Detroit -- Your thoughts.

[clb07]

If you have cash you can pretty much be a land baron in Detroit.

With the impending bankruptcy of all American auto manufacturers the pickings will only get better.

The question is this: Is it worth it to travel to Detroit and bid on super low land prices?

Will the Motor City ever bounce back?

[FindCRE]

I've actually thought about purchasing a condo downtown, but not sure if its worth it.

[Eric Blackwell]

If you could find a tenant to cover the costs, (and would pay), it would be hard to pass up. There's an awful lot of upside there...provided the local economy actually generates some jobs.

It is an interesting thought!

Eric

[coastal]

I'm originally from Ann Arbor Michigan which is about 45 minutes west of Detroit. Even when the economy was good Detroit was a war zone.

Add a couple thousand dollars to the purchase price of any home in Detroit for steel bars, a security system, two German shepherds, an AK47, 18" shotgun and a couple of 45's with hollow points & don't leave home without your vest and a couple cans of CS teargas.

Other areas of Michigan are very nice but stay away from Detroit if you value your life!!!

[TheRealOBX]

IMO If the auto workers get bailed out don't buy. If they fail and prices fall lower than buy. If they don't get bailed out someone new will buy their assets at basement prices and start making profitable cars. That would lead to Detroit coming back. If not I would stay far away

[VRI]

No expert here but what other industrial city, in recent history, has come back after a big bust? I grew up near Rochester N.Y. (Kodak, Xerox, Rochester Products, Gleason Manufacturing, etc.) and when the industry left, so did everything else.

Haven't been there in years so I don't really know but checking home values it appears they're still depressed. Looking at some of the surrounding areas though it looks like home values have actually increased.

It'd be nice to have someone's take on it who's a lot closer to the area though or has seen similar in other cities.

[coastal]

All of Michigan is low priced at the moment and most of it is beautiful, just stay out of the 10 mile circumference directly around the city of Detroit.

I remember seeing the movie "Escape from New York" when I was younger and thinking it looked about the same as most of Detroit.

[coastal]

All of Michigan is low priced at the moment and most of it is beautiful, just stay out of the 10 mile circumference directly around the city of Detroit.

I remember seeing the movie "Escape from New York" when I was younger and thinking it looked about the same as most of Detroit.

[jamesww]

Pittsburgh has made a major resurgance since it all but crumbled. Rochester is finally regaining footing and may follow suit.

I think that as long as you can purchase the property cheap enough and you wait until GM goes chapter 11 you will make out well in the long term. When I say long term I am talking 10+ years.

Chapter 11 would be a good thing for GM as a company. Just cutting the pension and medical benefits for retirees would make GM $2000 a car more competitive.

In conclusion the only way I would buy in Detroit is if I could take a short term loss and had the ability to hold the asset for 10+ years. If one is in this position they will do very well.

[TheRealOBX]

James,

I agree completely. It could be a good long term play, if they were allowed to Chapter 11, if not then I see it floundering forever. It would be a great thing to see happen.