More Good News For Metro Detroit Property Investors

The real estate market in the metropolitan Detroit area is the worst in the nation!

According to a report from California-based data company Clear Capital, Detroit was the worst-performing metro with a 10.7 percent decline from last quarter and 19.6 percent rise in prices from last year. Nearly 50 percent of the sales were homes taken back by lenders.

What does all of this mean for investors? It means that there are plenty of deals to be had here in metro Detroit.

Use the “bad” economy to your advantage when negotiating with the seller. It is a numbers game. Always be tight with your money, throw nickels around like their manhole covers! The next deal is always one contact away.

Why You Should Be Investing In Detroit Real Estate!

Detroit investment property choices are larger than ever before. You can choose from many different types of property. The initial investment costs are very minimal. Due to the condition of the housing market in the Detroit area, there is opportunity to build a significant nest egg, even if you are not a professional investor. You must be willing to learn about the ins and outs of your Detroit investment area.

You should determine the condition of the property that you are considering so that you know it will provide the potential to reach your goals. The rental or market rates in the area are important when deciding on a piece of property. You need to know that you can find good renters and that property management can be accomplished. Learning all you can about Detroit property investment before getting too committed financially is important

The housing market today in Detroit is depressed. This makes for many investment opportunities. Some of the factors that are holding the market prices down include rising foreclosures, tax deed sales and increased number of sellers attempting to get rid of property that they can’t afford.

In MOST instances, homes and commercial properties are selling for ridiculously low prices. Housing auctions held by banks or at sheriff’s sales occur frequently both at local locations and as online auctions. You can purchase commercial buildings as well as residential and special use buildings at these auctions. You just need to do your research to find out as much as possible about the property, the area, and the type of deed that is being conveyed upon sale.

When you hire a property management company, they do the middle of the night calls. They take care of the plumbers, and any other management related issues you want. This is particularly helpful if you don’t live close to the property.

Whether you plan to rent the property or to resell it, finding the right people is critical in your ability to earn revenue from the property. You can turn this task over to a property management company. The company will do the screening and rent collection for you if your contract with them is set up in that fashion. The management company also can have the responsibility of keeping the property in good physical condition.

The type of Detroit investment property that you purchase will be dependent upon your investment goals. Are you looking for a quick return on investment? Do you prefer a long term capital growth? The answers to these questions can lead you to the correct choice of property. Be sure to talk to a tax accountant or attorney about the best way to set up your real estate investment business.

For help with finding your Detroit investment property check out these Detroit property experts.

Could it be so…Detroit – The Sam’s Club of cities?

In a fine example of turning lemons into lemonade, Detroit — once the poster city for high
labor, tax and operating costs — is getting noticed as a low-cost place to do business.

“Detroit is now competitive with many of the offshore locations,” says Timothy Bryan, chairman of Galaxe Solutions, a New Jersey software firm that plans to bring 500 jobs to the 1001 Woodward Building over five years. “Companies are looking to bring back jobs from overseas, and Detroit is in the best position of any city in the United States to compete for that investment.”

It’s about supply and demand. Vacancy rates in downtown buildings are at 70 percent. That creates a “make-me-an-offer” environment, driving down rents. Class A office space is listed in the $18 to $19 per square foot range, with many deals coming in much lower. That’s half the going rate in Chicago, and about the lowest in the country.

Detroit has the potential to become a high-tech hub — Strategic Staffing Solutions is adding hundreds of new IT jobs to the Penobscot Building — with smarter government policies.

If the city — the whole state, for that matter — were able to market itself as the low-cost locale for land, labor and tax and regulatory burden, it could parlay that into a jobs boom, and the start of a comeback. The marketplace is taking care of land and labor costs. Now we have to get the policy right. N. Finley

Detroit – A place of opportunity and creativity

Surely, we are all familiar with Detroit’s economic problems and urban decay – it has been the butt of jokes for generations and after the onslaught of this most recent recession, the images and stories of just how it is in one of America’s former industrial powerhouses have been nothing short of astonishing. With an unemployment rate in Michigan at about 15% – 5% above the national average – and a housing market that has tanked, the area has become victim to all sorts of real estate speculation, as some homes cost as low as $500.

The end result is that a great deal of Detroit land is embarrassingly cheap and thus easily repurposed. And this is potentially good news. As such, some bright minds have advocated remaking the city entirely, in addition to rethinking the design and function of cities in general. The city and its constituents have been wary of putting so much public space in the hands of a single, corporate entity, rather than in the control of the community.

Perhaps the most exciting idea has been the serious proposal of expanded and extensive urban farming. The idea is controversial, as it would require converting large amounts of public and private land (currently there is over 40 miles of vacant city land) being converted to essentially farmland, graded, raised and laid out in a manner to accommodate urban terrains.

While it is not wise to get overconfident in the hopes for these grand urban farming ventures in the face of such economic odds, these projects and ideas could potentially change how we think about not only our urban landscapes, but also our rural ones. One need only consider the immediate paradox that as we continue to industrialize the countryside and its crops, the cities would have access to fresh, local produce. Perhaps, in some strange irony of historical significance, from the ashes of the heart of American industrialism will come a return to the farm and the land.