Author Topic: How low does a low price have to be? (US - Housing)  (Read 562 times)

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Offline MWDabbs

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The cheapest sale ? a home on Payson Street in Southwest Baltimore ? changed hands between real estate investors for just $10 in February. An attorney drafting the land record, realizing the number would look like a mistake, wrote that the amount "is the actual consideration, the property being in bad condition." The annual ground rent on the property is nearly eight times the purchase price.

A low-low price isn't always a good deal. The seller of the Payson Street home bought it for $353 a few years ago.

Things have to be in pretty bad shape for the house and the surrounding area.  Numerous homes in foreclosure for under $10k.  Area has a LOT to do with it - but I don't ever recall it getting THAT bad any time previously - and unfortunately, many of these areas are still getting worse. 

My biggest concern for most of these areas would not be the purchase price but what the city/country/state assesses the property's value at for purposes property tax. 

Following this, and especially for cities like Baltimore (Detroit, etc.) - the next issue is the criminal element.  In some respects, if someone had the balls to do so, working with the criminal element could actually be a means of "cleaning up a neighborhood" or section of a city.  It worked for Las Vegas until the Feds moved in.  And in some areas of these cities, there are areas where the police/emergency services practically refuse to go. 

And what does this have to do with "democracy" category per se?  I think it resides in the "And Beyond" part...the trends are pretty clear.  I would almost be willing to bet that the next "New Issues" for banks in the United States will involve confrontations with gangs who have "assumed ownership" of properties outside the new and usual operational areas of US law enforcement.  It's already in progress.

We cannot afford governments that cannot afford to take care of our veterans.