Strong Employment Prospects Means More Demand for Homes in Detroit

Interesting article on Detroit ‘Motor City’s’ housing market revival.

After years of decline, exposed and caricatured by satirist and filmmaker Michael Moore, Detroit is finally seeing growth with organisations such as the Detroit Economic Growth Corporation working to attract new business and working capital into the city and its surrounding area.

The US automobile industry, has long played a key role in the ‘Motor City’ of Detroit’s economic recovery, is also showing strong growth. The Ford Motor Co., for example, posted a $2.1 billion profit for the first quarter 2010, continuing the run of four straight quarterly profits since 2005.

In addition to this, as private and government investment flows in, demand for affordable accommodation and prospects for future employment look strong. Amongst recent projects is a proposal to construct the $5.3 billion Detroit River International Crossing project. This new project will connect Detroit to Windsor, Ontario on the Canadian side. It is forecast to create 10,000 construction jobs and more than 221,000 jobs in Michigan, many of which will go to outside workers and skilled crafts people from outside the area who will be looking for homes to rent in Detroit.

Detroit Property up | Ranks No.1 in Real Estate Market

A great article about the Detroit property market:

Homes for sale in Detroit are finding ready buyers as the property market picks up says realtors.

Real estate in Detroit is increasing in value, says a new report. ‘Motor City,’ the capital of America’s car industry for decades, Detroit is, according to the latest House Predictor forecasts, number one in housing market growth in the US with a remarkable increase in prices of 21.5% in 2010.

A surge of growth in startup property management companies across the city to cater for the high demand of rental property and investors moving into the market can be seen throughout Detroit.

Growth in the industrial and service sectors have seen a demand for homes for rent in Detroit. There is currently a shortfall of some 30,000 rental homes in the Metro Detroit area and shrewd buy-to-let investors are purchasing refurbished family homes in the most sought after locations at prices as little as £32,000, at huge discounts to market value.

If you’r looking to invest in one of the most exciting and profitable housing markets in the world then get in touch. All our properties are turn-key; refurbished, tenanted and managed for $40,000. On top of this, all are clients are able to finance these deals on a low interest mortgage with rates less than 4% fixed!

Seven property investment tips to succeed in real estate

Any investor new to the real estate market will need help and advice, so here we present our 7 tips to succeed in real estate investing. Read, understand and implement everything in this article and you’ll be well on your way to making your first solid investment in real estate.

#1 Partner with Experts
This is key; you cannot hope to know the ins and outs of real estate investing if you are new to the business, so you need to partner with an experienced party that can help you. You can develop a relationship with a real estate individual or a company; as long as they are reliable, experienced in real estate and honest you won’t go wrong.

#2 Work with Real Estate Developers

Very often some of the best bargains are to be had from developers selling off their own inventory; once you are in with the right developer you may be able to get some great bargains.

#3 Find Code Violations
A building code is a statutory requirement for a property; for example it may be that in a particular area they require some additional foundation work to protect the property from earthquakes. If the owner cannot afford the building work required to conform with this code, they may sell at a reduced price. All you need to do is to do the work and then you have a great property investment.

#4 Hunt Foreclosures
If a lender has to foreclose on a loan, they end up with what is known as a Real Estate Owned (REO) property, which they may not want to operate or own. So they will try and sell it off as soon as they can and will only look to recoup their original loan, so there may be many bargains to be had with foreclosures.

#5 Private Sales

In this recession and downturn, many sellers look to market their own properties without going through real estate agents, this way they avoid paying commissions. This can also be a source of many good deals.

#6 In Need of Maintenance
Properties in need of maintenance indicate that the owner is no longer interested in paying to upgrade the property, so these can also be good deals. These sales are often very easy as the seller is looking for a quick way out from the property.

#7 Create Your Own Numbers Spreadsheet!

Don’t rely on realtors for figures, do your own analysis and don’t forget to take account of taxes, commission, fees etc.

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.