These tax incentives include a waiver of city income and utility users taxes, most city property taxes, county property taxes, and state income tax or single business tax. The program applies to participants who live, own property, or businesses conducting business within the area and are not delinquent in any local, county, or state taxes.

Since this program involves the exemption of tax and applies to businesses and residents alike, it is crucial for participants to apply and qualify, through the Renaissance Zone Processing Center, for these tax benefits.

Once qualified, the resident, business, or property owner will enjoy the exemption throughout the duration of the program without reapplying. However, if the resident, business, or property owner changes his/her status in any way, they must notify the Renaissance Zone Processing Center.

The sixteen sub-zones and their expiration dates in the City of Detroit are:

For a

Take this for example

Wallace, 27, said he did not want to leave his fiancee and two children with a mortgage before shipping out to Iraq later this year.

“I still have student loans and I’m trying to be responsible. I don’t want to leave debt,” he said.

Wallace waited for the auction to roll around to Detroit’s Boston-Edison district, a once stately area that was home to boxing legend Joe Louis and Motown founder Berry Gordy.

But he was quickly outbid. An unidentified investor at the front of the room who had scooped up several dozen properties took the home Wallace wanted for about $15,000.

“Why am I competing against a bank?” he said later. “It would be common sense to have a separate process for people who want to move back to the city or it’s going to stay empty.”

As an investor, note

1. there are people who want to live in the city
2. you can’t just buy and hold and SIT in the real estate market in Detroit, You have to buy with a plan. Otherwise, you don’t have an investment, you have a liability.

Read the rest of the article here.

Hazel Park, Eastpointe and Pontiac all had higher rates than Detroit, according to a Free Press analysis of metro area foreclosures over the past 3 1/2 years.

Read the rest of the story in the Detroit Free Press

Some of the generic things they say had a strain of truth (Detroit has seen more unemployment than the rest of the country) but then they start throwing in assumptions that are stupid, simplistic half-truths (the area’s unemployment is due to layoff’s from one company, Ford–yea right) to weird phrases a Detroiter would not recognize (the 30th Street area, a couple of miles from City Center–this area is NOT called “City Center” and their is no “30th Street area”).

Basically, know your source.

I Will Stay If…

Heritage properties suffered from a bum rap in the past. People have been reluctant to purchase a piece of the past due primarily to expense of dragging it into the present. Lately, however, these older properties have been recognized for their historical value and  beauty and have even become a hot commodity. Yes, there is often work to be done on historical properties, but you actually have some financial incentives for restoring these properties to their former glory.

First, restorations create jobs. Second, the finished product is culturally significant, making it a draw for tourism and improving the quality of a neighborhood over all.

Third, there are tax credits involved on a local and federal level.

Historic districts in the city of Detroit that are viable for real estate investing–because they or going through a resurgence : Boston-Edison, Virginia Park, Brush St. (Wayne State University district), Indian Village, and Palmer Park.

At the federal level, you can apply for a Federal Rehabilitation Tax Credit of up to 20 per cent of a restoration. If your property has not been certified, you can apply to have it certified or take advantage of the 10 percent credit for non-historic, non-residential buildings put in service before 1936. These credits have been used to revitalize buildings that were seriously dilapidated. They can be applied to all kinds of work on the building including, “architectural and engineering fees, site survey fees, legal expenses, development fees, and other construction-related costs”.

At the state level, tax credits are offered through the Michigan State Historic Tax Credit. The State-only tax incentives are targeted at those resources that by virtue of their designation, end use, or the limited nature of the rehabilitation investment do not qualify for the federal credits. To be eligible for State-only credits a project must meet one of the following criteria:

• The resource is located in a locally designated historic district.
• The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is in a unit of government with a population of less than 5,000 people.
• The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is located in a chartered summer resort and assembly association.
• The resource is listed individually, or is part of a historic district listed in the State Register of Historic Sites or the National Register of Historic Places and is subject to a historic preservation easement.

State-only credits are non-competitive and non-caped and are equal to 25% of the projects qualified expenditures.

Some historic districts in the city of Detroit that are viable or are undergoing a renaissance include: Boston-Edison, Virginia Park, Brush St. (Wayne State University district), Indian Village, and Palmer Park.

Top 5 Foreclosure Markets in the US

Sherwood Forest has been a proud part of Detroit’s heritage since 1917.  The neighborhood is known for its architecturally distinctive homes, its quiet, winding streets, its convenient city location and its talented and friendly residents.  Most of the approximately 435 homes were built in the 1920’s and 1930’s.

The good news is that Sherwood Forest residents are eligible for a 25% tax credit for rehabilitation expenses when they follow the guidelines. That’s a tax CREDIT, not a tax deduction—meaning that, for example, $40,000 in eligible work means a $10,000 rebate!

Eligible expenses include both exterior and interior projects (even kitchens and bathrooms), and must amount to at least 10% of the home’s SEV. (SEV means “State Equalized Value,” which is roughly 50% of the home’s true market value—thus, for example, on a $200,000 house the SEV should be $100,000 and the eligible work would have to equal at least $10,000.) Work must be approved by the State Historic Preservation Office.

You can find out much more about the program here:
http://www.michigan.gov/documents/hal/mhc_shpo_09_Brochure_272401_7.pdf