It’s a Victorian mansion that’s the most expensive house in this city and is for sale at $1.2M. What a deal! That’s about the same amount it would take to move into a high-end, one bedroom apartment in Manhattan and is perhaps 35% of what a similar house would cost in Greenwich, CT, Kenilworth, IL, or Mercer Island, WA.
There’s one very big problem…the mansion is located in Detroit.
Since 1950, Detroit’s population has declined 50%. With <700k citizens, many of whom are poor and with many large industrial corporations having already fled the city, it’s unlikely Detroit will once again have a sufficient tax base, at least, in this lifetime. Today, the situation is so dire that the government of the bankrupt city can’t provide emergency services to the entire city and some parts don’t have working street lights.
In addition, scores of houses located in the city’s boundaries are being auctioned off for as little as $1k by Building Detroit. Even though many of those houses will be bulldozed into the ground and this will eliminate a lot of urban blight, it’s unlikely anyone would be willing to plunk down $1.2M for a mansion located in these environs.
If someone is interested in a Detroit mansion, now is the time to wait for a while. The price on this gem may eventually drop to $500k…or perhaps even less. Buy low with both eyes very wide open—as this house will not sell high…in this lifetime.
Let the discussion begin…
To read the 24/7 Wall Street article, click on the following link: