House Bargain Hunting in the US?

Squeakaholic March 14, 2009 0

I came across an interesting article today on the Daily Telegraph (Saturday March 14 2009 pg. 4) titled “Buying up a US home for $1.50”. With this current financial crisis in the US, I’m not surprised houses are selling for as little as $1.50. Here’s the extract of the article:

BARGAIN-HUNTING Australians are raiding the US housing market where huge family homes are for sale for just $1.50.

Foreign buyers are travelling to US foreclosure hotspots where properties are listed for $US1000 ($1500), $US500 ($750) – even as little as $US1.

One prominent dealer in Detroit – a town crippled by the collapsing car industry – has sold properties to Australian buyers for just $US3000 ($4500). Vacuum cleaner manufacturer Theo Szinger, 67, of Brisbane, cashed in his superannuation and plunged it into Detroit property last year. He has not looked back, snapping up six properties for as little as $5000.

“You ca’t even buy a secondhand car for that,” Mr Sziner said. His latest buy, a $16,000 home in such good condition it did not even need a paint job, came with a $10,000 rates bill but he was still thrilled with the deal.

Mr Szinger is among the enterprising Aussies who have swopped on the ailing US home market where homes worth $200,000 18 months ago are going for a few thousand dollars.

“We’ve had a handful. Typically, they have been paying $US3000 to $US5000,” Detroit foreclosure specialist Mike Shannon said. Mr Shannon said he had more than 100 lower quality homes listed in the Detroit metropolitan area for sale at just $US1.

But before you plunge into buying a property in the US, make sure you talk to you lawyer and accountant to ensure you’ve looked at all the laws and regulations with owning properties overseas.

Does anyone know what are the ongoing costs associated with these bargain houses?

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