Diamonds in the Rough - Boston-Edison House Bargains

[Hermod]

No heat bill

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[DetroiterOnTheWestCoast]

No heat bill

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The air conditioning bill, however.....

And in hurricane land.

[Bham1982]

No heat bill

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This is another thing people always ignore in the "Michigan has such cheap real estate" meme. Heating costs for a typical suburban home are over $200 a month. Some drafty, big old place in Boston Edison is probably costing you close to $1,000 a month. Move to [[admittedly expensive) coastal CA and you will never have a heating [[or air conditioning) bill, ever.

Though that pic looks like Florida, and you'll definitely have an AC bill in Florida.

[bailey]

This is another thing people always ignore in the "Michigan has such cheap real estate" meme. Heating costs for a typical suburban home are over $200 a month. Some drafty, big old place in Boston Edison is probably costing you close to $1,000 a month. Move to [[admittedly expensive) coastal CA and you will never have a heating [[or air conditioning) bill, ever.

..and you'll be living in a 2 million dollar, 1960s 3br 2ba ranch in Palo Alto [[according to the recent tale of woe in the Daily from the UM student from there lamenting how her family is just middle class so don't call her rich). so, again not really a comp to this. No one is looking at that house and thinking about the "costs" in that way. They're thinking can the love of the house overcome living in and dealing with the dysfunction of Detroit.

[Bham1982]

..and you'll be living in a 2 million dollar, 1960s 3br 2ba ranch in Palo Alto [[according to the recent tale of woe in the Daily from the UM student from there lamenting how her family is just middle class so don't call her rich). so, again not really a comp to this. No one is looking at that house and thinking about the "costs" in that way. They're thinking can the love of the house overcome living in and dealing with the dysfunction of Detroit.

Agreed, but Palo Alto is essentially the most overpriced town in the most overheated real estate market anywhere [[Silicon Valley).

There are places along the California coast where you can get something decent for under a million, and I do think the savings from no heat/AC costs would be a factor for some. $300-$400 a month in heating bills for half the year adds up over the years, and would matter to non-rich.

[ABetterDetroit]

Agreed, but Palo Alto is essentially the most overpriced town in the most overheated real estate market anywhere [[Silicon Valley).

There are places along the California coast where you can get something decent for under a million, and I do think the savings from no heat/AC costs would be a factor for some. $300-$400 a month in heating bills for half the year adds up over the years, and would matter to non-rich.

This is the perfect example of how Bham will make any insane argument up out of thin air to be negative on this city, metro and state with every post. Let's take his high number $400 a month x 6 months = $2400 a year. Comparing saving $2400 a year and then paying 2-5 times more for the price of a home and attempting to say it's relative is hilarious. California homes cost 100s of thousands of dollars more that Michigan homes. I really like CA. and go often for business and pleasure and when I'm there I always pick up the free real estate books because the prices are so high compared to Michigan it's just exellant entertainment, laugh out loud funny.

[Bham1982]

This is the perfect example of how Bham will make any insane argument up out of thin air to be negative on this city, metro and state with every post.

There is nothing "insane" about pointing out that it costs thousands more annually in utilities living in Michigan compared to other states. That's part of housing costs, and needs to be factored in.

I never claimed that Michigan is more expensive than California, that's you basically ranting before reading. Obviously Michigan is relatively cheap, but there are many factors in housing costs [[utilites, taxes and landscaping) where Michigan can be comparatively expensive.

And the larger point is that utilities are just an expense; the upfront housing costs are an investment, with a probably return. What is "cheaper", a 200k home in Michigan or a 400k home in California? Over the long run, the CA home will probably be cheaper, because it will appreciate at a faster level than the Michigan home. A home is an investment; if you're getting no return, it's a bad investment whether $1 or $100 million.

[mwilbert]

There is nothing "insane" about pointing out that it costs thousands more annually in utilities living in Michigan compared to other states. That's part of housing costs, and needs to be factored in.

I never claimed that Michigan is more expensive than California, that's you basically ranting before reading. Obviously Michigan is relatively cheap, but there are many factors in housing costs [[utilites, taxes and landscaping) where Michigan can be comparatively expensive.

And the larger point is that utilities are just an expense; the upfront housing costs are an investment, with a probably return. What is "cheaper", a 200k home in Michigan or a 400k home in California? Over the long run, the CA home will probably be cheaper, because it will appreciate at a faster level than the Michigan home. A home is an investment; if you're getting no return, it's a bad investment whether $1 or $100 million.

The main return you should expect on an investment in a home is the ability to live in it. Of course you can also make a profit when you sell it, even a large profit, but for most homeowners most or all of the benefit is the housing provided. Of course, people who think they know the future course of home prices in a particular area are welcome to speculate, but it is more speculation than investment, and worse, it is a speculation that is significantly cash-flow negative while you hold it. The data is pretty clear that over a long time frame, housing is an indifferent investment. See, for example http://www.fool.com/investing/genera...t-a-great.aspx

[bailey]

Agreed, but Palo Alto is essentially the most overpriced town in the most overheated real estate market anywhere [[Silicon Valley).

There are places along the California coast where you can get something decent for under a million, and I do think the savings from no heat/AC costs would be a factor for some. $300-$400 a month in heating bills for half the year adds up over the years, and would matter to non-rich.

All well and good... but I'm guessing those looking at the Arden Park house aren't looking to California as a comp anymore than they're looking to sprawly, exurban Novi ... so again, I'm just not getting the point in comparing them.