Tuesday, April 24, 2012

Fools, money ...

The FT describes the sorry outcomes for European investors who bought homes in Detroit.

Perhaps the underlying problem is best signaled indirectly by this bit from the article:
Three years ago, property investment firms were enthusiastically promoting schemes to buy repossessed homes in the US cities of Detroit, Atlanta and Florida – with prospective net yields as high as 16 per cent.
Just in case you weren't aware of it, Florida is a state, not a city.

Due diligence, anyone?

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