Real estate is too cheap in America, but buy it It is possible only under certain conditions and in disadvantaged cities of the country. Once they were super successful and prosperous, but due to the loss of economic importance, they turned into ghost towns consisting of abandoned houses. Local authorities cannot simply demolish everything, so they come up with profitable (or not so) programs and promotions for their sale. Read today in USA.ONE magazine:
What real estate in the US you should not invest in
And why.
Urban Homestead Program in Buffalo, NY 
This government program sells abandoned properties for one dollar on the condition that the new owner lives there for at least three years and fixes all building code violations within 1.5 years. Renovation costs can reach up to half a million dollars (if you're lucky), which repels potential buyers.
This program was launched by the city about 40 years ago to stimulate the restoration and development of certain areas of the city, but no more than 10 people use it each year.
The one dollar price is just the starting price. The owners will be required to repair and rehabilitate the houses within a certain period of time, and this may require significant financial costs.
In addition, the homes that are sold under this program are usually in a derelict and undeveloped state, which can lead to additional costs for their restoration and repair. Many do not cope with the conditions of the program, and some still manage to adapt. They see it as an investment in the long run. Apparently, for some Americans with free money and a lot of time, decorating an abandoned house is a kind of Sims entertainment.
Valentine's Day Couples Discounts on Empty Lots in Newark, NJ 
A few years ago, on February 14th, Newark's municipal vacant lots began being sold for $1,000 to couples in celebration of the holiday. The program is called "Nеwark's Land Bank Residential Infill Program" and was launched to stimulate the restoration and development of certain areas of the city.
However, it should be noted that the price of $1000 is only the starting price. Owners will be required to repair and rehabilitate their homes within a certain period of time (usually a year and a half) and this may involve significant financial outlays. In addition, homes sold under this program are usually in a derelict and undeveloped state, which can result in additional costs for their restoration and repair.
You will have to live in the house for another 5 years on top. A real test for two lovers, isn't it? If you are interested in buying property in Newark, you may want to consider this program as an option, but be sure to check all terms and conditions before making a final decision. It is also important to pay attention to the state of the area itself and assess its potential for future development and the possibility of reselling real estate in the future.
Public Housing Program in Gary, Indiana 
In the city Gary, Indiana, has a $1 Abandoned Homes Sale Program. It was launched by the city authorities in order to attract new residents and stimulate the restoration of some areas of the city.
However, it should be noted that the price of one dollar is only the starting price. Owners will be required to repair and rehabilitate their homes within a certain period of time, and this may involve significant financial outlays. In addition, homes sold under this program are usually in a derelict and undeveloped state, which can result in additional costs for their restoration and repair.
It is believed that it is in Gary that the repair of a “house for a dollar” can be cheaper than the cost of a regular one. City officials say it will cost up to $30K to spend, compared to an average home in Gary that costs $50K. A participant in the program under the terms of the deal must: earn at least $ 35,250 a year, bring the house to «livable standards» within a year, live there for at least five years.
Dollar Home Program in Baltimore 
"Dollar Home Program" in Baltimore is a one-dollar abandoned home sale program launched by the City to encourage regeneration and development in certain areas of the city.
As part of the program, the City of Baltimore sells abandoned homes in certain areas for $1 one dollar, provided that the buyer undertakes to repair and restore the house within a certain period of time (usually 12-18 months).
Home buyers must be U.S. citizens or permanent residents of the age of majority, and must pay property taxes and assume all costs associated with restoring and repairing the home. Once the home has been fully restored, the buyer is required to use it for their own personal residence for a minimum of 3 years.
The process of buying a home under the program includes pre-selection and application. After the application is approved, the buyer will be required to conclude a contract with the city authorities, which will spell out the terms of the program and the timing of the restoration of the house.
However, it is important to understand that buying a house under the "Dollar Home Program" may require significant financial costs for repair and restoration, and also requires a careful assessment of the area and the potential for resale in the future. Therefore, before making a final decision, it is recommended to carefully study all the conditions of the program and carefully evaluate the opportunities and risks.
Cons of "cheap" US real estate 
US dollar house sale programs can be attractive to those looking for affordable real estate. However, there are some downsides to consider:
The condition of the house. Homes selling for $1 often need major repairs and upgrades. Restoring a home can be a significant investment of time and money.
Location. Dollar houses tend to be in areas with high crime rates, low employment rates, and/or dilapidated infrastructure. Therefore, the buyer needs to carefully study the area and understand what he is going for.
Restrictions on use. Dollar house programs often provide restrictions on the use of the home. For example, the buyer may be required to use the house for their personal residence for a certain period of time, which may be inconvenient for those who plan to use the property for rent or resale.
taxes and other expenses. In addition to the purchase price, the buyer will have to pay property taxes, insurance and other costs associated with owning the property.
Competition. Such programs usually attract many buyers, so there can be high competition for homes, which can make the buying process difficult.
As interesting and logical as these programs may seem in their development, disadvantaged areas will remain the same for a long time to come. The remaining locals who choose not to leave may simply set fire to your house for Halloween fun. So, for example, it regularly happens in Detroit, so there are huge wastelands between the houses.
This is the other side of America, which few people talk about, but you also need to remember about it. The outflow of population from ghost towns is getting smaller every year, but it’s not worth going there even for tourist purposes, purely to see. Too unsafe, especially in the evening or at night.
What do you think of these programs? Would you risk buying a house for a dollar?
