28/05/14Detroit buy to let?
Here’s a house & there’s a door..with windows, 1,2,3..well you get my drift!
So now, I’ll tell you this house is listed for…$16,000!
Welcome to Detroit, Blog viewers. According to various websites, a ‘Section 8′ tenancy, will yield around $1,000 per month and a fixed 1yr tenancy comes with it & we Brits are buying up streets.
Various reading material states that that buyers snapped up properties for $12,000 a couple of years ago, had 2 years’ of rent which more than covered the purchase price, then sold them for around $20,000 this year.
Clearly, the yields & profit are hard to resist and I can clearly see why, people would want to invest in this way..but not to the detriment of everything else.
Further reading, see’s individuals moving their cash-en masse-to buying property, again, from the view of interest rates I can see why someone would want to shift away from a cash account, but not to where everything has gone from being in one place, to another..the adage of ‘Eggs in one basket’ has clearly been forgotten about in this instance, however, this isn’t the only time we’ve seen this.
From leveraging our own homes to buy flats to let out, selling our gold jewellery & investing in Unregulated Investments, some of us are always looking for the ‘next thing’
Sometimes, we do well & other times……..We don’t. Recent articles citing football players & other high profile celebrities have been many fold, along with those individuals caught up in ‘Boiler room’ scams, letters claiming to be from lost relatives, bogus lottery wins..the list is endless..
Shaquille O’Neal, an NBA legend, recently disclosed that he spent his first $1m in 30 minutes. After a scolding from his bank manager, he enrolled back into education & has earned his doctorate. His statement ended by him saying “It is not about how much money I make. The question is, am I educated enough to KEEP it.”
Now that, says it all. Imagine ‘Financial Services’ was a compulsory subject from age 14. Our kids would find out about the actual cost of using a Credit Card or store card when you do not pay off the balance. How Payday loans work. We could educate about property, mortgages, loans, investments, pensions & the current welfare system,Venture Capital, Enterprise investment..the list is endless. It could see an end to our thirst for the next thing & and acceptance that having a bit of everything..in moderation..is ok.
So if buying a property in Detroit, Dieppe or Dartford is your thing, remember that even if the sun is boiling hot ..the sea can still be cold, so go in gently & always seek advice.
Have a great Bank Holiday weekend