Why The USA (Detroit) Market Can Make You Money!
It’s a common fact amongst experienced investors to buy property when prices have fallen and there are signs of a recovery
Why is this
Simple, you are buying more property for your money, putting you in an excellent position to take advantage of the upturn in the market – both of which will lead to you making higher potential returns and profits.
So then the key to making the highest return in the USA market is based on two key aspects.
Reason 1 – Locking In Thousands Of Equity By Buying Bargain Property At Huge Discount To Market Value
Right now there are millions of repossessions in the US due to familiesbeing unable to maintain their mortgage payments. For most, this is simply due to one of the income earners losing their job.
Using our US partners, we can source properties that are up to 70%+ cheaper that they were last year.
In fact, many properties we are now sourcing are actually for significantly less than they were to build! This means that not only are you buying some incredible bargains, but you are achieving thousands of pounds instant equity from Day 1.
Reason 2 – Making Huge Returns By Spotting When The Market Will Recover.
Before the election the level of interest by USA and overseas investors in the market was at an all time low. Many people wanted to hold on to their money and see what the result of the election was. It was widely agreed that Barack Obama was the best candidate to help the wobbling USA economy.
Since his election, President Barack Obama is taking an active interest in Detroit and specifically the big 3 car companies, whom much of the Detroit workforce and economy rely upon.
The following proves why Detroit is now set to undergo a huge recovery – meaning your bargain properties could see large increase in value.
Fact 1 – Massive Capital Injection Detroit Economy = More Jobs And Investor Confidence
$50 billion has been allocated for the energy programme. Chrysler have been handed $1 billion dollars and are asking for another $5 billion. General Motors have had $13.4 billion dollars and want another $16.6 million. Ford – two years ago had $7 billion. This brings the total handouts to the auto industry in Detroit to $43 billion.
Fact 2 – There Is Limited Supply Of Repossessed (Foreclosure) Properties = Prices Increasing
This will have a shorter window than first anticipated because of plans to use 1 trillion dollars to buy back toxic assets from the banks – part of this programme will close down the wave of foreclosure properties. At the very best, it could be 18 months but could easily be as short as 12 months.
This means that the remaining properties on offer will increase in price – and we are already seeing evidence of this. So the time to get the best bargains is right now.
Fact 3 – House Tax Expected To Decrease By 30% From July = More Investor Confidence In Buying
This is another incentive that the government is using to bring investors into the market and also to reduce the financial burden on home owners. This will have the knock-on effect of reducing repossessions (foreclosures) and also promoting more buying – which will push up prices.
Fact 4 – There Is A Rental Craze Across America = Higher Yields Push Up Prices
Just like what is happening in the UK. Falling prices means higher yields. This is mainly due to people scared of buying and so renting instead, leading to higher demand for good quality rental property.
There is currently a rental craze across the USA with some people even renting their spare rooms out at $600 per month, In one such case, a woman rented out her living room at $475 per month.