The U.S. Dollar is trading close to a 12 month high

“The last couple of week’s has seen a spike in the value of Sterling as currency markets appear to have priced in an interest rate hike in May.

This has provided us with some excellent buying opportunities despite concerns over the effects the governments ongoing austerity measures and the possibility of a double dip recession will have on the UK economy.

The U.S. Dollar is trading close to a 12 month high following the Federal Reserve’s Chairman Ben Bernanke stating US unemployment is going to increase and a full recovery in America is not expected until 2012. Inflation in America still remains relatively low making further Quantitative Easing more likely and an interest rate hike less likely – therefore making the Dollar a less popular currency for investors and a cheaper currency for Brits to buy!!

Sterling has had mixed fortunes against the other major currencies, strengthening recently against the New Zealand and Australian Dollars following concerns of the Chinese economy slowing, weakening against the Swiss Franc which is benefitting from investors wanting to place money in “safe havens” and has strengthened considerably against the South African Rand.”

If you’d like help arranging your currency drop us an email.

Britons cash in on Detroit homes crash

British investors are starting to look at foreign property again, with some snapping up homes in American cities such as Detroit.

The recession hit demand for overseas property, with foreign currency brokers saying their business over the past two years has been dominated by expats selling their houses and returning funds to the UK.

However, brokers say the tide has started to turn, with FC Exchange reporting a surge in clients interested in using overseas property to boost income.

Nick Fullerton at FC Exchange said: “In the past six months or so, we have started to notice clients seeking to invest again in properties abroad. They have seen a notable drop in overseas property prices and are finding that the risks of owning houses abroad are acceptable compared with having money stagnating in a UK savings account.”

His firm has seen a 75% increase in inquiries from clients looking to buy in Europe, especially Spain, and America in the past six months. Property prices have dropped by 20% to 30% in Spain since 2007 and more than 30% in the US since the boom ended in 2006.

Fullerton said: “In particular, we have noted a number of clients expressing interest in US cities such as Detroit. The Michigan state authorities are working with estate agents to sell repossessed homes to investors, who will then let them to the growing rental market.”

Assetz USA, an estate agent, is seeking UK buyers for three-bedroom detached homes in Detroit, Michigan, priced between $45,000 (£27,700) and $55,000. They offer net rental yields of up to 15% backed by a state housing scheme. All were foreclosed, or repossessed, and the price includes taxes, fees and renovation costs.

The state scheme, called Section 8, provides accommodation for families with income of less than $71,000, many of whom have had their own homes repossessed.

Assetz USA said it had sold more than 100 homes through the scheme in the past 18 months, with all of them let within four months.

Unlike in Britain, where council tenants are allocated accommodation, Section 8 tenants are free to choose. Tony Halsall at Assetz USA said: “Their choice is limited only to those properties that have been passed as acceptable for the scheme by the state. Naturally, tenants will always choose nicely presented properties in good areas and this is the key to this proposition.

“The scheme is particularly attractive for long-distance landlords because the rent is secure and comes directly from the Section 8 programme. The tenants also tend to be stable working families who stay much longer than open-market rentals. The sheer number of bank foreclosures has left millions of former homeowners needing somewhere to live and the rental market is booming.”

Paul Dales at Capital Economics, the research consultancy, said: “The one big positive for Michigan is that prices have fallen so much — by almost 30% — that, relative to incomes, housing looks incredibly undervalued. Last year, housing in Michigan was more undervalued than in any other state apart from Nevada.

Kevin Gardiner at Barclays Wealth, the private bank, said: “Very few commentators seem willing to advance the possibility of a rebound in activity and prices any time soon, but compared to some of the booms seen in Europe, the surge in US house prices in the last cycle was relatively modest and has now been largely unwound. We would be less surprised than the market to see activity and prices pick up markedly in 2011.”

The comments here are exactly what we at UPI have been advocating for over 2 years now. It is also worth noting that we offer our clients the same investments significantly cheaper with prices between $36,000 and $40,000.

What’s more our finance options make the barrier to entry even smaller for our investors and enable them to make their funds go even further.

If you’d like to join our Detroit program, give us a call.

Kind regards,

Oliver Booth
info@usapropertyinvestor.co.uk
t: +44 (0)845 438 0634
m: +44 (0)7807 520 502

Detroit ticks all the right boxes for our investors

We had a fantastic number of new clients joining our Detroit program over the last two months in what is traditionally the quietest time of the year!

Not so surprising really when you look at our 5 key points:
• Can we buy below current market value?
• Is their evidence for prices to rise over the next 5 years?
• Can the local market afford to buy and rent here?
• What rental yields can I get now? And if prices rise?
• What lending is available to us, and to other investors/home owners?

Detroit for us has always answered all these questions and ticked all the right boxes.

Why is our product market leading?
1. We believe we are the only company offering finance – at 3.95% interest fixed over 10 years!
2. We have secured our properties at 15% below other UK property companies, giving an excellent discount to investors!

Low prices. 3 & 4 bedroom, fully refurbished houses from $36,000 – often 50% and more under market value.

High demand for rental property. Currently there are over 9,000 families on a waiting list for good rental property. The government is desperate for housing from private investment, and we can rent these for $800 a month.

GUARANTEED rents. We focus on tenants on the HUD scheme (Housing and Urban Development.) The government will pay the rents directly to you every month.

Here is a typical Example…

This is a stunning property in a very desirable area of Detroit. A three bedroom, two bath colonial property with over 1600 sq ft. The property is about to begin refurbishment in preparation for rental and resale. A house like this 5 years ago would have sold over $150,000. The property will be sold turn-key, refurbished, tenanted and professionally managed. (already under offer)

The Figures

Cash Purchase
Purchase Price: – $36,000 (£23,500) inc. all purchase and refurbishment costs

Potential Ongoing Cash-flow per month
Rental Income: – $850
Management: – $85
Insurance: – $55
Property taxes – $215
Profit: – $495

The Figures (on a mortgaged deal)

50% LTV Purchase
Purchase Price: – $40,000 (£26,000)
Mortgage 50% – $20,000
Deposit – $20,000 (£12,900)

Potential Ongoing Cash-flow per month
Rental Income: – $850
*Mortgage: – $202.02
Management: – $85
Insurance: – $55
Property taxes – $215
Profit: – $293
*Mortgage based on 10 year fixed rate capital repayment @3.95%

Interested? Give us a call or drop us an email, detroit@usapropertyinvestor.co.uk

The 5 most affordable cities in America

Five of America’s Most Affordable Cities

Omaha, Neb.
Asking Price Rank: 9
Salary Rank: 43
Cost-of-Living Rank: 5
Unemployment Rank: 1

Buffalo, N.Y.
Asking Price Rank: 2
Salary Rank: 47
Cost-of-Living Rank: 1
Unemployment Rank: 12

Detroit, Mich.
Asking Price Rank: 1
Salary Rank: 15
Cost-of-Living Rank: 2
Unemployment Rank: 48

Indianapolis, Ind.
Asking Price Rank: 7
Salary Rank: 31
Cost-of-Living Rank: 4
Unemployment Rank: 24

Cincinnati, Ohio
Asking Price Rank: 4
Salary Rank: 25
Cost-of-Living Rank: 6
Unemployment Rank: 32

Following The Recession, UPI Creates Unique Investment Opportunities For Its Clients.

Detroit’s recession has hit hard in recent times but is now beginning to find its feet again. UPI is leading the way, helping savvy investors apply their investment knowledge in bringing families together who have lost everything and helping them reclaim home life whilst producing fantastic property investments.

In Detroit, the recession struck particularly hard and escalating unemployment along with business closure has meant that many people who lost their jobs were simply unable to find another. The severity of the recession has left an unprecedented number of people finding themselves without the security of a job and a roof over their head.

As things begin to turn a corner, however, what was looking like a dire situation is now one that is offering a great deal of opportunity for those who want to purchase a property in Detroit at this time. Both investors and those now back in employment can look forward to a brighter future as people return to steady jobs and begin looking for somewhere to live and settle with their family.

UPI is assisting investors able to purchase and restore properties in a much needed area. In a region where there is a shortage of over 30,000 rental properties, UPI is now providing this service for its investors.

This real estate organisation is providing a service for investors by taking over the sourcing of quality properties. Those who invest with UPI finance the property deals and are able to gain returns without having to take responsibility for the restoration and management of the rental property. This is a win-win situation in which there is a net increase in the number of rental homes, providing much needed accommodation; plus investors can feel confident that they have secured in-demand, rental property in a location which has strong projections for future appreciation in property values.

This overwhelming demand for rental property means this is the perfect time for investors to enter the Detroit market. Investing here will give the city a much needed boost and will increase positive cash flow for the investor and a faster rate of capital appreciation.

When discussing how this investment system would play a part in rejuvenating Detroit, UPI owner Ollie Booth described what the boom in Detroit property means at this time. ‘Right now the city is changing and this means really great opportunities for investors who are ready to take advantage of that outstanding opportunity’.

Ensuring investors capitalize on this market, ensuring they maximize their cash flow whilst helping the growth of the city.