Why You Should Invest in Detroit Property

Foreign buyers are acquiring Detroit investment property at a unprecedented rate. Let’s examine at why.

Presently, the prices on homes in Detroit are still a lot lower than they are in most other American markets. The cost of rent, however, has not fallen at such an astounding rate. That fact is intriguing news for investors. Detroit investment properties can be purchased at prices that start as low as $37,995 according to many websites and property agents. However, there have been quite a few media reports about homes in Detroit selling for even less than that figure.

Once an investor has acquiried a rental property, they just to find a tenant which some real estate agents can help with like the experts at Experience International for example who can help as they offer pre-tenanteed investment properties.

With the average rent in Detroit about $800 a month, investors are able to cover the mortgage payments and make profit on top. In fact rental incomes are up to 25% in most cases. That figure is true even when the foreign investors have to pay a management fee to take care of their properties. Many overseas investors get these Detroit property investment deals because they are ready to make fast decisions. Some overseas investors are even acquiring whole blocks of Detroit real estate. These investors hail from the UK, Australia, China and some other countries.

Also the majority of house renters in Detroit are currently subsidized by the U.S. government. There is a list of over 9,000 tenants who are approved for section 8 housing. That means that they are waiting for a property with a government voucher for the cost of rent in their pockets. So many investors utilising this HUD scheme won’t have to worry about the rent not being paid.

Detroit real estate offers investors a chance to get homes in Detroit with the chance to earn up to a 250% ROI over five years. The homes are normally sold for a price that includes many refurbishments and a year’s liability insurance in the cost. Even deals that don’t include those things are still appealing to foreign buyers as the ROI is so high. A lot of Detroit investment property is completely paid for within five years by rent payments alone and then the posibility of capital growth is also good as property prices are at rock bottom at the moment therefore it is simple to see why Detroit real estate is so attractive to foreign investors.

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