A huge number of Dubai investors have recently targeted Detroit as the new trend in investing in The United States.Â Detroitâ€™s property appeal seems to be altogether different, offering none of the riches usually associated with property in Dubai, but very serious returns to investors looking to capitalize in the property crash in the automotive capital of the world â€œDetroitâ€.
The troubles of Detroit during the last few years has been well documented, specifically the challenges faced by large automotive industry based in the city during the last few years. In the eyes of the world Detroit is certainly labeled with a pessimistic stigma. What is less recognized or talked about other than the financial press is the current investment and real estate market currently happening in Detroit that Dubai investors canâ€™t get enough of.
Detroitâ€™s automotive industry has also overcome the challenges of the past few years. Here are a few facts that shaped the changes in the city; Fordâ€™s $2.1 billion first quarter profit wall double Wall Streets forecast and the company is on track for their most profitable year since 2000. General Motors is profitable for the first time in six years and progressing with an IPO later in the year.
These are just a few reasons why Dubai investors are currently pouring money into the US market with purchasing residential Detroit property in bulk packages. According to the Detroit Free Press property prices in Detroit between June 2010 and June 2011 rose by an incredible 39%. With recorded sales growth like this it is perhaps easy to see why Detroit is now ranked at number 1 in the housing predictors list of top US Real Estate markets for growth in 2012 and is forecast to experience a 23% appreciation in home prices for the year. And the media states that the market is continually decreasing.
With mortgage products remaining incredibly difficult to obtain in this market, cash remains king and offers those with capital tremendous buying power.Â Dubai investors can currently secure a quality 3 bedroom brick built detached house for around $35,ooo from Jetsetters Investment Properties inclusive of a 5 year rental guarantee.
The lack of credit in this market for buyers is also the key reason why purchasing power is so strong. Properties in Detroit are rented by working blue collar families, a skilled workforce in requirement of year round, long term rental accommodation. This is a very different scenario to locations such as California or Florida, which, are very much dependent upon tourist visitors and the industry that they have created.
With a 3 bedroom properties in the city of Detroit renting for between $800 to $1000 per month an annual yield of round about 22% can be achieved through Detroit real estate investment properties companies. The 5 year rental guarantees that Jetsetters Investment Properties offers a pays a yield of 13% per annual for a fully comprehensive service for those investors seeking an armchair investment.
Milan Ramsey is a Real Estate Investor Expert that specializes in Investment Properties, Rehabbing, Property Management, and Section 8. Her company Jetsetters Investment Properties has international investors & celebrity clientele.
For more information about Detroit real estate market, please visit www.Jetsetterinvestmentproperties.com