Revisiting Detroit: What is the TRUE situation?-Opinion Needed

[Ndy Onyido]

I know you will all say…..’not again!’. I know a lot have been written about Detroit; either on this site or elsewhere…I have read all the posts……..its went through the largest bankruptcy in the recent history; it’s a war zone, population is shrinking, it’s a single product economy-auto…Nothing else works there; it’s a ghetto etc…

While I agree with the gurus and RE wiz kids out there regarding above, I have a question? Is it really the situation now? Are things really stagnant in Detroit?

I read that it’s out of bankruptcy now and the city manager has handed over the city to the elected leaders?

Are we really reading the situation right? I know we all work by numbers, but will thing remain same forever?

I read from the papers that the Asians, specifically, China, are buying up the entire Detroit virtually for cents!

I know that these are savvy investors, is there something that we are all missing here?

Read these:

http://endoftheamericandream.com/archives/why-are-the-chinese-gobbling-up-real-estate-and-businesses-in-detroit

http://www.nbcnews.com/news/china/chinese-investors-snap-property-bankrupt-detroit-n253186

Few years down the line, we will all say, had I known, I would have invested in Detroit?

Is it really time to buy Detroit properties? How much time is required to wait out the recession?

Give me your candid opinions.

Thanks

Ndy

[Joel Owens]

What is being talked about has nothing to do with Detroit.

There are areas all across America that are CHEAP and DEPRESSED. They also tend to be rougher areas with a lot of risk and crime.

The difference with 2008 and 2009 is there was a freeze period on values and a massive foreclosure wave. So you could pick up great properties in great areas and wait for the area to pick back up. These were already quality areas the growth just stopped.

The cheap properties being talked about TODAY in these type areas are rough.

If you have 50k and are buying 2 to 3 properties in the these areas you are rolling the dice and could lose it ALL. If you are someone sitting on 1 million and you are throwing 5% of your worth at it and you lose it's not usually all that bad.

If 50,000 is all you have and you gamble to cash in big or be broke if it goes bad I think that Is not a smart decision.

I know investors that buy this type of stuff but it just will never, ever be for me. I don't have to buy it and I don't want to buy it.

I find the best quality stuff that has upside in the great areas and go for that. If people have limited funds then they have to start somewhere and buy the junker properties, partner with someone else to pool cash for something nicer, or wait until they have more funds to go on their own for quality.   

People just need to be clear going in what the risks are. It seems like the mentality from many is "The area is bad but it is turning around or I hope it is does so how could I lose for buying stuff this cheap??"