What real estate in the USA should you not invest in?
In America, there is too cheap real estate, but you can buy it only under certain conditions and in disadvantaged cities of the country. They were once super successful and prosperous, but due to the loss of economic importance they turned into ghost towns consisting of abandoned buildings. Local authorities cannot just demolish them all, so they come up with profitable (or not so profitable) programs and promotions for their sale.
1. Urban Homestead Program in Buffalo, New York
This government program sells abandoned properties for one buck, provided that the new owner lives there for at least three years and eliminates all building code violations within 1,5 years. Repair costs can reach up to half a million dollars (depending on your luck), which turns off potential buyers. The Buffalo program began about 40 years ago, but no more than 10 people use it each year. Many cannot cope with the conditions of the program, but some still manage to adapt. They see this program as a long-term investment. I think for some Americans with free money and a lot of time, furnishing an abandoned house may seem like Sims-type entertainment.
2. Valentine's Day Couples Discounts on Empty Lots in Newark, NJ
A few years ago, on February 14th, municipal vacant lots in Newark were sold for $1000 to couples to celebrate the holiday, but houses had to be built from the ground up. The conditions are the same - meet the 1,5 year deadline at any cost. You just have to live there for another 5 years. A real test for two lovers, isn't it? Newark is, without exaggeration, the creepiest city I've ever seen in my life. I wandered in there by accident once and don’t want to go there again. If Batman existed, he would love it there.
3. Public Housing Program in Gary, Indiana
In Gary, it is believed that renovating a “dollar home” can be cheaper than the cost of a regular one. City officials say the spending will cost up to $30K when a typical home in Gary costs $50K on average. Under the terms of the deal, a participant in the program must: earn at least $35 per year, bring the home to “livable standards” within a year, and live there for at least five years.
No matter how interesting and logical these programs may seem in their development, disadvantaged areas will remain the same for a long time. The remaining locals who decide not to leave might just set your house on fire for some Halloween fun. This, for example, happens regularly in Detroit, so there you can find huge vacant lots between houses. This is the other side of America, which few people talk about, but it also needs to be remembered. The outflow of population from ghost towns is becoming less and less every year, but I don’t recommend going there even for tourism purposes, just to see. It's too unsafe, especially in the evening or at night. Take a look around Google Maps and see for yourself.
Author: Anton Nayanzin
