Why You Should Invest in Detroit Real Estate

Overseas buyers are snapping up Detroit investment property at a previously unseen rate. Let's look at why.

at the moment, the cost of houses in Detroit are still way less than houses in all most all other American markets. The cost of rent, however, has not dropped as much. That fact is excellent news for investors. Detroit investment properties can be acquired at prices that start as low as $37,995 according to one top real estate blog. However, there have been numerous media reports about homes in Detroit selling for even less than that amount.

Once investors have acquiried a rental home, they just to find a tenant which some companies can help with like Experience International for example who can help as they offer pre-tenanteed investment properties.

With the average rent in Detroit about $800 a month, investors are able to cover the cost of their mortgage payments and turn a huge profit on top. In fact rental yields are up to 25% in most cases. That amount is correct even when the overseas investors are forced to pay a management company to take care of their houses. Many foreign investors get these Detroit property investment deals because they are ready to make fast decisions. Some of them are even buying whole blocks of Detroit real estate. These investors come from the UK, Australia, China and some other countries.

Also the majority of the house renters in Detroit are currently subsidized by the U.S. government. There is a list of over 9,000 tenants who have been approved for section 8 housing. That means that they are waiting for a property with a government voucher for the cost of rent in their pockets. So many investors using this HUD scheme will never have to worry about the rent not being paid.

Detroit real estate provides investors the opportunity to get houses in Detroit with the chance to make up to a 250% ROI over five years. The houses are normally sold for a price that includes normally and a year’s worth of liability insurance in the cost. Even houses that don't include these things are attractive to many buyers as the ROI is so high. A lot of Detroit investment property is entirely paid for within five years by rental income alone and then the anticipation of capital appreciation is also strong as property prices are at rock bottom right now therefore it is easy to see why Detroit real estate is so attractive to so many investors.

Tags: numerous media, foreign investors, real estate blog, investment property