World-renownedmagazine, The Economist has written that homesin the USA are currently selling on average 22% below theprice-to-rent ratio.
Numbers based on detailedhousing statistics from 1975 to 2011 indicatethe fact that property in the USA has a lot of scopefor future capital appreciation for investors who buy while the marketis slow.
Since the country’sproperty crash in 2006, many investors have been interested in US property foreclosures and various buy-to-let properties in theUSA due to the low-entrynature of the market with many investors interested in US property foreclosures at a bargain price.
With mortgages unobtainable for many people due to large requireddeposits and the increasing amount of foreclosed properties,the rental market is experiencing a boom right now in many states where prospects and employemntare picking up like Michigan for example.
Writing with caution, the EconomistMagazine also stated that house prices may take a further stumbleover the next 12-18 months.
If the house prices to dipfor a short time before bouncing back then a lot of investorswould say that this dip time would be the prefect time for peopleseeking a long-term investment to purchase houseswhen they are at the rock bottom prices.
Since the market peak of2007, the value of properties in the USA has decreased on average by 34%.
But we do have positive news for the USA propertymarket, according to the Detroit Free Press, both the median price of propertyand house sales of property in Detroit saw an increase in September due to increased sales activity during thesummer.
The newspaper 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 looking to enter buy-to-let Detroit property now is a great time to start seekingthe right house and with a range of US property foreclosures available at auction many investors are pickingup good bargains.
However most of these foreclosureshouses will require refurbishment. Some specialist companies have made it easier to find and acquire good Detroit property investments and provide completeinvestment packages, supplying houses in desirable areasthat are refurbished and are already rented to long-termtenants meaning instant income for investors.
If you are 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