If you are looking to purchase real estate—whether for personal use or financial gain—Detroit is the place you are looking for. The city has undergone a widespread rejuvenation in recent years, attracting new businesses, developing hearty employment opportunities, and bringing in younger demographics by the pound. While the real estate market in Detroit is still on the rise, median prices in the Motor City are drastically below regional and national averages, making purchasing property in the area a steal.
Detroit’s Median Pricing is a Win – Detroit Real Estate Investing
When it comes to the median prices, you can rest assured you’ll be getting below the fair market price when purchasing property in Detroit. In Michigan alone, the median cost for a four bedroom, two bath home runs in the upper $260,000 range. When you look on a national scope, the median price for the same home rises to $320,000. However, when you look at a property of similar size in the Metro Detroit area, that price drops to a staggering $64,000 making Detroit Real Estate Investing perfect.
Detroit’s median pricing is currently on the move, though. In fact, from 2015 to 2016 the median price has jumped an impressive 9.2%. This is great news for investors as it is showing a steady increase in property value, meaning a greater return on investment for anyone getting in on the ground floor of the market. Detroit Real Estate Investing
Rental Demand Skyrockets
For those looking to reap some financial gains from investing in real estate, Detroit Real Estate Investing is definitely the place to start. With the constant developments occurring within the city, Detroit has seen an influx of young professionals and entrepreneurs migrating to the area. Between a heavy focus on their careers and burgeoning student debt, this younger generation has favored renting over purchasing homes, causing a drastic shift in the ratio of renters to home owners. With rental demand so high, property owners have a steady stream of high-quality tenants, ensuring the property rarely sits empty.
The Financially Sound Choice
During the housing market crash, Detroit was hit exceptionally hard and appeared to take the longest to recover when compared to the national market. In an effort to invigorate the city, many financial incentives were put into place to help create a draw to the area for investors and inhabitants alike.
The New Market Tax Credit was enacted for large-scale investors, reaching rates up to 40% in specific areas of the city. Another program put into place to encourage real estate investments is the Detroit Home Mortgage. Put into action in 2016, the program is predicted to grant over 1,000 mortgages to consumers with a steady income and a 640+ FICO credit score.
Market for Investors
As Detroit’s market value falls below national average, some consumers have struggled to receive traditional bank mortgages due to the gap. This program will close the gap, with a pool of over $75 million donated by large Detroit-based companies, such as the Ford and Kresge Foundations. The goal of the Detroit Home Mortgage program is to help raise the average property rate across the Metro area.
Regardless of why you are looking to purchase real estate, Detroit is clearly the place to do so. With an energized, determined demographic, high employment rates, and low entry costs, investing in Detroit properties is the smart way to go.