World-renowned magazine, The Economist has stated that houses in the USA are currently selling on average 22% below the price-to-rent ratio.
figures based on comprehensive housing data from 1975 to 2011 indicate the fact that there is a lot of scope for future capital growth for investors who buy while the market is slow.
Since the USA’s property crash in 2006, a lot of investors have been looking to purchase 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 unobtainable for most due to large deposits required and the increasing amount of foreclosed properties, the rental market is currently experiencing a boom in many states where prospects and employemnt are picking up like Michigan for example.
Writing with caution, the Economist Magazine also said that house prices may take a further stumble over the next 12-18 months.
If the house prices to dip for a while before bouncing back then some investors would suggest that this dip time would be the ideal time for those seeking a long-term investment to purchase houses when they are at the rock bottom prices.
Since the market peak of 2007, the value of properties in the USA has decreased on average by 34%.
But it’s not all doom and gloom for the USA property market, according to the Detroit Free Press, both house sales and median prices of Detroit property saw a rise in September due to increased sales activity throughout the summer.
The newspaper also reported an 8.2% rise in sales from 4,222 to 4,568 in September, with median prices increasing by 10% from $68,000 to $74,900 across Metro Detroit. In Wayne County alone, property sales rose by 1.6% from 1,776 to 1,804 in September. Median property sale prices also experienced a rise with an increase of 8.8% from $40,000 to $43,500.
For investors looking to enter buy-to-let property investments in Detroit it is a good time right now to start looking for the right house and with a number of US property foreclosures available at auction a lot of investors are securing good bargains.
However most of the foreclosures houses will need to be refurbished. Some property investment companies have taken the hassle out of Detroit property investments and offer complete investment packages, supplying houses in desirable areas that have been refurbished and are already rented to long-term tenants meaning instant income for investors.
If you’re looking to take advantage of the current below market value prices of properties in the US and specifically US property foreclosures, and property for sale in Michigan then contact Experience International on +44 (0) 207 321 5858 or email enquiries@exprience-international.co.uk.
