Detroit ranks No.1 US Housing Market in 2010
Known as the “Renaissance City” the regeneration of Detroit is unequivocally underway with the latest Housing Predictor forecasts ranking the city number 1 housing market in the US with 21.5% growth forecast for 2010.
There remains a shortage of some 30,000 rental homes in the Metro Detroit area and savvy buy-to-let investors are purchasing refurbished family homes in the most sought after locations at prices as little as £32,000, up to 40% below market value.
Steven Worboys, MD of Experience International which is marketing properties in Detroit, comments:
“Since launching this unique investment opportunity in 2009 response has been overwhelming with over 250 units purchased and clients are already benefitting from rental income and yields of 21% per annum.”
US Auto Industry Back on Track
The US automobile industry, which plays a key role in the ‘Motor City’ of Detroit’s economic recovery, is also very much back on track with Ford Motor Co. posting a $2.1 billion profit for Q1 2010, continuing the run of four straight quarterly profits since 2005.
In a recent address US President Barack Obama remarked on the turnaround of the motor industry saying “the industry is recovering at a pace few thought possible”. In addition to Ford, Chrysler has announced an operating profit for Q1 2010 and it is reported that General Motors has created over 45,000 jobs with an additional 1,200 expected to be saved this year by the construction of a new vehicle in a factory just north of Detroit.
Employment Prospects Strong for Detroit
Detroit is very much a working city generating demand for affordable accommodation and prospects for future employment look strong as private and government investment flows in. The proposed construction of the $5.3 billion Detroit River International Crossing project which will connect Detroit to Windsor, Ontario on the Canadian side is forecast to create 10,000 construction jobs and more than 221,000 jobs in Michigan.
If you are considering investing in Detroit and capitalising on the demand for rental accommodation then 3 bedroom family homes are available from as little as £32,000 including buying costs and a complete refurbishment by The Home Depot, with ongoing tenant management and the first 2 years of maintenance costs paid making this a truly hands free property investment.
As Steven Worboys concludes:
“When purchasing in Detroit it is essential to select the right properties in the right locations. We work with expert local partners based on the ground in Detroit who are able to identify for our clients the premium roads and suburbs in which to buy and can gain access to the most desirable properties as soon as they become available.”
For more information on the properties available or a detailed Detroit Investment Report please contact Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.com.