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.
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