My neighbors and I here in the Detroit area are still in shock that the Pontiac Silverdome arena could be worth less than our homes. In fact, I have a neighbor who spent more than $583,000 on his garage and landscaping a few years ago (it’s a nice garage, pretty bushes too).
Could it be that real estate is so out of favor for a building that contains over $10 million in steel and receives $250,000 a year in rental income for the highway signage could be worth only $583,000 – or has the world lost its marbles?
I’m going with marbles. Those who have cash, are certainly king in 2009. I have read several newsletters lately that predict both a further fall and an immediate rebound in real estate values. Who is correct? Both I believe.
There will continue to be deals in the near term, and those deals will be ’steals’ as seen thru the long-term lens of history. We will look back on the 4th quarter of 2009 as a ‘wish I had bought’ moment that many of us will tell our grandkids about. They will kick our wheel chairs for not acting in their best interest by being bidders at the next ’silverdome-like’ auction.
So what can you do about it? We have been working with several banks to help move some toxic assets. Interested in Michigan real estate?