The Concept

State of the property market in the USA

In recent years, American property prices have fallen by up to 70%. This is primarily due to the American bank system which dictates that people who are unable to make their mortgage repayments are required to forfeit their house. The bank hence gains ownership of the property and any remaining debts are waived. In a declining market, numerous property owners with a residual debt exceeding the current market value of their house choose to hand over their property to the bank. This has led to a chain reaction as banks are now selling these houses to the highest bidder.

This chain reaction means that property prices have fallen, but rental prices have remained stable. The increase in property rental prices is expected to move into double figures in the years ahead! And the supply of tenants is high, as after all, those forced to leave their houses are required to rent a property. Demand for housing has therefore intensified while the economic crisis and current property prices mean that house construction projects have been put on hold!

As a result, it is currently possible to purchase a property for less than half of the construction costs, INCLUDING A TENANT already secured and a net return that is usually between 10% and 15%. In addition, the expectation is that property prices will rise in the years ahead. As long as it costs less to purchase an existing property than to build a new one, new houses are not likely to be built.

But then why do Americans rent a house when purchasing a house is actually cheaper?

The answer lies in the fact that homeowners who forfeit their house are excluded from being granted a mortgage for 3 to 5 years thereafter. In addition, an extremely limited number of mortgages are currently being granted until the supply of foreclosures has been exhausted. This means that the rental market will remain extremely strong until banks are once again prepared to grant loans and potential house-buyers have built up their savings. Property prices will subsequently rise exponentially. The ideal time to get involved!

Why Detroit

You can often buy renovated and already rented houses for $ 35.000 (often government tenants). Although various other cities in America have been hit hard by the recession, we strongly believe that Detroit is one of the best places to invest in due to the low price level and high rent return. In addition to the fact that the car industry has recovered significantly, Detroit has also diversified its economy as a result of which the future prospects are promising.

– Rental market is stable.
– There are over 8000 families (so-called section 8), who need a house that is simply not available.
– In various important press releases, Detroit is mentioned as the best investment. (highest return, lowest initial purchase amount)
– With the right partner, you can achieve 10 to 15% rent return in a solid way.
– Driven by the recovery of the car industry and government injections, Detroit offers a fantastic prospect for investors.
– Detroit has the lowest home owner rate compared to the 20 other largest cities. This offers a great renters perspective.
– The credit crisis necessitates people to rent until they are eligible for a mortgage again. (in general 5 years)

Investor profile

Would you like to retain complete control over your investment, while still being able to rely on the dedicated service offered by our team on location with regard to the letting and maintenance of your property? If so, this investment is an ideal opportunity for you.

The main points:

*Extremely low property prices.
*Extremely high returns.
*Ever-increasing supply of tenants (as a result of migration, evictions and natural population growth).
*Hardly any new construction planned.
*Huge increase in property prices expected in the long term.
*Investment via the notary and management of rental and maintenance arranged locally (all costs are included in the calculation of your return).


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