If houses can be had for a few thousand what is the real risk? If you plan to hold it for the long-term you should see some return. I really can't see homes getting any cheaper than that in a major American city.
The thing is, if everyone thinks it's a good idea to buy in Detroit, it's already too late to buy. When everyone thinks the idea is crazy is when you buy. There was a time when downtown Los Angeles was as scary as Detroit. This wasn't even too long ago, I'm talking late 90s, maybe even early 2000s. It was a place you got the hell out of after sundown. Only people down there after dark were crackheads and a small community of artists in lofts.
Now few could even afford to live there. Yuppies and hipsters moved in, rents are in the stratosphere, trendy bars and restaurants opening up all the time and it's the place to be. Buying a loft down there would start at half a mil, maybe more. If someone had said to buy downtown L.A. property in the 90s everyone would've thought you were crazy. But for those that did, they are sitting on a sweet equity cushion. Real Estate is one of those sectors where you always want to do the opposite of what everyone else is doing.
The thing is, if everyone thinks it's a good idea to buy in Detroit, it's already too late to buy. When everyone thinks the idea is crazy is when you buy. There was a time when downtown Los Angeles was as scary as Detroit. This wasn't even too long ago, I'm talking late 90s, maybe even early 2000s. It was a place you got the hell out of after sundown. Only people down there after dark were crackheads and a small community of artists in lofts.
Now few could even afford to live there. Yuppies and hipsters moved in, rents are in the stratosphere, trendy bars and restaurants opening up all the time and it's the place to be. Buying a loft down there would start at half a mil, maybe more. If someone had said to buy downtown L.A. property in the 90s everyone would've thought you were crazy. But for those that did, they are sitting on a sweet equity cushion. Real Estate is one of those sectors where you always want to do the opposite of what everyone else is doing.