No, and no reduction would get me to move there. I wouldn't be happy there, and happiness has no price. I've lived in a low-down suburb before, and I hated it, and was glad I could move out. Now I would gladly pay $100.000 more to stay out of such a neighborhood.

It depends. I don't need the pools and tennis courts and fancy amenities that ere planned- and I value peace and quiet and open space. I wouldn't want the knocked down signs and broken streetlights, however.

If it was possible to buy some of the surrounding lots to ensure a buffer of land around the house, I might consider it -- probably at a 50% discount to the price of similar homes in established subdivisions.

Yes. I would _love_ to buy a home in a "zombie" subdivision.

However, I would be careful about where I bought the house. I would try to make sure that the area was not at risk of a significant crime rate increase and that generally, the area had the basic amenities that I required (grocery store, internet access, etc).

My goal would be to form a co-op. Quite simply, I would try to recruit current and prospective home owners into buying the development land outright. For a fraction of the origional (and future) price, each home owner would own a piece of land much larger than the one segmented for their personal property.

What happens with that land when things turn around would be decided on by the co-op. If / when folks start building houses again... great, we have land for you to buy and build on. If we want to finish the pool and tennis courts mentioned in that video... no problem! In the short term, the co-op could hire an inexpensive landscape maintenance company to cut the grass, fix the street signs, and resize the neighbourhood with attractive shrubs, trees, etc. Budgeted and split between 13 residents, this wouldn't involve a ton of money and a smart bank (or the local government) would likely want to help.

There are power in numbers and when people are organized toward a common goal, a lot of great things can happen.

It really depends on if I'm buying the house to live in, or if I'm buying the house as an investment.

I'd be nervous in the first category. After all its not just me, its the safety and happiness of my family that I am gambling with.

If on the other hand its an investment... then i'd consider it on the basis of the investment opportunity.If I thought that it would pay back in a reasonable time frame. Especially if I think the housing market picks up in that area.