Skip to comments.Many Chinese think Detroit housing is a great investment
Posted on 07/28/2013 9:16:43 AM PDT by kevcol
Sina Finance reports that since the bankruptcy on July 18 was announced, the Chinese website Sina Weibo has been all abuzz about how properties can be picked up for a pittance. Caroline Chen, a real estate broker in Troy, Michigan, claims to have received numerous calls from people in China. Chen says that some people have called and said they want to buy 100 to 200 properties. She said that a colleague recently sold 30 properties to a Chinese buyer. The buyer said we don't need to see the properties just pick the good ones.
(Excerpt) Read more at digitaljournal.com ...
Some Chinese investors fly to Detroit without notice and phone Chen from the airport. She recommends that they hire a taxi to drive them through downtown Detroit. She says most of them do not call her back. Once they see the areas where the properties are, they give up.
Meanwhile Americans are prohibited from buying property in Mexico.
Funny how open borders work.
It is all about In-State Tuition @ University of Michigan, plain and simple...
If the Chinese can do some good with those properties, more power to the Chinese.
Hahaha - just pick the good ones!
Chinese view property through the very different lenses of the Chinese property market. While they have poor neighborhoods for sure, they have no concept of random street crime and violence in places like Detroit. They also are utterly clueless about the racial politics of places like Detroit and how crippling that is in American politics and economy.
Finally, they do not know property taxes, which, as of yet, do not exist in china.
2022 is the Year of the Tiger.
I'm perplexed as to how the Chinese "can do some good with these properties." Who will live in them? The Chinese? Or do they expect other outsiders to move into this crime infested illiterate, orrupt city?
If you go on Zillow, you’ll see that the price of nearly every foreclosed home has risen this summer. Still can get nice places, 4B/2B for under $15K. Perhaps the chinese know something - like obama will NEVER let Detroit go under.
While you’re on Zillow change the address to one of the suburbs just north of the city limits. Prices go from $15K to $150K as you cross that invisible line. Fun stuff.
They’ll pay the taxes and if they decide to build a factory, they’ll have land bought at rock bottom prices. As it is, companies are choosing to do more here due to transportation costs and China is no different.
Anyone buying any property in Detroit is a FOOL!
Those houses that are dirt cheap are not worth what one months property taxes are.
You can’t fix em up and resell at a profit..LOL
It’s a huge dead zone...Detroit, the city where zombies fear to tread.
If this is the case, what Detroit needs to do is immediately hire a team of civil servants to promote properties in run down areas, using floor plan drawings instead of actual photos, and give rewards to employees for each property sold.
And then employees can count these bonuses as part of their calculations for retirement benefits, and count every paper cut as a 1% disability.
There has got to be a way to milk every purchase into going entirely into the union employee’s pocket and continue the bankruptcy and eventual bail out of the city.
Because the one solution that will never actually be considered is reducing costs, especially costs generated by promises made by previous government employees and elected officials, groups that have no legal say in any current budget - or would have no say in a sane world.
Its the LAND. When all else fails there is always the land Katie Scarlet.
I have a Chinese friend who apparently saw this Chinese news story and was asking me about buying houses in Detroit. It took me two days to talk her out of it. She kept thinking things will turn around eventually. Its very hard to describe Detroit and the political situation, and the crime, to someone who is not an American.
Anything bought inside the city limits of Detroit will have a clouded title for 30 years.
“The buyer said we don’t need to see the properties just pick the good ones.”
Very trusting these Chinese. I’ve purchased and sold a number of houses in my lifetime and have yet to find a real estate agent I would trust to “pick the good ones”.
It’s the taxes and the fact that they would bleed any new industry dry to pay for welfare and union pensions.
It would be cheaper to buy desert land out west and start a new city.
Well, every property in America, whether in a nice area or in a ghetto, has a market value. The market will determine how much these places in Detroit are worth.
Are these abandoned houses which the city has taken possession of? If so, wouldn’t they be part of city property sold off during the bankruptcy?
Anyway, though none of us want to live there, these places do have some market value. Let investors pay whatever the market price ends up being.
It sounds pretty bad. Most of the sales are sight-unseen, and no way for the buyer to ever visit the property. It’s telling that most of the investors that did manage to get to Detroit, unannounced, walked away as fast as they could after a taxi ride.
” The buyer said we don’t need to see the properties just pick the good ones.”
They better buy homes all in the same area and plan to defend it like a frontier fort!
Actually, the cloud will probably last as long as the city is in bankruptcy but one never knows if hussein might decide to bail the city out by sticking property owners with responsibility for the city’s debts.
Useless land is still useless isn’t? You would have to pay taxes on the land; you couldn’t build anything with terrible cost and no hope of making a profit because the economy in Detroit is dying.
Interesting that the Chinese are interested in buying these properties, though. This is one way we are likely to recover much of the massive U.S. trade deficit with China.
Rush was talking about buying the whole town and naming it Limbaughville.
Finally, they do not know property taxes, which, as of yet, do not exist in china.
They will get charged more property tax on these properties than they are worth - what a dumb investment. Also, the city codes can come along and condemn them so they will have to get them up to code or tear them down. It costs about 10k to tear them down - lead paint and other environmental deficiencies. If they get them up to code there are few good tenants to rent to and thieves will vandalize and scrap the house.
If they tear them down they will still have to pay property taxes on the bare land and hire a service to maintain the property.
These folks are in for a rude awakening!
If the Chinese will renovate and move in, I’d buy property there too and move in with them!
So an anonymous Chinese Investor buys 30 houses @ a song. Detroit comes back as Trade Magnet, and his 30 homes ( hopefully together ) are now a Warehouse Site and sells it for un-kubocko-bucks.
Better yet said Chinese individual is now a natural gas tycoon if they find that the "Atrim" Shale formation is bigger than previously thought and is under Detwaa....
The Chinese will literally own Detroit. They will drive out the blacks and crime. I feel sorry the people in the suburbs because crime will rise and they will decline.
The Chinese are smart.
They are the future. Many people don’t want to face that fact.
Depending on the property taxes, the land could have negative value.
Ho lee fuk, sum ting wong with this investment strategy.
Not I CC...
I have had the privilege of going to summer homes on the lakes owned ( by now deceased ) Big 3 suppliers many who made it in Detroit and left for the burbs. Hard working Poles, Italians etc etc that made stuff, they got their start their and I maybe nuts but it could happen again.
Ya never know the door handle king, or engine bracket mogul could happen again, but maybe with a different industry, that one is to mature at this point.
“...Some Chinese investors fly to Detroit without notice and phone Chen from the airport. She recommends that they hire a taxi to drive them through downtown Detroit. She says most of them do not call her back. Once they see the areas where the properties are, they give up....”
Or they go find a serious, aggressive realtor who is actually willing to work to sell properties.
Imagine if the Chinese were dumb enough to fall for a scheme like that. Buy up property on the cheap, flatten it and build a factory...the first oriental looking guy going to work the first day would be shot...rinse and repeat the 3rd world order.
Are you implying they would prosper in Detroit city?
Wee Buy Lo, pay taxes, pay taxes, pay taxes, pay taxes, pay taxes, Hey! Sum Ting Wong @#$%^ Who all these lazy bums, no workee, me hav to pay their rent and food and everything else #$%^&*
I wouldn’t worry about security. I am sure the Chinese will provide security for their workers.
They will have the votes and money to own the local government. Actually, they will be the government.
Only if the PLA airdropped 30,000 troops in there. Do you seriously think the gubmint of Detroit would let anyone prosper? Why are they in debt to begin with? You need to study the situation better to grasp how communists, socialist and fascists truly operate and as hard as it may be, try to understand how they "think"!
There is quite a pool of knowledge in the Detroit area. It was only a couple of years ago that a new flash hardening process for steel was developed by a Detroit area metallurgist.
The Detroit brothers custom cycle builders had a short lived TV show were they brought in local guys to build things like a corn harvesting combine from a pickup truck. The show was a knock off of monster garage but they concentrated on local knowledge to do the stuff.
I think they would have to buy huge swaths of land, blocks and blocks. Then demolish everything. That would help push the crime out. Knowing the Chinese, they would then reinvent the whole area, taking advantage of Detroit as the continents second largest port city. I hope they do it.
I think I know why they are buying it:
* LNG powered tankers bring Ore and Tar Sands in from the UP and Canada to Detwaa
* A new bridge to facilitate Trade on the 2nd busiest boarder crossing
* Access to I-75 South, a little drive and you are headed to Chicago in I-94
* A huge waterfront, industrial and if the cards are played right may assets like Belle Isle that could be housing and tourist magnets.
* A financially ruined city, holding the whole state back Finally gets services that will make it liveable.
* Some of the best Medicine and Hospitals in the Nation in Michigan, many in Detroit.
I may not be implying anything, but maybe these Chinese Investors are either crazy or naive, or they are crazy like a Fox like those that bought Ford Stock in early 2009 when it was @ in the low single digits per share...
Well, they did build a wall a while back to keep the other guys out... Maybe that's the plan this time too.
It's a tough road but they are metaphorically being brought to the barn to have gender modification surgery performed and will be geldings soon. Look @ all that went to jail from Kawame's Administration, the Council is down in numbers, many are refusing to run again, they will soon be chosen from districts not at large, and Orr and his team are trying to clean up the rest.
Again it is not easy, but they are trying to take the fun out of Dysfunctional, and that is a big step...
>>Its very hard to describe Detroit and the political situation, and the crime, to someone who is not an American.
I can well imagine that to be so, and would suggest that the main reason is an almost complete lack of forthright, honest public discussion and debate on racial issues in society for at least the last 30-40 years.
They catch somewhat of a break in that they aren’t as likely to be accused of “hate crimes” for defending themselves and their properties in Detroit, for what that’s worth.
They will drive people and crime out. Thus, take over the city.
The government of Detroit will be Chinese, so there will be no problem.
By buying up property, they will move their people in. People vote and pay taxes. They will complain about the crime and then bring in others to protect them until they have complete control of the city.
First there was white flight, now there will be black flight, followed by muslin flight, followed by whites moving back in.
It's all gooooood.