It's Detroit Time
DETROIT – HERE WE COME
Are you looking for a high return on your real estate investment? Detroit is the last city that comes to mind … its hit the headlinesfor the wrong reasons in the last few years. Yet, there are nowencouraging signs of recovery.
Robust US Real Estate Market
In recent years, investors from all over the world have become accustomed to enjoying returns on their US real estate assets. As the American economy recovers from the sub-prime crisis, more and more players – both small and large –entered the market. Supply is reaching a certain saturation point which has resulted in a levelling off and steadying of annual returns in many areas of the US.The focus has now moved to new parts of the country which, until recently, were considered less attractive. The average annual return on real estate investment in the US currently stands at 10% and the number of empty, foreclosed homes is decreasing at a steady rate. Astute investors looking for new opportunities have now turned to Detroit in Wayne County, Michigan.
The Detroit – Sderot Connection
Who remembers the city of Sderot in 2008 during 'Operation Cast Lead"? Residents fled the city during the military offensive, yet a handful of 'crazies' came in and snapped up real estate. Now, as Israeli real estate prices skyrocket, they have enjoyed the full benefit of the property bubble. Similarly, the collapse of the automobile industry in Detroit caused major damage to the city's economy, followed by the sub-prime crisis which caused real estate prices to plummet.Detroit now offers low real estate prices combined with signs of an economic recovery.There is no need to purchase the most derelict property, even if it's going for a ridiculously low price. The real value of the property is probably much less than the asking price. Yet for the small amount of $45,000 you can purchase attractive, renovated and rented out homes that yield a 10% return. These low prices are due to housing subsidies provided by the State as part of the Detroit urban renewal plan.
The key to economic security and financial success lies in the elusive area of risk management. We at Tsurel Estates are here to help you minimize your risks and maximize your profits.
Foreclosed properties in a city with high unemployment rates - When prices are low, it's difficult to lose, but not impossible. The secret, as usual, is to choose the right asset. Unemployment rates in Detroit and environs are still high. So it's important to take advice from someone who understands the market and knows how to pinpoint the right investment opportunities.
High Returns and Economic Awakening
Detroit and environs currently lead the national US table of real estate returns. The Case Shiller Home Price Index for Detroit shows that in 2012 home prices jumped by 13.6%. The upward trend continued in 2013, and the average annual return on investment was 26%. Investors from all over the world continue to snap up real estate in the city to enjoy an annual return of 20%. Some assets have even doubled their value within one year.
The Light at the end of the Tunnel
If you are prepared to take risks, then Detroit is a very interesting investment proposal. Unemployment levels in the US are dropping and currently stand at 5.7%, whereas in the Detroit area the level stands at 8% and continues to improve. Incoming investments and industry to the city are supported substantially as well as projects to attract artists and students to the city.
Want to hear more about investing in Detroit?
Contact Tsurel Estates for a free consultation about the hottest real estate possibilities.