Real estate agents selling Detroit property have reaped unexpected benefits over the North American city’s recent bankruptcy saga.
Legal arguments are currently raging over whether the troubled Michigan city is able to file for bankruptcy, which is part of a complex plan to ease its financial problems, however worldwide publicity over the city bankruptcy row has led to a boost in inquiries about cut-price property from overseas bargain hunters.
Detroit-based realtor, Albert Hakim, from ReMax Signature, has already hit the global news headlines for selling homes at just US$1. Now, he says that inquiries from foreign buyers have been flooding in since Detroit applied for bankruptcy over its debts of US$18 billion.
He told the OPP Connect website: “Since the bankruptcy was announced last week I have gotten more than two thousand five hundred inquiries from buyers and they are mostly from overseas. They are coming from Turkey, Asia, Dubai, Australia and more. The bankruptcy has made business increase.We have gotten close to five hundred new buyers in the last three days and will be liquidating most of the inventory."
Many realtors believe that property prices in the city are unlikely to be affected by its bankruptcy application and that the crisis.
Tim McGary, owner of Prestige Realty and Investments in Farmington Hills, a suburb to the north west, said: “If you want to talk about good, decent properties, there’s limited inventory in the city,” he told the city’s Free Press newspaper.
Daniel Stern, partner at Lormax Stern Development, of West Bloomfield, to the north, said: "The bankruptcy, for us, is old news. We hit our low four years ago, and we’re in a very, very steep incline now."
Hakim usually gets up to 500 leads per week from foreigners all across the world, mostly from China, Singapore and Asia. He currently still has listings at just US$1, including 4700 Saint Clair St, Detroit. It is in the Wood-Mcleland/S Mack area and consists of two units each with two bedrooms and one bathroom.
Another bargain-buy Detroit home, (pictured) a three-bedroom brick colonial-style property at 8234 Normile, is listed at US$39.
Some market commentators believe that the renovation costs and risk involved in buying US$1 properties make them unsustainable, but Hakim argues the distressed Detroit properties are priced so low that they are well worth investors considering.
This story was first published by OPP Connect and is reproduced as part of an editorial partnership between PropertyGuru Group and OPP Connect.
Parking or a home; price is the same