In America, real estate is too cheap, but buying it possible only under certain conditions and in disadvantaged cities of the country. They were once super successful and prosperous, but due to the loss of economic importance, they turned into ghost towns consisting of abandoned houses. Local authorities cannot just demolish everything, so they come up with profitable (or not so profitable) programs and promotions to sell them. Read today in USA.ONE magazine:
What real estate in the USA should not be invested in
And why.
Urban Homestead Program in Buffalo, New York 
photo: ca.times
This government program sells abandoned properties for one dollar, provided that the new owner lives there for at least three years and corrects all building code violations within 1.5 years. Renovation costs can reach up to half a million dollars (depending on your luck), which discourages potential buyers.
This program was launched by the city about 40 years ago to encourage the restoration and development of certain areas of the city, but no more than 10 people use it annually.
The one dollar price is just the starting price. Owners will be required to repair and restore homes over a period of time, and this may require significant financial outlay.
Additionally, homes sold through this program are typically in a derelict and undeveloped condition, which may lead to additional costs for their restoration and repair. Many cannot cope with the conditions of the program, but some still manage to adapt. They see it as an investment for the long term. Apparently, for some Americans with free money and plenty of time, decorating an abandoned house is a Sims-type entertainment.
Couples Valentine's Day Discounts on Empty Lots in Newark, NJ 
photo: realtor.com
A few years ago, on February 14th, municipal vacant lots in Newark began being sold for $1,000 to couples to celebrate the holiday. The program is called "Nеwark's Land Bank Residential Infill Program" and was launched with the aim of stimulating the restoration and development of certain areas of the city.
However, it should be noted that the $1000 price is only the starting price. Owners will be required to carry out repairs and restoration of their homes over a period of time (usually a year and a half) and this may require significant financial outlay. Additionally, homes sold through this program are typically in a derelict and undeveloped condition, which can result in additional costs to restore and repair them.
You will have to live in the house for another 5 years. A real test for two lovers, isn't it? If you are interested in purchasing real estate in Newark, you may consider this program as an option, but be sure to review all terms and conditions before making your final decision. It is also important to look at the condition of the area itself and evaluate its potential for future development and resale opportunities in the future.
Gary, Indiana Public Housing Program 
photo: nyt.com
The city of Gary, Indiana has a program to sell abandoned houses for one dollar. It was launched by the city to attract new residents and stimulate the revitalization of certain 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 carry out repairs and restoration of their homes over a period of time, and this may require significant financial outlay. Additionally, homes sold through this program are typically in a derelict and undeveloped condition, which may result in additional costs to restore and renovate them.
It is believed that it is in Gary that repairing a “dollar house” can be cheaper than the cost of a regular one. City officials say the spending will cost up to $30K when a typical home in Gary costs $50K on average. Under the terms of the deal, a participant in the program must: earn at least $35,250 per year, bring the home to “livable standards” within a year, and live there for at least five years.
Dollar Home Program in Baltimore 
photo: planetizen.com
"Dollar Home Program" in Baltimore is a one-dollar program for the sale of abandoned houses launched by the city to stimulate the revitalization and development of certain areas of the city.
Under the program, the city of Baltimore sells abandoned houses in certain areas for a price of one dollar, provided that the buyer agrees to repair and restore the house within a certain period of time (usually 12-18 months).
Home purchasers must be U.S. citizens or permanent residents of legal age and must pay property taxes and assume any costs associated with rehabilitating and repairing the home. Once the home is fully restored, the buyer must use the home for his or her personal residence for a minimum of 3 years.
The program's home purchasing process includes a pre-qualification and application process. After approval of the application, the buyer will be required to enter into a contract with the city authorities, which will spell out the terms of the program and the time frame for restoring the house.
However, it is important to understand that buying a home through the "Dollar Home Program" may require significant financial outlay to repair and restore, and also requires a careful assessment of the area and future resale potential. 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.
Disadvantages of "cheap" real estate in the USA 
photo: turner.com
US dollar home sales programs can be attractive to those looking for affordable properties. However, there are some disadvantages to consider:
The condition of the house. Homes selling for $1 are often in need of extensive repairs and updates. Restoring a home can require a significant investment of time and money.
Location. Dollar homes 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 getting into.
Use restrictions. Dollar home sales programs often provide restrictions on the use of the home. For example, the buyer may be required to use the home for his personal residence for a certain period of time, which may be inconvenient for those who plan to use the property for rental or resale.
Taxes and other expenses. In addition to the purchase price, the buyer will have to pay property taxes, insurance and other expenses associated with owning real estate.
Competition. Such programs usually attract many buyers, so there can be a lot of competition for homes, which can complicate the buying process.
As interesting and logical as these programs seem to be in their development, disadvantaged areas will remain the same for a long time. The remaining locals who decide not to leave might just set your house on fire for some Halloween fun. This, for example, happens regularly in Detroit, so there you can find huge vacant lots between 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 becoming less and less every year, but it’s not worth going there even for tourism purposes, just to see. It's too unsafe, especially in the evening or at night.
What do you think about these programs? Would you risk buying a house for a dollar?
