Detroit, the largest city in Michigan State, has risen as an attractive investment opportunity for the clever investor. Undeniably affected by the US economic crisis, the large supply of below market value Detroit property as well as the high demand for affordable housing in the Metro Detroit area provides investors with low entry, high yielding investment property in premium locations. Job Surge Creating Demand for
Detroit Homes.
Detroit is one of the most suited cities in the world to invest in and take advantage of the increase in manufacturing that needs to happen as the West balances world trade.
- Factories in Detroit are expanding production and hiring new staff
- In the state of Michigan, 6000 additional jobs are being created every month.
- 5% of all American manufacturing jobs this year have been in Detroit (highest of any city in the US)
- New GM Volt being manufactured in Detroit. Investors from all over the world are capitalising on houses with discounts of 65% below the 2006 values. Detached starter houses in sought after areas near the city can be purchased for as little 22,727 ($37,500) and are available pre-tenanted bringing in NET rental yields up to 17% each year. Specialist Detroit property companies like Experience International can provide a complete hands-off investment solution.
- The homes are pre-tenanted and fully managed. 5 year comprehensive warranty with all houses. The net yields are up to 17% after maintenance, property tax and management fees Option to rent the home on the Government backed Section 8 rental scheme
Section 8
The Section 8 program has a one strike policy. Unlike the UK and other parts of Europe where unruly tenants just seem to get re-housed; this does not happen in the USA under Section 8. Tenants that are evicted from a Section 8 home lose future rights to join a Section 8 program anywhere else in America, for life - thereby making your investment more secure. That also applies for any other occupants in the property above the age of 18, which ensures that Tenants do not ill-use the property and treat it like their own home. This rule has resulted in an extremely low percentage of evictions and better quality tenants. How Your Rent is paid with the Section 8 Programme
The Government, through the Section 8 programme pays the Tenants percentage of the rent, which is normally 80% to 100%, directly to the property owners Management Company; any extra rent collected from the Tenant will also be paid into the home owners account.
Tenant Demand
At the moment the Detroit Housing Associations are aiming to provide as many Section 8 homes as possible. The Detroit Metro area has 9176 families on the waiting list waiting for homes. Experience International is offering pre-tenanted Detroit property from as low as 37,500 dollars which make yields of around 17% NET per year. For additional information about this investment in
Detroit foreclosed homes visit
Detroit-Property.co.uk to request the investor report.
