I read recently in realestate.com.au about a house in Detroit selling $1.
$1. Bargain right?
The only thing is….all the copper piping would have been be removed.
It would cost $10,000’s to get up to liveable standard.
And, the neighbouring homes would either be vacant or derelict crack dens.
Meanwhile across town in Detroit a similar property might sell for as much $50,000…because it’s near great universities and the big 3 car manufacturers.
This points to a fundamental truth of property investing.
The area you buy in more important than the property you buy.
For example, my grandma lives in a suburb where a little yellow brick home from the 70’s can sell for $1.2 million!
Why? It’s not because people love these houses.
In fact, buyers knock them down and put up new ones.
The reason high income families buy them is location – they want to be close to the city and good schools.
You see, infrastructure and proximity to jobs are two of the biggest price growth drivers.
You just don’t want the ‘wrong’ infrastructure – like this place.
Nuclear powerplants and spiders – what could go wrong???? Have these people never seen a super-hero movie?
The exciting news, is right now there are some suburbs with property prices under $450,000 where there is billions in new infrastructure spending….and thousands of new jobs being created.
The best part? Todd Polke will reveal these potential ‘superstar’ suburbs at his new property wealth masterclass….