Demand for homes in Detroit is high among property investors

The property investment market is ‘motoring’ in Motown following a pledge by President Barack Obama to provide massive financial support for the regeneration of the State of Michigan’s biggest city, Detroit.

A growing number of UK investors, disenchanted by the performance of the ailing stock market, are putting their money into buy-to-let bricks and mortar, snapping up distressed properties in Detroit.

“They are attracted by discounts as high as 70 per cent and net yields of up to 17 per cent,” according to Mike Coyle of international property investment specialist High Yield Bricks which is handling the sales.

Detroit, which has attracted more than half a million high tech workers, has suffered from a shift in urban sprawl to the suburbs. The resulting housing crash has left Motown, the heart of its motor industry area, short of affordable housing.

Investors are snapping-up newly-refurbished homes like these currently on offer in Detroit

Now, inspired by President Obama’s promise of billions of dollars to invest in industries which will create thousands of new jobs, property investors are cashing-in through ethical investment whereby foreclosed and uninhabitable properties are being converted into homes.

“With more than 9,000 low-income working families already on the waiting list, demand is high,” reports Mike. “Investors can be assured by the way Detroit’s city authorities are managing the newly-refurbished homes through their Housing and Urban Development scheme. It includes extensive checks on the financial security of would-be tenants and the underwriting of rental payments so that investors do not have to collect money from individual tenants.”

The prices of properties available depend on size and location. Typically a three-bedroom detached home with a monthly rental income in excess of US$850 can be purchased through High Yield Bricks for as little as US$32,000.

Purchases can be completed and annual capital growth is expected to average five per cent over the next five years.

For more details download a free investment guide at www.highyieldbricks.com

With net yields up to 8.91% per annum, Milan Condominiums in Orlando fits the bill perfectly

According to the National Association of Realtors (NAR) Florida is the epicentre for international real estate transactions in the United States and accounted for almost one third of the nation’s foreign investment in 2011. Depressed house prices, a glut of ‘foreclosures’ and a weak dollar are the driving forces for this phenomenon and experts believe the trend will strengthen even further in 2012.

Adam Cornwell, who heads up Florida-based Feltrim International’s UK office, explains, “The US property market now offers real value to foreigners, especially in those states hardest hit by the financial crisis. Investors looking to cash in on bank- or fund-owned homes have contributed to a 13% increase in residential sales in Florida year-on-year to October 2011 and also make up a significant proportion of our enquiries at Feltrim International. We do advise caution however, and recommend a long-term outlook with professional tenants providing strong rental incomes.”

A huge pool of tenants

Milan Condominiums is set in the town of Apopka, 40 minutes drive from both Orlando International Airport and Walt Disney World – the most visited recreational resort on the planet. A former victim of the economic crisis, the project is now being marketed to investors as a safe and profitable proposition.

Adam explains, “Construction was completed back in 2007, just before the economic crash, and having only made a handful of sales the developer went bankrupt. Remaining apartments were foreclosed by the bank but subsequently snapped up by a fund that has since finished them to an even higher standard.

“Apartments are now for sale to investors at a massive 60% below the 2007 prices with tenants and a management company already in place. Current net yields are up to 8.91% per annum, more than you’ll get in any bank account. The risk is low as many former Florida homeowners have simply walked away from their negative equity situations and are now renting until their credit record is wiped clean in three years time when they will buy again. This, and population growth, gives us a huge pool of tenants.”

Since 2005, the population of Florida has been growing consistently by 300,000 to 400,000 each year – that’s 1,000 new residents a day.

In fact Florida has a housing shortage. Latest unemployment figures show an upturn in job prospects and, with historically low mortgage rates, many people are looking to purchase. However, with properties discounted 50 to 70% from 2007 prices, new construction projects are unviable and the existing stock is being absorbed rapidly.

It’s easy to see where the rental demand comes from. And, with high demand comes high rental prices – they have either stayed the same or increased so property investors can buy at half price but rent at full price.

A gated community, Milan Condominiums comprises one, two and three-bedroom apartments with fully fitted kitchens, high speed internet, walk-in wardrobes and private patios or rooftop solariums. The community benefits from a resident clubhouse, fitness centre, children’s crèche/playroom, a large outdoor swimming pool and Jacuzzi set in landscaped gardens and on-site property management.

Prices start from just $69,100 USD (approx £44,334 GBP) for a one bedroom apartment, 60% off peak 2007 prices. Apartments are 98% let with professional tenants in place Property management costs are covered for the first two years including cleaning, repainting and minor repairs between tenants.

For further information, visit www.feltriminternational.com.

New York's discount scheme to the Big Apple: CityPass

This fall, take a bite the of the Big Apple for less money. Ever-changing New York City is an ideal autumn getaway. Just as the kids are heading back to school, thinning the crowds at the city’s most popular museums and landmarks, dozens of exciting new shows are opening in theatres on Broadway and beyond.

Leaves are beginning to change colour in Central Park, restaurant menus are shifting their focus to comfort food, and hotel deals are suddenly more plentiful.

A great Big Apple deal is New York CityPASS, which ensures that travellers experience the best of the city at nearly half of the regular price. Each New York CityPASS includes prepaid admission to the Empire State Building, American Museum of Natural History, The Metropolitan Museum of Art and The Museum of Modern Art (MoMA), as well as two option tickets.

The first option ticket lets holders choose between either a trip to the Statue of Liberty and Ellis Island or a Circle Line Sightseeing Cruise; the second, a choice between the Guggenheim Museum and Top of the Rock observation deck.

New York CityPASS costs $79 for adults (value $146) and $59 for kids, ages 6-17. In addition to the savings, New York CityPASS allows holders to bypass most main entrance ticket lines.

Manhattan’s fall visitors will be among the first to see two newly acquired collections of Conceptual art at the Museum of Modern Art (MoMA). And what better way to end the day than with a little music atop the Empire State Building. The 86th-floor observatory, open nightly until 2am (the last elevators go up at 1:15am), now offers live saxophone music (Thursday-Saturday, 10pm-1am).

New York CityPASS can be purchased online at CityPASS.com or at any of the CityPASS attractions. It is valid for nine consecutive days, beginning with the first day of use. CityPASS ticket booklets are also available for Atlanta, Boston, Chicago, Hollywood, Houston, Philadelphia, San Francisco, Seattle, Toronto and Southern California.

For more information on CityPASS, visit www.CityPASS.com

Fernie Alpine Resort, Canada, Opens Polar Peak Lift, The Biggest Vertical In The Canadian Rockies

At Fernie Alpine Resort, British Columbia, you have a ski destination not to miss this winter

The spectacular Polar Peak Lift will add onto the already incredible vertical at Fernie Alpine Resort, British Columbia, now giving the ski resort a whopping 3,550 vertical feet when it opens this winter. Combine the most snow in the Canadian Rockies, with the most alpine bowl skiing in the Canadian Rockies and the biggest vertical and you have your ski destination of choice in Canada.

With over 2,500 acres of terrain over five alpine bowls, the deepest snow in the Rockies and a year-long celebration commemorating 50 years of legendary skiing and riding and you have a ski destination not to miss this winter!

The Polar Peak lift is the only major new lift installation in the BC Rockies for this winter and one of a few new lift installations in North America. It is believed that it is the only new lift installation going to a mountain-top for this upcoming winter.

The Polar Peak Lift adds an above tree-line Bowl skiing experience with over 22 new runs and the incredible experience of skiing off the summit of one of the highest peaks in the Lizard Range, Polar Peak. In addition to the new Polar Peak Lift, Fernie Alpine Resort offers nine other lifts and 140 marked runs – now having the most Ski Runs in the Canadian Rockies.

The Polar Peak Lift provides quick access to the various ridge-lines above the major alpine bowls. This quicker access for Ski Patrol will speed up efforts to open up terrain following the regular snowfalls Fernie Alpine Resort receives.

For more information e-mail: Eileen Clarke at Tourism British Columbia at EClarke@TourismBC.co.uk  (picture credit: Tourism British Columbia)

IBIS Clubhouse and Pool

Ibis Club, Naples, Florida, USA

Apartments in IBIS Club are available from an unbelievable £35,000 and come with tenants already in place offering you returns of 7% – 9% NET from day one. Ibis Club is an upscale 134 apartment residential development. The community is built over 15 acres and features an attractive two acre lake, which affords lakefront views from a selection of units. Apartments are located on the ground and first floors. Apartments are available as 1-, 2- and 3-bedroom options and are priced from just £35,000.

For more information contact Property Frontiers on +44 (0) 1865 202700 or visit www.propertyfrontiers.com

Richmond House

Richmond House, Beylikduzu, Turkey

Located in the Istanbul district of Beylikduzu,  Richmond House provides elegant 1, 2 and 3 bedroom apartments that have been carefully designed to maximise their rental and resale potential.  Richmond House is superbly equipped with a high quality finish for today’s demanding professionals with a Jacuzzi, Fitness Centre, Cinema, Saunas and an underground multi floor car park. The nearby seaside area of Büyükçekmece (five minutes away) is very popular for being a favourite day trip and weekend break. Prices for a 1-bed apartment start from £50.000 and has a rent guarantee of 7.5% for two years £356.25 per month. Prices for a 2-bedroom apartment start from £65.000 and has a rent guarantee of 7.5% for two years £456.25 per month.

For more information please contact Gem Invest on +44 (0) 203 287 7440 or visit www.geminvest.net

Apes Hill Polo Club

Apes Hill Polo Club – Barbados

Luxurious semi-detached club villas have been designed with a modern yet classic plantation theme featuring solid mahogany doors and cream coral stone finishes, plantation shutters, high ceilings, large living and dining areas, and ample outdoor living.   Property owners automatically qualify for membership in the Apes Hill Country Club and can take advantage of becoming a member of the Golf Club. Apes Hill Polo Villas, 3- and 4-beds with plunge pools. From £1,000,000.

For more information please contact Barton Wyatt on 01344 843000 or visit www.bw-international.com

El Puerto

El Puerto II, Cala D’Or, Mallorca

Two bedroom apartments located on the south east coast of the island very close to the glamorous Marina de Cala D’Or. With three communal swimming pools available these properties are surrounded by outstanding natural beauty offering various other activities such as water sports, biking and golf in the local area. These properties are available now from €177,000 + VAT.

Contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com for more information. If you reside outside of the UK you will need to call 00 34 971 706 244.

Stewart Andersen for www.homesandtravel.co.uk

A Mapleridge home in Detroit

Detroit, Michigan is not alone in the United States as being a state that suffered in the economic downturn. The fact that it is also the eighth highest populated state and one famed for its automotive industry is not something to write off with the latest data from the FNC Residential Price Index reporting 2.9% positive year-on-year growth in house prices since January 2011.

Foreign investors have Detroit firmly in their sights as a lucrative destination in which to invest. They are attracted by the incredible rental returns and the values which also allows Detroit residents to have the opportunity to live in modernized, secure and affordable accommodation through government initiatives such as the HUD scheme.

It is the HUD scheme – Housing and Urban Development scheme – with which property investment experts Property Secrets are working, bringing foreign investors together with local housing bodies in Detroit to provide quality homes for residents.

When the automotive industry collapsed in Detroit there were significant redundancies and high levels of home foreclosures, forcing people into rented accommodation. Through HUD scheme initiatives including rent subsidies, grants and general assistance to private agencies or other bodies involved with housing, more and more people are able to stay in their homes.

These properties are subscribed to the HUD scheme meaning that owners purchase houses with tenants already in place, they are paid rents directly from the government

This in turn keeps rents stable and prevents communities from being blighted. But with over 9,000 people still on the waiting list to receive a rented home, more help is needed from investors to modernize existing run down properties and to offer the cash assistance to the government in order for them to subsidise rents.

Alan Forsyth, Director of Property Secrets, explans: “We are offering 3- and 4-bedroom, fully refurbished houses to investors from $40,500, (around £27,000) often at least 50% under market value. These were selling five to six years ago for over $100,000 and it is just a matter of time before they fully recover, allowing our clients to gain substantially, through our relationship with the banks in USA.

“These properties are subscribed to the HUD scheme meaning that owners purchase houses with tenants already in place, they are paid rents directly from the government plus we offer a 12-month rental and are provided with a maintenance guarantee so offering a safe and secure investment. And with a typical 3-bedroom home achieving rents of over $800 a month, an average investment through us will net yield a minimum of 13%, gross yields over 20%.

“Within three days of releasing the investment information to our clients we had 19 property reservations. Our clients can see that this is an excellent opportunity for a hands-free and profitable investment. I can understand why it has been met with a level of scepticism by some. When you consider the US property market today and relate to it these kind of rental yields, it seems too good to be true, but the fact is there is such high demand for property rentals and the market has already reached an all-time low that on a basic level of demand and supply these figures are not only achievable but are on the modest side.”

As with many regions in the US, there are now some glimmers of recovery and market regeneration in Detroit with the news that the Ford Motor Company has chosen to build its next-generation Ford Focus model in Wayne, a suburb of Detroit. Ford intends to invest around $550 million to retool the existing plant in Wayne giving it the capability to make the environmentally-friendly electric cars.

Ford Motor Company intends to invest around $550 million to retool the existing plant in Wayne, Detroit, giving it the capability to make environmentally-friendly electric cars

With plans to produce two million vehicles a year there will be a sustained input from the car manufacturer from 2011 onwards and an extra requirement for quality properties in the area to house the workers. With jobs and growth comes prosperity and a positive outlook for early investors.

This outlook is backed up by figures recently released from the FNC Residential Price Index. February has been historically, a pivotal month in predicting prices for the rest of the year and so experts are now saying that the market is ready for a gradual rebound and the latest statistics released on existing home sales shows a modest increase.

General market conditions have improved in the last two months and of the markets tracked by the FNC 30-MSA Composite Price Index, Detroit has shown positive year-on-year growth in house prices of 2.9% since January 2011.

Forsyth concludes: “We are so confident with our investment opportunities in Detroit that we are the only company in the UK to offer 50% finance to our clients, adding a real incentive to buyers. This is at a fixed rate of just 3.95%, and has allowed our clients to increase their return on investment even further.”

For more information and a full investment pack, contact Property Secrets at: www.propertysecrets.net

The recent property price fall means that homes in Atlanta are now at their cheapest since prices peaked in 2006

Atlanta may not be the automatic first choice for those seeking to buy an investment property, but there’s more to Atlanta than meets the eye and with Forbes Magazine recently ranking Atlanta as the number one rental market in the US and CNN Money quoted as saying Atlanta is the 4^th best city in America to invest in, it may be time to take a closer look.

The story of the Atlanta property market really begins back in 2005 when a record number of properties were built during the boom years. During these rewarding investment years all was well, but as the economic downturn began to bite, prices started to decline rapidly due to an oversupply of properties.

This was further exacerbated by job losses and many were forced to cut prices on their homes in order to sell them quickly. Most foreclosures in the area are related directly to job losses, but high unemployment levels here are thought to only be temporary as Atlanta’s economy is fully expected to support growth compared to other areas which have suffered major declines in property prices.

Loxley McKenzie, managing director of www.colordarcy.com said: “The recent property price fall means that homes in Atlanta are now at their cheapest since prices peaked in 2006. This and the fact that many people were ousted from the property market due to recession have meant that there has been an increased need for rental accommodation.”

Rental occupancy in Atlanta is now at it’s highest since 2008 and is running at over 90 per cent. This has had a knock-on effect in increasing rental rates, with the biggest expansion being in those members of the population who are older or who have low incomes.

Downtown Atlanta, Georgia

Furthermore, demolition of inner city areas combined with decreased housing construction has resulted in Atlanta now attracting many young people who are seeking work in the city. The future of the Atlanta property market is now looking rather more attractive and has been buoyed by many large household name companies in the region seeing their stocks rise significantly in 2010 with many posting double digit returns as their industries have grown. These companies are now beginning to invest in new equipment, staff and software in order to deal with the expected recovery in the economy.”

These factors present good opportunities for overseas investors who are looking for long-term capital gains whilst reaping the rewards of a burgeoning rental market.

River Station Townhouses are a prime example of one of the attractive investment opportunities for overseas buyers today. Coming to the market at just £44,000 these three-bedroom fully equipped ‘turnkey’ properties are ideally located. Situated just south of Atlanta Airport they offer direct access to downtown Atlanta which is just 12 miles away.

These are currently discounted by $20,000 on the US open market-price and come to the investor with tenants in situ. Each property is managed on the owner’s behalf and provides a 12-month guaranteed rental income. After all outgoings have been calculated, each property will provide the investor with a monthly income of £445. That is a net yield of 12 per cent.

For more information, go to www.colordarcy.com

Siesta Lago Condominiums

According to Colin Murphy, director of Torcana – specialists in discounted Florida Real Estate, “We are currently marketing Siesta Lago where properties start from £37,000 for a spacious (840 sq ft), one bedroom, one bathroom apartment which, after costs such as maintenance, tax and insurance, will bring in a net income of around £3,165 per year – that equates to 8.55 per cent net per annum. A three bedroom, two bathroom villa of 1,130 sq ft for £61,500 produces a net annual income of approximately £5,112 per year – a net return of 8.3 per cent.”

Murphy continued: “The housing statistic pages from the Orlando Realtors Association show that property prices are actually rising. The average sales figures for 2008, 2009 and 2010 clearly show prices decreasing very fast in 2008 and 2009 but holding steady in 2010 apart from a jump in April – June when buyers rushed to take advantage of an expiring tax credit.

“For example, in January 2009 the average sales price was $190,243 (£117,878) which fell to $159,942 (£99,127) in December 2009. In contrast, the average sales price in January 2010 was $140,422 (£87,029) with the average sales price in December 2010 being $146,582 (£90,831).”

In other words, average sales prices in Orlando actually increased in 2010.

Whether attracting professional workers or retirees, Orlando has a great deal to offer

“It is also no coincidence that Orlando inventory levels are at their lowest level in almost five years. They peaked at 26,330 in Sept 2007 and didn’t fall below 20,000 until May 2009. Throughout 2010 they held steady between 15,000 – 16,000 something that has not happened since early 2006. A major trend, this should continue throughout 2011.”

Quality of life

The property boom didn’t just appear in the Sunshine State out of the blue. The real estate market was healthy, based on firm fundamentals prior to the world monetary recession. The fundamentals included such things as quality of life, space, good schools, employment opportunities, a world class financial and tourism sector plus, of course, glorious summers and gentle winter sunshine.

Whether attracting professional workers or retirees, Orlando has a great deal to offer and because of its high tech economy encompassing large multinationals and government agencies, it draws middle class professionals eager to rent or buy.

Properties at Siesta Lago

CONDOS

1-bed, 1-bath 840 sq ft on sale for £37,000 ($59,900)

This spacious condo includes tiled flooring, , balcony and air conditioning.

One of these properties already has a tenant in place for this unit paying $780 (£539) per month which equates to a net rental yield after running costs and overheads of 8.55%.

VILLAS

3-bed, 2-bath 1,130 sq ft on sale for £61,500 ($99,900)

This modern villa includes hardwood flooring, granite counter tops, wooden kitchen cabinets, stainless steel appliances, balcony and air conditioning.

One of these properties already has a tenant in place for this unit paying $1,135 (£703) per month which equates to a net rental yield after running costs and overheads of 8.28%.

For more information, go online at: www.torcana.com

(Inventory levels are the total numbers of property available for sale and it is calculated on a monthly basis. Florida is highly regulated and licensed realtors can view all listed properties available on what´s called a Multiple Listing System (MLS). These can be easily tracked, and a number of organisations (including Orlando Regional Realtors Association) tabulate and compile data for their members to view. In September 2007, there were more completed properties available to buy than ever before.)

A four bedroom Florida home, complete with swimming pool on the market at just £154,000 through Colordarcy

Colordarcy Investment Ltd and Coldwell Banker Feltrim have announced a definitive property partnership agreement, which is projected to return the companies an extra $10 million dollars in revenue over the next three years.

The two companies have been working together on a trial basis for the last 18 months and the success of this trial has led to a unique partnership which is well placed to provide unparalleled business acumen in respect of servicing the demand for Florida Disney Villas and tenanted apartments. The partnership will see the launch of a new Central Database System,

Loxley McKenzie, Managing Director of Colordarcy London says: “The new Central Database System (CDS) will give our clients access to every single property for sale in Florida and we will be in a position with a click of a button to provide clients with previous sales prices, bank repossession data where applicable, associated costs and full details of properties including Google maps, videos and floor plans.

Properties in Florida are much more in demand among investors following the financial crisis

“In addition, clients can visit either the London or Florida offices to discuss their investment goals and objectives in person with a Licensed Florida Realtor. We will also be recruiting more staff to handle after-sales enquiries.

“I believe that we already offer a complete Florida property pre- and aftercare programme – we take care of management, tenant finding and the opening of US bank accounts, we apply for non-resident tax numbers and oversee currency management. In addition there is our aftercare service in the UK and our USA client management contact centre. The Colordarcy/Coldwell Banker Feltrim partnership will certainly take our clients experience to the next level.”

Garry Walmsley is the founder and owner of ‘My Florida Property Store’, working in conjunction with Coldwell Banker Feltrim as part of the oldest Real Estate Company in the United States which has recently celebrated its 100^th birthday.

This attractive Florida home is located in Orlando

As a licensed Florida Realtor® and UK Citizen residing in Orlando, Garry is a member of the National, State and County Association of Realtors® and has been a recipient of many awards by Coldwell Banker for his consistent business acumen and principles, most notably in receiving the International President’s Circle Award in each of the last four years for performance within the top two per cent of Realtors® nationwide.

Colordarcy is also a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Its aim is to provide the clients with properties that offer the unique combination of strong growth returns and cash flow-positive income. Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

The company provides complete support before, during and after a sale, including viewing trips, finding tenants, financial assistance and currency services. Colordarcy is a member of the Association of International Property Professionals (AIPP), and abides by its Code of Conduct which was drawn up to protect the buyer by ensuring that members follow professional guidelines and procedures.

Colordarcy specialises in properties in Brazil, Egypt, France, Greece, Portugal, Spain, Turkey, Florida and Atlanta.

For more information, go on-line at: www.colordarcy.com or call: 0207 100 2393

A property at 4324 College in St Louis, Missouri

The St. Louis Metropolitan Area is the largest metropolitan area in Missouri, and the 16th largest in the United States. In addition, it has an estimated total population of 2,820,816 as of 1 July, 2008. Greater St. Louis has the second lowest cost of living among the nation’s 20 largest metropolitan areas for 2009.

St. Louis ranks as the third most affordable housing market when compared with the top 20 large metropolitan areas in the country, according to the National Association of Home Builders during the fourth quarter of 2009. Over 80% percent of homes sold are affordable for families earning the area’s median household income of $67,900.

St. Louis has over 20, Fortune 1000 companies and lists as the fourth largest Fortune 500 company-based city in the USA. St. Louis is home to some of the country’s largest privately-held corporations, including Enterprise Rent-A-Car, Graybar, Scottrade, Edward Jones, and is also home to some of the largest public corporations, including Emerson, Energizer, Anheuser-Busch/In Bev (North American Headquarters), Boeing Integrated Defense Systems, Purina, Express Scripts, Charter Communications, Monsanto Company, and Wells Fargo Advisers.

St. Louis has an economy that has become diversified enough to withstand difficult times and has even stayed ahead of the curve when dealing with the recent recession. According to US Department of Labor, St Louis currently has a 9.3% unemployment rate which is slightly better than the U.S. nationwide unemployment rate which is now over 10%.

A superb US property investment opportunity

A Ramona Avenue property that is currently on the market

The city of St Louis, Missouri represents a superb US property investment opportunity with three-bed, one-bath detached family homes at only $49 per sq.ft. and the average build cost of similar new property in the city at $80 per sq.ft – nearly double. These investment properties have been handpicked and completely refurbished to a very high standard. There is a huge demand for rental accommodation in St Louis (over 50% of residents rent their homes) and so these investment properties are available pre-tenanted and investors can enjoy net yields of 12.2%

A totally hands-off investment, the properties are fully managed by a local property management company and multiple exit strategies available. In addition, exclusive finance packages are available.

• Fully refurbished family homes
• Properties from $52,250
• Tenants already in place
• Huge discount to replacement cost
• Local property management company
• Freehold title clean, clear of debt
• Real exit strategies
• Home maintenance included for one year

A wide selection of detached family homes are available across St Louis ranging from a three-bed, one-bath home on Lucas & Hunt Road covering some 1,032 sq.ft from $52,250 to a three-bed, one-bath 1,080 home on Avondale Avenue for $55,000.

All properties are refurbished to high standards and consist of:

• Brand new kitchens including white goods
• New flooring installed
• New air conditioning where required
• New dry walling where required
• Interior walls repainted
• Exterior walls repainted where necessary
• Bathroom fixtures and fittings refurbished or new
• Electrical and plumbing systems checked and repaired/replaced where necessary
• Front and rear gardens cleared
• First year home warranty (maintenance insurance) included with all properties
• Homes are refurbished so that they are suitable for the private rental market and qualify for the HUD (US Department of Housing and Urban Development) rental program

Finance:

An exclusive finance package is available

It is possible to invest from as little as £16,000 cash on a 50% Loan to Value basis. With a repayment term from five years and no prepayment penalties this is a cash positive investment allowing purchasers to own the property outright in five years while making a small income in the interim, all from the tenant paying finance and property costs.

Exit Strategy:

• Sell to the tenant
• Sell on the open market – as the general market picks up Experience International can help advertise, promote and market the property (the company recommends holding the property for five years for optimal capital growth)
• Refinance – withdraw the equity after 12 months
• Experience International matches sellers together – single units are packaged and sold as portfolios to investors
• A blend of all of these point will allow for a faster exit based on a portion of tenants taking up the mortgage offer as well as open market and portfolio sales

More information is available at www.experience-international.com

Look to America’s heartland for a high yielding property investment

With Sterling’s value increasing to a five month high against the US Dollar and the numbers seeking rental accommodation rising due to continuing foreclosures, it would seem that the window of opportunity to invest in the US remains very much open.

Savvy investors are now looking for the next buy-to-let hotspot and it is to Heartland America that attention is turning. The mid-western states of Missouri and Ohio, home to the growing cities of St Louis, Kansas City, Toledo and Columbus, present a highly appealing investment environment with sustained demand for rental accommodation generated by the large employment base and detached family homes available at up to half below replacement build costs.

A home on Somerset Street, Toledo

Steven Worboys, MD of US property investment experts, Experience International, comments: “There is huge demand for rental accommodation from working families in the mid-western cities such as St Louis and Toledo. Up to 50% of residents in St Louis rent their homes with the majority seeking detached family homes. Property prices in these cities are well below the national median of $182,600 (Zillow.com) and owners can expect rental incomes of up to 12.5% in addition to capital gain.”

Combined, these cities hold a population in excess of six million and have weathered the economic storm better than many other higher profile cities. According to the U.S. Department of Labor, Kansas City has held a lower unemployment rate than the national rate with the healthcare and service industries replacing most jobs lost in the manufacturing sector and Columbus has been ranked the nation’s sixth most stable market by Standard & Poor’s as well as one of the 10 safest real estate markets in the US by the PMI Institute.

Data from the National Association of Realtors (NAR) revealed that property prices in St Louis for Q1 2010 were higher than the previous 12 months with appreciation at 15.1%, Toledo showed 13.3% appreciation, Columbus 6.3% and Kansas City 3.2% over the same period.

Worboys continues: “Many believe that the entire US was affected to the same extent by the recession but this is simply not the case. Indeed some states saw significant unemployment and as a consequence thousands of foreclosed properties but many states such as those in the Heartland due to diverse employment sectors avoided worst case scenarios and now as the economy shows continued albeit slow growth these cities are the first to recover.”

It is this recovery that shrewd international investors are keen to capitalise on. With three bedroom detached family homes available from as little as $24,500 (with 50% LTV finance) entry into the Toledo property market for example requires low cash outlay. Fully refurbished properties in sought after areas can expect to generate up to $860 per month and are sold with tenants already in place on long-term leases. One year’s home maintenance is also included and investors can take advantage of exclusive finance packages available.

To find out more about investing in property in Heartland America then contact Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.co.uk.

UK investors offered opportunity to help USA underprivileged and make a profit

UK based property investment firm Assetz plc is offering British investors a chance to buy four and five-bedroom homes in America’s motor city of Detroit to rent to low income families and with a guaranteed return of more than 20%.

The USA government backed scheme ensures investor’s properties are protected as tenants are bound to look after them as if they were their own or face ejection from the scheme forever. The entry level is $50,000 for a four or five bedroom executive detached house (around £32,500), a quarter of what these properties were valued at around $200,000 four years ago, offering gross yields of 23%.

Michigan Four bedroom, two bathroom house over 1,700 sq ft in Detroit, Michigan. Priced at approximately £30,650. Contact Assetz USA

Properties are backed by the US department of Housing and Urban Development (HUD), helping to increase investor confidence and maintain a strong demand for these properties – there are already over 9,000 people waiting to be housed in the metropolitan area of Detroit.

Martin Sadler, Sales Manager of Assetz International, comments:
“This scheme represents a superb return on investment for a minimal cash outlay. You won’t find such an attractive investment opportunity anywhere in Europe at the moment. The scheme has clear, indispensable benefits to families and the community at large, providing quality, affordable accommodation to the 9,000-plus people currently waiting for housing in Detroit. It is even environmentally conscious, putting empty, foreclosed property back into use.

“We undertake the refurbishment of the properties, and our partners in Detroit manage them very closely. This involves a government inspection every year to ensure the property is being looked after. In addition our management company inspects each property every quarter. The strict regulations for occupancy safeguard against any unruly tenant behaviour, offering purchasers a well-maintained investment vehicle.”

• Why Detroit? Largest city in the state of Michigan
• Population of 5.4m
• 240,000 businesses located in this region
• Huge demand – over 9,000 tenants waiting for a home
• Expected capital growth on property of 21.5% over next 12 months
• Ethical investment – helping underprivileged families to live in a safe and stable community

Key facts

• 4-5 bedroom detached homes from $50,000 (around £32,500)
• Gross rent per annum $11,400
• Gross yields over 23.6%
• Following refurbishment value of property increases by at least 100%
• Hands-off investments – fully managed with inspections and reports
• Exit strategies in place – either by sale to tenant or sale onto open market when recovery takes off
• After 12 months refinance available or via equity withdrawal

For further information contact Assetz USA on 0845 430 0010 or email usa@assetz.co.uk