So why are investors heading to Detroit to find good yielding property investments?
Well here are 3 recent news items which highlight encouraging signs that right now property in Detroit is an attractive investment opportunity.
Detroit was in the top 10 affordable US markets.
This is encouraging as it shows a leading property agent is actively interested in Detroit and that home buyers can purchase a nice house for good value.
Wed 23rd Sep, Coldwell Banker, press release
Detroit Update: Finally Some Good News?
Among other factors including good business performance it was stated that General Motors plans to expand production at three of its manufacturing facilities and for the nearly 2,400 workers that will be invited to work on the third-shift line, the news is the best they have heard in a while.
offshoreinn.com, 23rd Sep
Residential property prices have troughed in US, many economists believe.
The article stated that residential property prices in the US are nearing the end of a three-year slump and should rise in 2010.
Propertywire.com, 24th Sep
According to overseas investment property experts Experience International Detroit is an ideal property investment. With there partners in Detroit, Experience International offer a packaged investment to guide investors through the whole process of finding and refurbishment a suitable property to helping find tenants via the US Government backed HUD programme.
At the moment property in Detroit can be acquired at very low prices, with rental yields at over 20%. Along with the high rental demand, Government backed rental income and full, professional management then it is easy to see why Detroit real estate is an attractive investment opportunity.
Here are 3 investment scenarios outlined by Experience International.
Lease to own - Buy a property (40% below market vale). Tenants on a ‘lease to own’ scheme will be placed. Then you hold for up to 5 years and resell to the tenants on a pre-agreed price (normally higher than the current appraisal or market value).
Long term hold - Buy a property and enjoy yields of over 20% for as long as you wish to own the property. This strategy provides a long-term significant income and massive potential for capital growth. It will pay back the initial purchase price in less than 7 years from the rental income alone.
Short term re-finance, long term hold - Subject to availability. Re-Finance your portfolio and generate capital, tax free & re-invest in other Detroit properties. Net rental income more than covers the mortgage payment. Note: this is only available after one year of rental history can be shown and is for up to 65% of the appraised value.
Experience International further state that this is an ethical investment opportunity that
‘recycles’ houses, turning foreclosed (repossessed) and uninhabitable houses in the USA into refurbished, clean, safe homes for employed – low income families. This provides a much required service to a region struggling with a shortage of 30,000 rental homes.’
So as you can see Detroit property is certainly worth close consideration and could be an excellent additional to every investors portfolio.
For additional information and to download the exclusive investor report then visit http:///www.detroit-property.co.uk
