US house prices buy a house for $40

JasonLVC

You'll find these houses for $1 will be in the roughest (and blackest) parts of a town - and I don't mean for that to sound racist, but the properties will be in predominantly black and/or gang areas.

You'' also find the properties will have been stripped and wrecked internally - that is you'd need to spend $20k to get it back upto habitable standard.

Would you want to live there?. Probably not, unless you are well into Ikon, Fiddy or comfortable wearing the right colours from your back pocket.

Would you rent it out? Possibly, but the rental will be low due to the area and tenants inability to actually afford rent, let alone a mortgage.

But for a speculator willing to buy cheap, invest some cash and take a gamble, these are very good buys indeed.

baileysbattlebus

JasonLVC wrote: »

You'll find these houses for $1 will be in the roughest (and blackest) parts of a town - and I don't mean for that to sound racist, but the properties will be in predominantly black and/or gang areas.

You'' also find the properties will have been stripped and wrecked internally - that is you'd need to spend $20k to get it back upto habitable standard.

Would you want to live there?. Probably not, unless you are well into Ikon, Fiddy or comfortable wearing the right colours from your back pocket.

Would you rent it out? Possibly, but the rental will be low due to the area and tenants inability to actually afford rent, let alone a mortgage.

But for a speculator willing to buy cheap, invest some cash and take a gamble, these are very good buys indeed.

Often these homes have been repossessed for non payment of taxes, federal, state, property even home owners association fees.

So there will usually be lien or more than one against the property - you can possibly get the house - if the the mortgage lender doesn't bid higher - but you get the taxes to pay too - along with all of the above.

Sometimes it is the tax lien that is being sold - and if the owner doesn't pay you, you get the house.

Sometimes it is HUD (Housing and Urban Development) that is selling the house and normally you have to be a property developer and prove you have the money to be to buy and refurbish it.

Sometimes historic home are sold for $1 - but they have to be dismantled and rebuilt somewhere else.

If it seems to good to be true - it usually is

tomterm8

RDB wrote: »

Can someone tell me these prices are not real?

I just cant believe it

They are real.

However, they are not worth the price. Owning the house makes you liable for them. They are in areas you'd have to be insane to live in, and sooner or latter the local government is going to go after you to demolish the property or fix it up. You also have to pay taxes on them. And if you get tenants in, they are probably on drugs.

lostinrates

JasonLVC wrote: »

You'll find these houses for $1 will be in the roughest (and blackest) parts of a town - .

I was actually wondering what cities/states they were in rather than the areas within those towns. I was wondering why, if the bottom is so dramatically falling out of the market why rents in normal parts of the same cities is still high or if these are ristricted to the historically blighted parts of US.

I slight ,m very slight, bugbear of mine is when we say 'the States' which covers an area of attituide, financial and cultural diverisity that is immense and they say 'Europe' lumping all Eurpean countris together...which is an area of attitude, cultural and finacial diversity!

baileysbattlebus

lostinrates wrote: »

I was actually wondering what cities/states they were in rather than the areas within those towns. I was wondering why, if the bottom is so dramatically falling out of the market why rents in normal parts of the same cities is still high or if these are ristricted to the historically blighted parts of US.

I slight ,m very slight, bugbear of mine is when we say 'the States' which covers an area of attituide, financial and cultural diverisity that is immense and they say 'Europe' lumping all Eurpean countris together...which is an area of attitude, cultural and finacial diversity!

historic homes for a $1 are usually in Norfolk MA

other $1 homes are usually Detroit - though not necessarily, Detroit is crime and gang ridden though not everywhere - high unemployment - They are being given away for a reason.

The HUD $1 homes can be anywhere - they are repossessions and will have been empty for at least 6 months- but usually sold to developers or local government or non profit making organisation who then do them up to rent to local people.

RDB

Sorry but I have to disagree.

If you look again at these houses they are really nice places, some of them anyway.

By the way where did $1 houses come from these are for $100s.

What I dont understand is why would anyone rent anymore if you can buy for just $100`s, I dont care if the place is a mess on the inside you could spend the same amount decorating that you did buying the place.

The big question is will the UK get anywhere near to this?

GDB2222

Some of the properties in that video are actually up for rental, and the price in the advert is the monthly rent. Still, why spoil a good story with facts?

terryw

lostinrates wrote: »

I haven't clicked the link but what areas are these in? B-i-L is looking to move and rents are still high-ish in the cities he is investigating.

re prices in London, surely its fair to compare London to NYC, for example- but thats the trick of correctly identifying comparables, no? Its as pointless comparing London and, lets say....Herefordshire, as London and Nevada desert.

Were there really houses in Newcastle for a £1??? Amazing. What happened to them? Do they stand still or were they replaced?

Yep, mate they are just beside where I live. Revitalised they were selling for £100,000 but like everywhere they have dropped in price quite a bit.

Concurrent with the sale of these houses for £1 (which were fundamentally sound but the area was on its back legs) was an influx of immigrants/asylum seekers so there was increased demand for housing within the area. In fact this is a positive side of immigration as this has really helped to turn a down-at-heel districtinto a vibrant community.

terryw