Turn the Downturn around by investing in Detroit!
The financial downturn in the US has presented a unique opportunity for people to buy repossessed homes at prices 65% below their peak values in 2006. Properties across the US are being snapped up by savvy investors looking for a bargain.
In particular, the buzzword ‘foreclosure’ in the American real estate market is generating substantial interest from international property investors who are looking for a hassle-free investment with guaranteed returns.
Foreclosures are properties that have been repossessed by banks who are usually unwilling to take on the responsibility of managing the properties and paying their relevant taxes. In Q3 of 2010, foreclosures accounted for a quarter of US residential sales (Realty Trac).
This has created a new market whereby specialist agents take on these properties and commit to refurbishing them to levels above national housing averages. They then sell them on to landlords who agree to rent them out to suitable tenants.
One city in the US has drawn the most interest due to its location, sophisticated network of businesses and residential homes and strategic transport and motorway links; Detroit has been a focal point for investors both within the US and internationally.
Formerly known for its legendary Mowtown music and car industry, Detroit is now famous for its cut-price homes. The area has benefited from a huge demand for affordable housing available for rent with unemployment decreasing due to the renaissance in manufacturing in Detroit.
The major appeal to investing in Detroit is the US government backed rental scheme which helps to place tenants eligible for subsidised housing. If a qualifying family earn between $22-35,000 the government will pay for at least 80% of their rent direct to the landlord under ‘Section 8’ of the subsidy program.
Investors can reserve a property in Detroit, Michigan from only £27,273 cash plus £1,500 buying costs. This is a hands free investment as all the properties are managed by experienced local managing agents. The properties are provided fully refurbished and typical net rental yields range from 14-16%.
As Steven Worboys, MD of Experience International who markets these properties comments:
“A lot of prospective investors might not have considered Detroit as a property investment destination before, however the comparatively high net yields are convincing many to seriously consider Detroit as a respectable, reliable and rewarding investment!”
If you are interested in taking advantage of this unique opportunity please contact the experts at Experience International on +44 (0) 207 321 5858 for an overview and further information, or visit www.experience-international.com.