And we’re concerned about our housing market!
Now that Quotable Value is telling us the New Zealand house prices are finally falling (down 2.2% on a year earlier in July), the reality has sunk in that this might be a long adjustment.
However, the downturn in the US housing market has been happening a lot longer, and shows no sign of abating. Especially with some houses now selling for $499US! (ht Stackelberg Follower)
Interesting, without knowing anything about the areas etc, surely the capital value of the housing on those properties (even if gutted by fire) would be worth more than $500.
Does anyone know the costs associated with the properties (i.e. rates etc) that would prevent a speculator buying up large in the area. Obviously its a shitty area (Detroit, down the road from Eminem’s famous 8 Mile Road) but even then, surely it would jusify the $500 outlay…
Phil Jones will be after that one.
I really don’t know what the hell is going on on seymour street – but the area appears to be in trouble.
http://www.trulia.com/property/1063821526-15252-Seymour-St-Detroit-MI-48205
http://detroit.craigslist.org/rfs/768493476.html
I’d suggest talking to a estate agent in the area to get details – my feeling is that there must be a ridiculous over-supply of property in the area, which has combined with a significant number of job losses in the area (high oil prices have hammered Detroit industry).
My guess would be that people don’t expect capital gains in the area, and rental yields might be negative (given the community).
However, it is cheap, maybe you should buy a few properties their Mike 😉
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