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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Don Green who wrote (24082)	9/23/2004 3:23:44 PM
From: TH	Read Replies (1) \| Respond to of 306849

Don, Its a very good and valid question. From a profit perspective, I would think that you are correct, and that some investment would make sense. The trouble is, all those available investment dollars are chasing much better margins (and demand) in the burbs. Dearborn is a good example to examine. Dearborn is right on the Detroit border. There is an East part that has the highest middle eastern population in the USA. That is now a community, and maybe someone will keep investing there, as there is solid demand. The Western part has always seen development and many new condos and communities have popped over the past ten years. But a five minute drive North and you are at the edge of the old Detroit projects (now torn down and just a huge field), and zero dollars flow into this area. I'm sure the City would give you tax breaks to 2020 to build on the old projects and probably give you the land for pennies. Where do you get the paying tenants? Why is it this way? Because no one wants to live there. Certainly no one currently living in the burbs. And the people that are already there cannot afford an increase in their cost of living. So new construction is very limited. I do not fill up my car at Warren and Southfield. Just no reason to take such a risk, and this is five minutes from Ford in Dearborn. My coworker was mugged in the middle of the day back when Chrysler was in Highland Park. You cannot argue with a crackhead. I've tried and it does not work. The money is in the lakes, the woods, and all the places not Detroit. Good Trading TH