Detroit, Michigan USA- City of Delusion?
Detroit has attracted investors like vultures to a rotting carcass. Prices there have dropped significantly over the past year which have been exaserpated by the recession felt worldwide. Unemployment is at 14%, the highest rate in the entire USA. Population has seen a marked decline over the past 2 years, and shows no apparent signs of a recovery. Crime, especially car theft is rife in the City, and many of the inner City streets are run down warzones reminiscent of a scene out of terminator! Why on god's green earth are investors from all over the world flocking to buy property there?
DPI have uncovered the FACTS on where to invest, at the right price ensuring a professional realty team are at hand to navigate this tricky market to find the true gems that are very much present there. Yields can exceed 50% and returns can be £250-£400 per month NET, all managed expertly by teams that have been in the Detroit area all their lives and have the knowledge to make the above figues realistically work.
We have visited Detroit recently to meet our newly formed team of realty experts, and between them they have over 70 years knowledge and experience of this housing market. Similar to Buffalo, DPI Ltd have formed a winning team to ensure that investments are safe, solid, produce the highest yields for the lowest prices possible. Buffalo is a walk in the park compared to Detroit, yet there are many pockets of this Michigan City that offer brick built properties in good condition in areas that you thought good enough to live there yourself! Leafy suburbs that are clean, with minimal crime and proud people who uphold a decent living through hard work and pride.
Properties Viewed on our trip there......... PRICED FROM $15,000+ IN GOOD CONDITION AND BRICK BUILT (BELOW), IN AN EXCELLENT INVESTMENT POCKET IN SUBURBAN DETROIT.
Property prices are at an all time low, you can pick up a single family property for as little as $1,500! BUT...........DPI Ltd will source properties in the range of $15-$25k for the following reasons:
1) Properties listed at $1000-$9000 will require MORE work to get them rent ready, or as the americans say, 'rehabbed'.This will entail the probability of spending more that what you have bought for and certainly more than you have budgeted for! So, steer clear of properties priced this low at all costs, even though they APPEAR very lucrative.
2) Properties for UNDER $9k are likely to be in the run down areas of the City, for sure.
3) Void periods will be very high in these areas, and the chances of a good management team wanting to take this sort of property on... is zero!
Clients who feel brave enough to go it alone investing in this City face many trapdoors, moneypits, unscrupulous realtors and risk losing everything. You may think that buying a property at $1500 means that its so cheap that you can afford to lose this money, but we guarantee that once you close on one of these deals, the expenditure can escalate to huge proportions!
We are targeting bank owned properties, or foreclosures as they are commonly known and private portfolio owners who wish to free up some collateral. All properties will be secured for a fixed price, a full SURVEY ( Home Inspection) will take place as well as a drive by Appraisal to gauge the current market value, and this will ALWAYS be higher than the price secured. Our properties will be 'handpicked' in decent areas, inspected personally by one of our licensed team, photographed and assessed to provide us with the information necessary to make an INFORMED decision on whether to submit an offer or not. If the properties are vacant, our team will begin the screening process as soon as the property is secured to DPI Ltd, and have a 95% success rate of housing tenants AT closing, and 100% record of housing tenants within 2 weeks post closure. They are fully conversant with foreign national owners and provide expert guidance in association with Dollar Property Investment Ltd, from reservation through to closure and into management, AND BEYOND, for the cheapest sourcing and supervision fees to be found this side of the Atlantic. This is total PEACE OF MIND that you will buy a property that ensures an excellent monthly return and an unbeatable long term investment. To date (Jan 2010) we have sold over 15 proeprties in Detroit and the NET returns averaged £300! with tenants who on average have resided for 3 years!
We are compiling a brand new prospectus report for each property which will incorporate everything the savvy investor needs to win in the state of Michigan.
But hang on! What are the actual pro's having already mentioned a dubious list of cons!
1) President Obama has a definite 'soft spot' for Detroit, and keeps a keen eye on this City for more than just the the situation of the Detroit three- GM Motors, Chrysler and Ford. He visits as often as he can and has a good rapport with the Detroit economic club.
2) GM were saved from the brink of bankruptcy and now look forward to re building their business with new a new 'go green' policy. President Obama is behind this so the chances of success are high and the success of GM as history has shown has a huge economic impact on the City.
3) $8500 of tax credits will be given to new home buyers in the states to stimulate the housing markets, and this will be both popular and beneficial and will allow investors to have the option of either flipping or selling on after a couple of years ownership with a modest capital gain, which form the obvious 'exit'strategy.
4) RENT in Detroit is higher than Western New York, the average rent on a single famlly property with 3 bedrooms is $700-$800 per month!
5) MANY properties are 'BRICK BUILT' and so will require LESS maintenance going forwards.
6) Housing Starts and building permits rose a combined 17.2% in June 2009.
7) As our properties will be in the higher price band remit ($15k-$25k) there will NOT be a lot of work required to make these rent ready, it will be $2k MAXIMUM, and often less than that.
8) Leading economist Mr Nourel Rouben states that the local micro economy will imporve and prices will see a significant rise here by 2014. This gives the benefit of five years of high NET returns only matched by Buffalo and Rochester NY.
9) Michigan was, in 2006, the country's FIFTH largest exporter, and the manufactured exports were more than $37 Million in 2005, and increase of over 14% on the previous two years. A 1000 companies from more than 20 countries have, or have had operations in Michigan State employing over 250,000 americans.
10) The US economy will EXPAND faster than previously forecast ( stated in July 2009- source Bloomberg News) in the second half of 2009 and into 2010 as a revival in consumer spending signals the death of the recession. Growth will average 1.5% from July to December 2009. Signs of stability in the housing markets, improving consumer confidence and smaller declines in auto sales are reinforcing forecasts for gains in consumer purchases.
11) The NAR (National Association of Reators) chief economist Lawrence Yun recently remarked upon Detroit.......
"THERE WILL BE A REBOUND BOUNCE IN AREAS WHERE PRICES DROPPED RIDICULOUSLY LOW. DETROIT IMMEDIATELY SPRINGS TO MIND. THE MEDIAN PRICE OF A HOME IN DETROIT (the actual City) STANDS AT $6000 AS OF TODAY. AS LONG AS ONE BUYS IN A DECENT AREA OF THE CITY, THAT PRICE COULD EASILY DOUBLE, TRIPLE AND EVEN QUADRUPLE ONCE EMPLOYMENT IMPROVES. A HOUSE COSTING $24,000 IS STILL QUITE A BARGAIN GIVEN THAT IT WOULD COST $80,000 TO BUILD A NEW ONE"
As mentioned we have already successfully sold over 20 properties in this City.This is the safest way to invest, through a reputable company built on integrity, trust and knowledge based facts that ensure first class monthly returns, PROFESSIONAL management and long term investment potential that can only be matched in Western New York.