So let’s look at why property in Detroit is an interesting investment today.
Detroit is ranked the 30th Richest City in the world and is forecast to grow in light of the USA Government’s commitment to a new high-speed rail service between Chicago and Detroit.
The car industry in Detroit is now again and, with General Motors recently introducing an extra 2,000 jobs in the city, the rental demand has quickly increased.
As mentioned the price of homes is around 65% below 2006 prices so you can now acquire a brick built detached house for only £20,606* ($34,000) or a larger brick built 3 & 4 bed detached houses for just £24,848*. Taking into consideration that the normal rental yield for these kinds of homes in a good neighbourhood is around £600 ($1000) a month. So you can figure out the good rental yields of as high as 25% per annum.
Some firms like Experience International offer pre-tenanted houses that generate rental income from the first month you own the property. They take care of the whole process offering investors a totally hands off hassle free investment.
The homes are US Department of Housing approved and the rental yield is secure with rental payments backed by the US gov (Section 8). The houses are all Freehold with clean, clear & debt free titles and also come with an optional 5 year home warranty.
Due to the current situation of the USA real estate market, the improvements in employment opportunities and the other points highlighted above you can see that houses in Detroit offer attractive rental yields, with great capital growth potential in the medium to longer term and are therefore still a very good investment right now.