Tuesday, March 03, 2009

Buy A House With Cash



You know things are bad in your town when you can buy a house with the amount of cash in your emergency fund.

Check out this Chicago Tribune article:

Chicago Tribune: "Detroit's Outlook Falls w/Home Prices"

Sure, I can make fun of California's revenue plight. But in some ways, their problems pale beside those of Detroit (and Michigan overall).

As the article above notes, Detroit's December median home-selling price was $7,500. Wrap your head around that — or try to. If you're like me, it's tough.

"Median," for you non-technical types, means that half the homes sold for less than $7,500 and half sold for more. That's simply difficult for me to grasp, but reality is what it is. And Detroit's reality is one of vanishing jobs and vanishing population. (If the jobs are leaving, who's gonna stay? Who'll be left to bid up the prices of homes to a level that's not something out of Father Knows Best ... or worse?)

From the story:

On a positive note, Detroit's homicide rate dropped 14 percent last year. That prompted mayoral candidate Stanley Christmas to tell the Detroit News recently, "I don't mean to be sarcastic, but there just isn't anyone left to kill."


Bonus: For all you looky-loos, here's your Realtor.com search for Detroit single-family homes asking $7,500 or less.

But be warned: Buy as many of those homes as you like with cash — hey, it'd certainly follow Dave Ramsey's ideals — but you'd better be proficient in handling small-arms fire. And, as I understand it, weird city housing-code requirements.

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— Posted by Michael @ 8:40 AM








2 Comments:
 

I think my brain just broke.

That's... urban dystopia becoming a ghost town. It's the stuff bleak futuristic novels are written about.

And it's real and present.

Yikes.

 

People get caught up in labels too much, really, but I truly believe this: In some parts of our country, right now, this is a depression. And easily so.

How far does it spread? How deep does it go?

Those are the questions.

** Comments Closed on this Post **

Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


100%

Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]

100%

Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]