As Detroiters get evicted, investors get elated
He’s a New York bus mechanic by day. But his dreams of wealth and opportunity revolve around a city hundreds of miles from his home, a city he has never seen except in pictures. Detroit.
“I believe the riverfront is being redeveloped,” says Joseph Annibale.
Yes, Joe, it is. And it’s lovely.
[via DetNews.com]
Newly minted “real estate professionals” across the country are coming to the conclusion that there is money to be made in Detroit among many undervalued properties. Will they get rich quick? And do they know something most people in Michigan don’t know? Eastern Wayne County is among the worst performing housing markets in the country with many foreclosures in Detroit. I guess this means a lot of homes are going on the market where those homes are currently occupied by families who want to live there but can’t afford their mortgage payments which have increased. Can they be renters? They’ll have to find someplace they can live. I think this is a another sign that the Detroit market is undervalued, due to long-term negative sentiments as well as the current regional economic situation, which should have some lowering effect on prices but who knows how much. They will probably go below their true value before bouncing back up to reach some equilibrium. Those who recognize properties that have intrinsic value such as proximity to certain amenities like the riverfront or downtown, or have value in the materials they are built out of where they have not been stripped, could buy these properties at significantly reduced prices and then get huge returns either from rent or from flipping once a market correction occurs.