Detroit Detroit:
Surprised it took this long actually..
Can buy a block there for about 20Gs in some areas..
The reason why those real estate prices are so depressed and the reason why no one wants to buy those properties even at fire sale prices is because the new buyers are on the hook for all of the back taxes.
We had someone on this site from Windsor (an active member whose name I forget) who bought a place in Detroit at auction for some ridiculous price like $1800 and then abandoned it after he found out that the first thing he had to do before he could fix up the place was to pay some $150,000 in back taxes.
Screw that.
peck420 peck420:
Just out of curiosity, what responsibility does the State of Michigan have in all of this?
It is my understanding that municipalities in the US are much more dependent on State funding then in Canada.
States generally receive their revenues from income taxes and state sales taxes. Municipalities generally receive their revenues from property taxes, building permits, and (where applicable) local sales taxes and local income taxes.
The State of Michigan at one time had such a sizable pool of revenue from corporate income taxes that they started sharing it with the cities. In recent years those revenues have declined as industry in Michigan has declined so the state cut those revenues to the cities correspondingly.
Keep in mind that those revenues were supposed to be
extra income and the cities were not supposed to make themselves dependent upon that revenue. Saginaw and Detroit moved those revenues to their general funds and now both cities are hurting because the revenues were reduced.
The cities are victims of their own mismanagement is all.