properties in Detroit see 8.8% price increase

International investors looking to enter the American property market will already know that pre-tenanted properties are one of the most stable choice when looking for a hassle-free investments.
Our buyers are just now discovering that buy-to-let properties in Detroit are a popular choice due to their strong capital appreciation and high rental yields.

According to the Detroit Free Press, both house sales and median prices of property in Detroit saw an increase in September due to increased sales activity throughout the summer months.

As experts in Detroit property investments it has come as no surprise to us at USA Property Investor that the popularity of pre-tenanted properties in Detroit is on the rise and this success is not exclusive to us. The Detroit Free Press also reported an 8.2% rise in sales from 4,222 to 4,568 in September, with median prices rising by 10% from $68,000 last month to $74,900 across Metro Detroit. In Wayne County alone, property sales increased by 1.6% from 1,776 to 1,804 in September. Median sales prices were also up 8.8% from $40,000 to $43,500.

These figures are really positive and prove that now is the right time for investors looking to enter buy-to-let property investments to start searching for the right property.

We believe that location is one of the most important factors when purchasing a property in Detroit, especially if you’re looking to rent it out. That’s why here at USA Property Investor we carefully pick the best properties, in the best neighbourhoods to ensure that our investors get the most out of their purchase.

With finance available and discounts for cash buyers on a variety of pre-tenanted houses in Detroit, USA Property Investor have a range of houses in popular areas in the city. For more details about buy-to-let property investment please contact us on Tel: +44 (0)845 438 0634 Tel: +44 (0)1253 820 905

Strong demand for properties in Detroit sparks bidding wars

Despite the fact that the housing market has been flooded since 2006, finding a refurbished, ready-to-move-in property in Detroit has proven hard for both buyers and renters.

This increasing demand for refurbished properties in Detroit has sparked bidding wars among house hunters, especially for those looking for quality homes in decent neighbourhoods.

Most House hunters are faced with a market dominated by trashed foreclosed homes or homes that are owned by people who simply could not afford repairs or updates during times of recession. Most home owners are reluctant to put quality houses on the market if there mortgages are underwater and are waiting for higher prices to return.

“As soon as anything hits the market, it’s a stampede to get there,” Andy Hargreaves from Plymouth Realtor commented. “It’s not uncommon for us to see five to eight offers on a good home.”

Property sales in Detroit have seen a 1.2% annual gain throughout July, with a strong demand in the summer months according to the S&P/Case-Shiller home price indices. Despite this, the number of homes for sale in Detroit dropped nearly 29% in July from the same time last year, according to data from Realtor.com.

What’s more, most purchased properties in Detroit were bought faster than the national average. In July the median age of inventory in metro Detroit was 67 days compared with 97 days nationally.

Over the last year the property market in Detroit has also seen a tightened supply of properties in the tri-county area. Oakland County had a 5.7-month supply at the end of June compared with a 6.8-month supply in June 2010.

In Wayne County, there was a 6-month supply of homes in June 2010, which fell to a 5.5-month supply a year later.

In a normal market has 3-6 months – anything over 6 months is a buyer’s market, and less than 3 months is a seller’s market.

These factors have contributed to what property experts have named a ‘bidding war’ for ready-to-move-in properties in Detroit.

Buy-to-let properties in Detroit have become a popular option for investors looking for strong rental yields and potential capital appreciation. Working with property specialists, investors can purchase refurbished houses through professional management companies who offer pre-tenanted options for an instant income.

With tenancies in place for 12 months – and most tenants looking for long terms lets due to lack of available, quality housing – this is a hassle-free way for purchasers to generate income from the property market in Detroit.

More ways to contact us!

We’ve just launched our online chat feature which allows anyone who wants to talk with us another great way of doing just that.

When you first go to our website, usapropertyinvestor.com, you’ll be asked if you would like to talk with an operator. From there you can chat with one of us about all things property!

If you’re not ready to chat with anyone but would still like to later, just look for the “Live Chat” in the top right of the page – click here and you’ll be able to instantly speak to one of our property specialists.

Is Zillow any good?

Well, just to be awkward – Yes and No…

For those that haven’t used Zillow before. Zillow is an online portal where you can search for properties in the USA and find details for it such as; if it’s on the open market, it’s price, previous selling price, size, taxable values and sometimes pictures and maps of it’s location.

Zillow gathers it’s data automatically from various places and collates them into one single page. On the face of it this is a fantastic tool when researching a particular deal or area. The problem is, that the data if very often inaccurate, out-of-date, or corrupted.

Take previous sales prices for example. In the USA, recorded sales prices often don’t take into account the true sales value because taxes, or other liens are often settled outside of the transaction and can quite often run into the thousands. The same can be said about a property’s’ list price. Using Zillow, an online researcher will likely find that the list price does not take into account liens and other conditions or restrictions on the property.

In many market in the USA the number of foreclosures in any given area make it very difficult to assess the true market value of a property. Zillow can only take into account an average price of homes in the area, and does not use any algorithms to assess whether the property is a bank foreclosure, it’s size compared to other properties, it’s condition and many other factors that we would use to determine it’s value.

But it’s not all bad news….

So are we saying we should discount Zillow altogether? Not at all. Zillow gives you a base to start from. Type is any US address and you’ll find some useful information on any property. Using the maps, you can zoom in and see the street views – this is a fantastic tool. You can often find the number of rooms, square footage, garden (lot) size, and other features about the property and compare it to other listings as well.

Our advice….Use Zillow, but understand it’s limits.

What are the top 10 places to invest in the USA?

CNN have put together the top cities in the USA to invest. And guess what, we’re active in half of these markets offering some of the best opportunities in property investment today.

It’s no surpise really. USA property is recognised as the best investments in the world with low prices, high rental yields, large capital rises all in stable and affordable markets. We support CNN’s findings and whilst the data they use might be a little simplistic the results are the same for us.

Read CNN’s full story here