Well knownmagazine, The Economist has written that housesin the USA are currently being sold on average 22% below theprice-to-rent ratio.
figures based on detailedhousing statistics from 1975 to 2011 indicatethe fact that there is plenty of roomfor future capital growth for investors who buy while the marketis slow.
Since the country’sproperty crash in 2006, a lot of investors have been interested in US property foreclosures and various buy-to-let properties in market due to the low property prices with many investors seeking US property foreclosures at a bargain price.
With mortgages hard to get for most due to large deposits required and the increasing amount of foreclosed properties,the rental market is currently experiencing aboom in many states where employment and prospectsare picking up like Michigan for example.
Writing with caution, the magazine also stated that house prices may take a further dipover the next year and a half.
If the house prices to dropfor a while before bouncing back then a lot of investorswould suggest that this dip time would be the prefect time for peoplelooking for a long-term investment to acquire houseswhen they are at the lowest prices.
Since the market peak of2007, the value of properties in the USA has decreased 34% onaverage.
But we do have positive news for the USA propertymarket, according to the Detroit Free Press, both house sales and median prices of property in Detroit saw arise in September due to increased sales activity throughout thesummer.
The Detroit Free PressNewspaper also reported an 8.2% increase in sales from 4,222to 4,568 in September, with median prices increasing by 10% from $68,000to $74,900 across Metro Detroit. In Wayne County alone, property sales increasedby 1.6% from 1,776 to 1,804 in September. Median property sale prices also sawa rise with an increase of 8.8% from $40,000 to $43,500.
For investors interestedin buy-to-let Detroit property it is a goodtime right now to start seekingthe right house and with a number of US property foreclosures available at auction a lot of investors are pickingup good bargains.
However most of these foreclosureshouses will need to be refurbished. Some specialist companies have made it easier to find and acquire good Detroit property investments and provide completeinvestment packages, supplying houses in good neighborhoodsthat are refurbished and are already let to long-termtenants meaning instant income for investors.
If you’re looking to take advantage of the currentbelow market value prices of properties in the US and specifically US propertyforeclosures, and property for sale in Michigan then contact ExperienceInternational on +44 (0) 207 321 5858 or email enquiries@experience-international.co.uk