Would you move to Detroit if the city gave you a free house?

[jobeterob]

Detroit is offering money for people o take up abandoned houses in the city. [[Image: roshsillars.com)

Would you move to Detroit if the city gave you a free house?

17/02/2011 9:00:00 PM

by Greg & Daniela
The struggling city of Detroit is attempting to lure homeowners through financial incentives, including free houses and even payment for occupying abandoned homes. He Said/She Said weighs in.


He Said: Daniela, it's sad to say, but if you were looking to choose a U.S. city that's been hit hard by the foreclosure crisis, you could look in almost every state in the union. But one of the hardest hit, surely, is one right on the Canadian border: Detroit.

Although it's no longer ranked highest for either foreclosures or general misery, times are tough in Motown. So tough, in fact, that Mayor Dave Bing is trying to attract potential homeowners by offering massive incentives: $150,000 in renovation money and just $1,000 down payment for police officers willing to relocate, for example.

Many of the homes in question show just how far Detroit has fallen: in most cases, these aren't trailers and shacks we're talking about, but decent homes including grand Victorian mansions.

In that sense, it's staggering to think that they could now just be sitting there, free [[or virtually so) to anyone willing to take them on.

But in another sense, it's understandable: financial incentives have always been offered to lure people [[and businesses) into areas looking for a shot in the arm. Trying to lure a factory? Offer a tax holiday. A sports franchise? Tell the ownership group that you'll build them a stadium on the taxpayer's dime. And so on.

So in some ways, the Mayor's move is nothing new; it's only the scale of the incentive that's a bit shocking.

It also might be a dangerous game in the long run: if the new owners can't afford the property taxes - or even the upkeep - the houses could quickly end up abandoned again.

Daniela, I just finished an excellent book about the financial meltdown called The Big Short by Michael Lewis. In the book, he notes that a big contributor to the crisis was the fact that banks were giving sweetheart mortgages to people who, in actuality, couldn't afford to own homes [[especially once, a few years into the mortgage, the banks suddenly jacked their rates to levels they could no longer manage).

Back in 2008, an Australian economist named Janet Albrechtsen argued that the key lesson we all needed to take from the foreclosure crisis was the acceptance that not every American could, in fact, afford a home, or, in her own stronger language, that "[[the) American Dream of home ownership for all is a fraud."

Daniela, what do you think of this argument? While Mayor Bing is just trying to solve his city's desperate times with desperate measures, is it possible that he's just perpetuating a cycle that America as a whole should be trying to stop?

Do you think we in Canada have the same problem? Would you entertain the idea of taking advantage of the offer of a free house, by moving down to Detroit?





She Said: Greg, I love how diplomatic you are. This is totally insane. America is diseased. It's sick from the inside out and in denial about it. How desperate do you have to be to offer up $150,000 and a free house for people to re-populate and re-energize your city?

As with so many "solutions" to massive problems like a derelict city, this is simply a band aid. If you give people that renovation money and the house what will they do in Detroit? Are they able to get a job? Will they suddenly jump start the economy and turn blighted neighbourhoods into welcoming communities? We're talking about a city with 50% of its population on public assistance. Detroit can't even afford to bury its dead -- the city has turned to cremation as a cheaper option. This is in response to extreme budget cuts.

Does that sound like a nice city to set up a new life in? Not likely. Unfortunately Mayor Bing's initiative is extremely short sighted. While I applaud him for making some bold announcements and getting his city some publicity, I'm not sure this is the best way to boost Detroit.

I tend to agree with your economist Janet Albrechtsen; not only is the the American dream of home ownership for all a fraud, the entire dream is a fraud. When did the American Dream turn into the right to have a mortgage and own a home? The US has definitely started a cycle that is built on that dangerous notion of home ownership for all. I'm positive that anyone who takes Detroit up on its offer will need to pay the city's astronomical property taxes and also find some way to survive after they've renovated their gorgeous Victorian.

I wouldn't relocate to Detroit even if their incentives included a yacht, and another $100,000 with a cherry on top. It's just a sad, desperate place to be right now. I don't think that offering incentives are necessarily perpetuating the idea that every American needs to own a home, I actually just think Bing's move here is simply a last-ditch effort to revive his city. Simple as that.

Canada definitely doesn't have the same problems as the U.S. and I don't think we perpetuate the same "dreams." For one, our cities never experienced the kind of collapse we're seeing in the U.S. [[although I do worry about Windsor, ON), and secondly, I think most Canadians can do simple math and generally wouldn't take on a mortgage that is way over their heads. That, and I just can't see the mayor of Toronto, Rob Ford, handing out $150,000 to anyone for any reason -- even if it meant reviving a worn down part of town.

I do think though that Detroit's mayor is not as creative as he could be. Mr. Bing, if you're listening, you're better offer creating a television program whereby you offer large monetary incentives but also a shot at becoming America's next reality TV star. Think Survivor: Detroit or the tear jerking Extreme Home Makeover: Detroit Edition.

You'll have people lining up to move in.

[gordy_hunk]

A free house?

Yes, I'd relocate there if I was given a free house - providing I had employment [[and the necessary visa).

I know I'd have to undergo lots of re-training, for example, I'd have to learn how to shoot and be prepared to shoot someone, as I'm not firearms trained.

But a free house? Yep, Detroit may not be the world's safest city to live in, but with me patrolling the streets, at least I'd be helping to make it one of the world's most enjoyable cities to visit.

Now, how do we apply....

[DwightTurner]

How do I sign up? I'd move back to Detroit for a free house! Hell yeah I'd come up there right now! How do I apply?

[rod_rick]

Employment is the key for Detroit> A free house means nothing if you can't pay your bills

[arrr&bee]

I'd move into[hooch rehab]if they throw in a free house....perhaps i should give that more thought..get back to ya!!

[captainjames]

no...................................Hell No

[soulster]

No friggin' way! Detroit has nothing going for it.

[jillfoster]

I wouldn't go there in a million years. But if 50 percent of the population is on public assistance, then wouldn't a free house help those people out alot? They wouldn't have to pay rent anymore... just come up with the taxes every year [[who knows how much that is)

[jobeterob]

Here are the results so far:




Question of the Day

Would you move to Detroit for a free home?

I'd move anywhere for a free house 5%

Yes, that's an amazing offer 5%

Maybe, if I get a guaranteed job too 16%

No, thanks 74%

10411 responses, not scientifically valid, results updated every minute.

Would you move to Detroit if the city gave you a free house?

[arrr&bee]

here are the results so far:




Question of the day

would you move to detroit for a free home?

I'd move anywhere for a free house 5%

yes, that's an amazing offer 5%

maybe, if i get a guaranteed job too 16%

no, thanks 74%

10411 responses, not scientifically valid, results updated every minute.

Would you move to detroit if the city gave you a free house?

let me get back to you 1%,hehehehehe!!

[copley]

Sorry no

[tomato tom]

Do these, albeit dodgy statistics mean, that few believe in the future of one of the U.S. former Powerhouse cities? Would you rather live in Crapsville, Ohio. Samelookingtown,Nevada, etc etc......So Sad...Detroit has some of the grandest, oldest, most stunning architecture in the WHOLE of the U.S. and it is being systematically torched,demolished or left for dead. What is WRONG with trying to preserve the past. YES, the economic, recession etc has hit Detroit badly AGAIN. But to see such a Grand old lady slide into such a sad, sad coma is beyond belief. Once these beutiful grand old jewels have gone, Detroit can forget about getting tourism dollars from the many, many european visitors who came to see The MOTOWN MUSEUM only, and would have liked to have seen a lot more of what the Motor City can. and SHOULD offer. I know Detroiters a fiesty bunch, and I do wish them all the very best in getting the city back on its feet...Paulo xxxx

[arrr&bee]

do these, albeit dodgy statistics mean, that few believe in the future of one of the u.s. Former powerhouse cities? Would you rather live in crapsville, ohio. Samelookingtown,nevada, etc etc......so sad...detroit has some of the grandest, oldest, most stunning architecture in the whole of the u.s. And it is being systematically torched,demolished or left for dead. What is wrong with trying to preserve the past. Yes, the economic, recession etc has hit detroit badly again. But to see such a grand old lady slide into such a sad, sad coma is beyond belief. Once these beutiful grand old jewels have gone, detroit can forget about getting tourism dollars from the many, many european visitors who came to see the motown museum only, and would have liked to have seen a lot more of what the motor city can. And should offer. I know detroiters a fiesty bunch, and i do wish them all the very best in getting the city back on its feet...paulo xxxx

hey watch it,i've been to[crapsville,ohio]it was the best twenty seconds of my life.

[smark21]

I'm sure this is an attempt to attract young aspiring artists and aspiring tech entrepreneurres into the city to lay the groundwork to transform the Detroit economy. Whether it will work or not, who knows?

[tomato tom]

arr&bee.............Couldnt you stand it a LITTLE bit longer?