invest in detroit

Real estate can represent a major part of your heritage.
it Is wise to diversify it in a mythic city in full expansion.

The economic rebirth of Detroit

In February 2018, the prestigious New York Times headlined: "Detroit: The Most Exciting City in America?" A title that says a lot about the new attractiveness of "Motown", the capital of the American automobile. According to the Office of Labor Statistics figures, the city of Detroit's unemployment rate has dropped from 28% to 5% in less than a decade. The twelve billionaires who launched the "made in Detroit", after the bankruptcy of 2013, are about to succeed their bet.

In 2030, Detroit will rank among the 20 largest US cities. The Detroit metropolitan area will have an interconnected transportation system that will complement and confirm the city's role as a global hub for transportation, distribution and logistics. With its ambitious support program for businesses, entrepreneurship and start-ups, the city will double the number of active jobs. In 2030, Detroit will have radically changed: vast program of demolitions and reconstructions, creation of green neighborhoods, rehabilitation of historic structures, open community spaces …

Dan Gilbert, a leading credit broker on the net, owns some twenty buildings with more than 10,000 employees in the city center. Ilich, the king of pizza, financed the 20,000-seat Little Arena that hosts hokey concerts and matches in the city center. Moroun, owner of the only bridge connecting Canada to the United States by Detroit, has laid the foundation stone of a new and even larger building. Big companies are not left out. Google has set up the Google Car headquarters in Novi, Ford is developing the autonomous electric vehicle at its Flat Rock factory and plans to create 5,000 jobs.

A GREAT ENVIRONMENT FOR RENTAL INVESTMENT

  • A price lower than the construction’s cost.
  • Less than 600$ per square meter for a single home
  • Meanwhile the rent’s amount has slightly changed since the crisis, the profitability performance is between 8% and 10%, or more depending on the neighborhood.

for example, a 3 bedroom house rented between $750 and $850 would see its price multiplied by 2.5 within 5 years.

References...

  • $ 185 million investment in the modernization of public lighting and 55,000 new l.e.d street lights throughout the city.
  • 80 new buses financed by the federal government, which allows for the first time in 20 years, to respect the posted lines.
  • 7,000 houses demolished at a rate of 100 to 150 houses demolished by the city each week in 2015. ($ 16,500 cost for the demolition of a house)
  • By 2030, detroit will have a stabilized population of between 800,000 and 900,000 residents.
  • Since 2014, garbage collection has been privatized and reorganized to solve the problem of illegally dumped garbage (an average of 650 tonnes of litter).
  • Decline in crime of 7% in 2015, compared to 2014 and -11% compared to 2013.
  • The city has launched 4 new mobile applications to help the inhabitants in their daily lives and to improve the communication of services for public safety (smartphones, cameras, + 2000 computers replaced in administrations) .

DETROIT, A CLEAR VISION FOR THE FUTURE

By 2030, Detroit will have a stabilized population of between 800 and 900,000 residents, making it one of the 20 largest US cities. The Detroit metropolitan area will have an interconnected transportation system that will complement and confirm the city's role as a global hub for transportation, distribution and logistics. With its ambitious support program for businesses, entrepreneurship and start-ups, the city will double the number of active jobs. In 2030, Detroit will have radically changed: vast program of demolitions and reconstructions, creation of green neighborhoods, rehabilitation of historic structures, open community spaces…

A great environment for rental investment

Banks that are shedding their real estate assets seized after the subprime crisis of 2008 and a very strong rental demand, are the two drivers of a virtuous circle that many French investors can benefit greatly. The amount of rents having meanwhile little changed since the crisis, potential profitability performances are between 8 and 10%, or more depending on the neighborhoods.

What are the best types of houses to buy?

LThe best homes are where tenants want to live, where they feel safe. We rent most of the time to families with several children, which is why we recommend buying homes with at least 3-4 bedrooms. When reselling, the size of the house is also an important factor for families looking to move in. It is preferable to position oneself on the biggest market which is in this case that of the families of four people minimum.

Is it easy to fire a tenant?

In the United States, the law favors the owner, to the detriment of the tenant. An eviction procedure takes an average of one month. We are using a specialized agent who will go through the court and the sheriff's department to formalize the eviction. The average cost is $ 700.

however, some points must not be negliged.

To make a good investment is, first and foremost, to have an excellent knowledge of the local market. The other fundamental point is its management. Work, rental, maintenance and accounting take time and must be done on site, to ensure real profitability. Investing in real estate means being prepared to face a variety of expenses to keep the property in good operating condition over the years.