Who Needs a Mortgage When There are Free Homes?

by Ryan

You could say that real estate has quite literally hit rock bottom in some areas of the country, since you can find free land, and possibly homes in some areas of the country, for free! If you’ve ever dreamed of moving out the rural Midwest and breadbasket of America you can find some great opportunities for real estate investments that won’t require a down payment. There are some places that still offer free land or have markets that are so depressed that you can pick up property for what you’ve got in your piggy bank.

If you Like Peace and Quiet…

From what I’ve seen places like Kansas and North Dakota have free land opportunities that encourage new residents to move and to prevent their towns from a decreasing tax base.

According to the website for Kansas:

Our goal is to help our rural areas sustain and grow economically.

Basically they want your tax dollars! This reminds me a lot (and may also be) of the tax increment financing offered by municipalities to encourage business redevelopment in blighted areas, which then increases the tax base by the real estate developments.

Location, Location, Location

If rural living isn’t your take I’m sure that you could find plenty of inner city dilapidated homes that you could purchase for less than a few thousand dollars and put a bit of elbow grease into. However, your neighbors might be squatters.

Jump on Realtor.com and search for your community or communities around you based on lowest price first and you may get some awesome results such as these:

Free Homes

According to the Realtor of the second property for $1,000 you can get a gorgeously decorated condo. Makes me wonder what their interpretation of gorgeously decorated really is.

Free Homes That You Could Win

Free home giveaways have been something that charities will do when coupled with builders to raise funds. Several have been given away in Wisconsin over the past few years, but with economy down I’m not sure if it’s such a popular idea.

Doing a quick search for “Free Home Giveaway” yielded results from St. Jude’s and HGTV’s Home Giveaway, which you could enter.

However, if you are lucky enough to win a giveaway house, you might want to consider the taxes that you’ll be responsible for based on your winnings. Considering that real estate isn’t exactly liquid like water, the winnings might not be so grand after all.

Do you know of anywhere else that’s offering free homes or rock bottom price homes?

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{ 7 comments… read them below or add one }

Investing Newbie February 10, 2011 at 9:12 am

I’ve wanted to purchase property previously, but I am too afraid of the potential liens on the household as well as tax liability. Furthermore, houses in these areas will take decades before you see any return on that investment because the entire neighborhood (or possibly town) is depressed. I’m not interested in being a flipper, but I would like some return on my money, in the form of renting out the property or something to that effect.
Investing Newbie´s last blog post ..The Stars Were Aligned

Ally February 10, 2011 at 12:34 pm

A house located just a few blocks from my parents sold on eBay for $3,500. It had $1,500 worth of delinquent taxes that had to be paid but I think $5,000 for a house worth $50,000 is a good investment. If I had $5,000 laying around, I would have bought it. You can get some great deals on eBay but remember to check to see how much taxes are owed and make sure there are no liens on the title. Also, if a house (or condo) is going for auction, realtor.com will list the house for $1 or $1,000 because that will be the starting bid of the auction.

Andy Bailey February 10, 2011 at 1:47 pm

hiya mate, can you come and reply to the comments on your guest post at comluv.com? you have 17 responses so far!
Andy Bailey´s last blog post ..6 Reasons Why Every College Student Should Blog

Little House February 12, 2011 at 2:13 pm

I know that Detriot is another area where you can scoop up a house for very little. My only concern about such inexpensive properties (well, actually there are a lot of concerns like tax liens and dilapidation) is that the neighborhood may not be very safe. I like the idea of free land, however. Even if that means it’s out in the middle of nowhere.
Little House´s last blog post ..Creating More Income for a Balanced Budget

Financial Samurai February 16, 2011 at 1:41 am

What if you get shot though outside your free home?! Might be worth the risk.

Back in Hawaii commenting here Ryan. You should come back!
Financial Samurai´s last blog post ..A Happy Wife Is A Happy Life

Barry H February 18, 2011 at 3:48 am

I am amazed that you can get land for that little. I can see why it would be a thing that would be on the cards if you needed tax dollars that badly though – especially if you have a lot of land. I wish I could head to the mid-west, get a free piece of land and build a house – but I don’t think that would count as a good reason for a greencard.
Barry H´s last blog post ..Getting Out Of Credit Card Debt

Tanja Wanderlust February 23, 2011 at 5:55 pm

Hi Ryan
Thanks for that information. I found a way to live for free in a house. Im working for my landlady who allows me to stay for free. Now this might not be the best solution for everybody and certainly not forever, But maybe somebody finds this a good advice for now. Ask people with grown up kids that have moved out. Or pensionists. They cannot do all the work anymore themselves, and are happy if a younger person takes care of it.
The best part of all: when you move out you might still have a stable job because they just cannot live without you anymore :)

As for the countrysite house.. its quite popular where i live and those countryside houses or appartments are just as expensive as the city spots.. All countries are different I guess :)
Tanja Wanderlust´s last blog post ..I WANT TO KNOW!

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