |
| Lowest List Price |
$1.00 |
Lowest Sold Price |
$0.00 |
| List Volume |
$128,927,900.00 |
Sales Volume |
$112,990,000.00 |
| Avg. Days On Market |
83 |
Avg. Days On Market |
84 |
|
So if the average sold price was $10,715 then why in your right mind would you put $45,000 into a home. Are you crazy? Do you think that is a wise decision?
93% of the homes sold under $25,000. So why would you but more money into a home than you can sell it for. If you use the rule of 72 for figuring out how long it will take for your investment to get to $45,000. 14 years.
That is why I refuse to get involved. I can't justify an investment like that. I can't. I wouldn't put my money, my friends money, or my families money into an investment like that. Would you?
Metro Detroit real estate investment information
Investing in Detroit real estate isn't for beginners. Part I
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My Month of December quote:
““The fear of death follows from the fear of life.
A man who lives fully is prepared to die at any time.”
~ Mark Twain”
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
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