Probably one of the most underrated markets in the US, Detroit has shown promise throughout the years despite being hit hard during the recession. Many fresh and young investors have started to flock into the Motor City hoping to make the most out of their investments. If you don’t want to get left behind, Strategy Properties is your trustworthy company specializing in the Detroit real estate investments. Here’s why we’re the best bet you can have for your investment career.
THE DARK AGES
Detroit has been through near-fatal blows leading to a total resurgence of its economy. The “Big 3” of America’s largest automakers, namely General Motors, Ford, and Chrysler, will forever be linked to the city’s economy. These companies were on the brink of collapse in 2009 when General Motors filed for bankruptcy and received federal dollars during its restructuring. This led the said companies to cut jobs as well as pensions in a desperate effort to stay afloat. Thousands of Detroit residents who depended on these automakers were left with their families in poverty. The city experienced increased crime rates and people abandoning their homes.
To add salt to the wound, then came the housing crisis. Detroit was one of the cities with the highest number of foreclosed homes – some of these were being sold for as little as $100. Many of these properties proved to be too much of a hassle despite the cheap price for investors. Majority of the properties were located in crime-ridden areas and the cost to renovate or bring it back up to code was just too expensive. Finding good investment opportunities was close to impossible.
A MUCH NEEDED COMEBACK
A sudden peak in the curve around 2017 jumped median sale prices for homes to almost 50% and has been on the rise ever since. The reason for the increase seemed to be a low inventory of viable properties coupled with an increase in demand. As of now, Detroit’s impressive property appreciation show no signs of slowing down. Unemployment rate has gone down compared with the introduction of tech giants such as Microsoft and Google opening up local offices for Detroit’s residents. The positive impact of the economic shift allowed homeowners to stay in their homes. With that said, here we are now and there has never been a better time to invest in Detroit.
Here’s a few of the many reasons why Detroit investment properties are worth looking into NOW.
When looking into properties for sale, the first thing that you’ll probably notice is it’s price tag. A 2018 study shows that housing prices were 6% lower than the national average. This means if you plan on investing in rental properties, prospective tenants are more easily attracted to your property. If you want to turn a small initial investment into some serious cash flow, Detroit is your best bet.
Detroit can fetch you high profitability in the long term when it comes to investing in real estate specifically for rental properties. There has been a rapid job growth and a reasonable influx in the city’s population. Large corporations have been making a presence in the city and along with it comes the need for more employees. As you might’ve guessed by now, they’ll need a place to stay in so there is a high demand for rental properties scattered throughout the Metro area.
Due to the affordable prices, more people are able to afford the rent or sale value of these properties. Due to its unique culture, Detroit has been a hub stop for millenials seeking out-of-the-box careers which is another reason why investors are opting more and more for residential investment properties. These properties have great potential to pay off the initial investment quickly and return a sizable profit in a short amount of time.
The city’s annual appreciation rate of 1.26% is quite impressive if you consider its slow and steady rise after the recession. Rental properties reached as high as 8.62% increase in 2018 compared to other cities in the US.
If you plan on investing in Detroit, here are some of the notable neighborhoods that you could check out and we’re proud to inform you that we’ve already done the hard work for you if you want to invest and grow with us! Keep in mind that the national home value runs at $184,700 while the national rent is at $949.
Median Home Value: $75,028
Median Rent: $1,008
Grandmont has a population of 2,809. The neighborhood offers an urban feel and 75% of residents own their homes while 25% are renting.
Median Home Value: $72,873
Median Rent: $902
Rosedale has a population of 5,933 and is mostly urbanized. Residents who own their property are at 80% outnumbering those who rent who are ot 20%
Median Home Value: $21,292
Median Rent: $853
Warrendale has a booming population of 18,405 with an urban feel. The residents in this neighborhood are almost equally divided where 59% own the property and 41% rent
Median Home Value: $57,324
Median Rent: $428
Aviation Sub has a population of 4,150 which mostly feels like an urbanized neighborhood. Property owners are at 77% while those who rent are at 23%
Median Home Value: $62,136
Median Rent: $637
Bagley has a population of 11,971. It offers an urban feel where residents who own the property are at 68% while those who rent are at 32%
The secret to ensuring success in your investments is choosing the right partner for it. You’re sure to catch lucrative deals in the city – and it shows no signs of slowing down. Strategy Properties has already proven itself more times than you can count and we’re confident to say we know the Detroit real estate market like the back of our hand. Contact us now at (734) 224-5454 or email us at firstname.lastname@example.org to learn more.