Detroit’s General Motors release bumper profits and says it’s gonna get even better

Detroit’s biggest car manufacturer, General Motors has releases it’s first quarter profits for this year in the amount of $865 million. This is much better than expected and great news not just for the stock holders and the government who gave them a $50 billion bailout package not so long ago. It’s great news for employees and would-be employees looking for work in ‘motor city.’

The chief executive went on to say “if you liked our first quarter financial results, stay tuned for our 2nd quarter. You will like it, it will be impressive.”

Not so long ago communities were angry about the closure of some plants, and dealers were frustrated about the decision to close a lot of it’s franchises.

Now things are looking very different indeed. Now dealers are upset because GM can’t build enough cars to cover demand, and suppliers are stressing out because of GM’s increased production. The unofficial word is that a new GM plant will be opening soon to cater for just this.

In addition to this, President Barack Obama declared that the US car industry is not just rebounding from recent problems, but on it’s way to being No.1 in the world again – a bold statement!

Further reports from the President said that the big three auto manufacturers, Ford, Chrysler and GM (all of which have huge operations in Detroit and surrounding cities,) were all operating at profit again.

A new deal between the government and Ford to lend them a $250 million bank loan to help export cars overseas, is expected to be repaid within 1 year including interest and charges.

The motor industry plays such a huge role in Detroit and it’s neighboring
towns. With this bright outlook and the government’s commitment, we can see why Detroit is one of the strongest recoveries economies in the US.

Perhaps we’re all gonna be seeing the words “made in America” inprinted behind our rear view mirrors before long!

Detroit | Strongest housing market, 33% increase by 2014

Quoting from an original article this week on America’s strongest housing markets. Here’s what they have to say about Detroit.

Biggest home price increase projected in 2014
Forecast 4-year price increase: 33.1 percent
Current median price: $51,000
Median family income: $54,400
Population: 1,925,850

“Since reaching a peak in 2006, home prices in the Detroit area have fallen 60.5 percent, according to the Fiserv Case-Shiller Indexes. As homes have become more affordable—the median home price in Detroit is lower than median family income—demand is expected to pick up. Prices are forecast to jump 33.1 percent over the next four years. George Moma, a broker with Century 21 Dupont Realtors, says the growing prevalence of short sales over foreclosures will help drive up the median price in the Detroit metro area. He adds that the area is attracting interest among international investors from the U.K., Dubai, Moscow, India, Ireland, and France.”

There has never been a better time to invest in this market. With prices low and rental demand high, now’s the time to start converting your mony to dollars.

Feelin the Detroit City heat and loving it!

I’ve traveled to Detroit this week to meet my team and meet some new members of our expanding team.

Looks like I came at the right time as the weather here is scorching hot! must be mid 30’s everyday – beats old blighty right now!

We’ve got so much going on here, property purchasing for clients, refurbishments, inspections, tenant screening, title work, new areas we’re looking at investing in, land contracts, the list is endless.

It’s not all work though. Downtown Detroit is lots of fun. Shopping centres, IMAX cinemas, Detroit Tigers played yesterday (I missed the game by the way,) bars and restaurants. I’d definitely recommend taking a visit here if you get the chance.

Detroit’s housing market continues to strengthen. Lots of demolishen of old redundant neighborhoods being converted into parks, and scenic areas within the city. Demand for rental property is soaring amongst investors and we feel this first hand. Section 8 are struggling to keep up with demand to do their inspections, which although frustrating for us and our clients, it is still a very good problem to have!

All in all a Detroit is a great city, business or pleasure, and I’d totally recommend putting it on your itinerary.

As for me, today I’m going back into downtown Detroit to do some shopping and then back to Dearborn for some more meetings with some of our team members this afternoon, then back to Plymouth to watch a movie and some dinner – well, I can’t work all the time!

Californian Property Baron sweeps up houses in Detroit

As we have said many times on this blog, Detroit is one of the hottest property areas for investors, and today we’ll bring you a story about one US investor who is making hay amongst the Detroit property market.

Michael Alexander is founder and co-owner of his property buying company in Detroit and together with his partner has already purchased 250 homes in Detroit and has a waiting list of buyers; the strategy is that when the Motor City rises again, and workers move back into the area, he can sell his properties for a tidy profit.

Finding the Properties
Alexander’s formula is pretty simple – he drives around nice neighbourhoods in Detroit and purchases any houses for sale in the street in the price range $20,000 – $30,000.

He then spends anywhere between $10,000 – $20,000 refurbishing the properties before either selling or renting the property.

Alexander avoids bad neighbourhoods in inner-city Detroit, as even though the house prices are very low, the houses will be impossible to rent out and hence offer no return.

Renting or Selling
Once the house has been refurbished, then it’s the turn of the property manager to earn his wages. His job is either to sell the property for anything between 20-30% profit, or alternatively to rent the property for a good return.

Success Rate
Of the 70 houses Alexander has refurbished since last winter, 64 have been successfully rented giving an extremely good return and success rate.

Summary
Alexander is executing exactly the strategy offered by UPI; we also source low-cost properties in good areas. Refurbish to a high-standard and then our property manger rents them out to give you a guaranteed 13% minimum return.

Take a ride on High Flying Florida

Press Release (July 27, 2010)

Time To Take A Ride On High-Flying Florida

Figures released last month have indicated that the Sunshine State has become a prime holiday destination once more for both US, and overseas visitors. Visit Florida, the official tourism arm of the state, announced that in the first quarter of 2010 an estimated 22.7 million holidaymakers descended upon the golden coast – an increase of 2.7 percent on the same period last year.

The breakdown of the figures show that 19.7 million US residents enjoyed Florida’s beaches, and waters, while there was an 8.1 percent increase of overseas visitors arriving at Florida’s airports for their time in the sun.

Ed Fouche, chairman of Visit Florida, was quick to extol the figures as great news for the state, and for its own efforts in promoting vacations in Florida, as well as an upturn in trips across the border by Canadians, which was up by 5.3 percent of the total.

“This clearly demonstrates,” he said, “that well-executed tourism marketing is a smart investment.”

It is a mantra that Ollie Booth, CEO of USA Property Investor, is also keen to echo.
“Florida is hot, in more than ways than one at the moment”, says Ollie, “and we are forecasting a surge in property investment in the next few months. With prices too good to miss, there has never been a better time to invest in the Sunshine State.”

For instance, in West Palm Beach, Orlando, you can purchase a 2-bedroom, refurbished condo with fantastic onsite amenities at a jaw-dropping 80% reduction from the original sale price. A 10% net yield on this rakes in a profit of $295 a month.

Or take a brand new 3 bed, 3 bathroom Orlando town house currently tenanted at $1,000-$1,100 a month. These are selling at just $99,950. A third phase of new-build will be available later this year – but the prices then will be starting from $155,000 per property.

“These are just some of the amazing investment opportunities that are currently available to investors,” says Ollie, “but the key word here is currently because with the new interest in Florida as a holiday destination, prices won’t stay this competitive for long.”

On current trends, new high-flying Florida could well spawn a new breed of high-flying investor.