5 Reasons to Invest in Detroit Real Estate

 5 Reasons to Invest in Detroit Real Estate

 5 Reasons to Invest in Detroit Real Estate

Detroit's economy is booming
First of all, you should know that the Detroit area, which includes 11 counties, is home to more than 300 municipalities and 300,000 companies, including 11 Fortune 500 companies. As Detroit Chambers reported, Detroit is home to a strong technical infrastructure and a worldwide recognized workforce for its skills, expertise and productivity.

But that's not all. Here are some indicators that show Detroit is working well!

The job growth in Detroit is 1.77% year-on-year, with the metro area employing more than 2 million employees.
On the average income of households in Detroit by 3.6% from year to year, while average property values have increased by more than 5% in the past 12 months.
Detroit's unemployment rate fell to 8.9% (as of November 2020), as construction, IT and financial sectors showed the fastest signs of new growth.
The largest employers in Detroit are Ford Motor Col, FCA US LLC, General Motors, University of Michigan, Beaumont Health and the U.S. government.
Major colleges and universities in Detroit include the University of Michigan, Wayne State University and Lawrence Technology.

Detroit Real Estate Market

Detroit real estate investors can find the perfect opportunity to get affordable rental housing in cash and refinance them later. As the Wall Street Journal reported, a lack of credit often prevents local residents from buying a home. This may be one of the reasons why nearly half of Detroit households and tenants are rather than their owners.

The construction of new buildings and properties in Detroit has flourished in recent years. The majority of this construction was in detroit's real estate market, and even more rents. A new report from RentCafe.com urban areas across the country that build most apartments, and while metro Detroit is at the bottom of the list, there is a 175% increase in buildings! Some of the new rentals available include new developments along Riverfront and Lafayette Park, particularly Orleans Landing and DuCharme Place.

Real estate prices in Detroit are low ...
The most striking feature of detroit's average real estate investment is its relatively low price. Over the past 12 months, the average price of real estate in the U.S. real estate market has ranged from $300,000 to $320,000. The average Detroit real estate investment, however, has an average price of $167,923. In fact, it is very common for investors to find real estate in Detroit. Affordable, even in the best areas of the city. In fact, they are all below the city average, 5 are less than $100.00 and 2 is about $54,000.

In addition, the current construction rate is 8.62%, which is higher than about 85% of cities in the United States.

And the demand for rent is just on the rise.
Are you looking to invest in real estate rental in Detroit to improve your cash flow? Head to the Detroit real estate market to find out about residential and commercial real estate. Although rental prices in the city have risen over the past few years, they are still much lower than those of other major cities.

Reasonable prices are the main factor in tenants' decision to move, and jobs come second. This is one of the main reasons why many residents who have previously left the city in search of better prospects and the restoration of their real estate to take advantage of the increased demand for rents.

What about the profit in all this? We have good news for you! Detroit has the second highest rent-to-value ratio in the country, with just over 8.5%. This means that Detroit's investment properties have enormous potential to pay off the initial investment quickly and shift to an influx of profits.

Detroit loves real estate investors

On investment real estate in Detroit is sometimes eligible for a new market tax credit (NMTC) that aims to attract small businesses and development efforts in Detroit. Significantly, the real estate investor is granted tax exemptions equivalent to 39% of real estate investments made in difficult socio-economic areas. There are certain conditions for that, such as a real estate investment of at least $5 million and must remain in the area for at least seven years.

Granted, development plans still have to go through standard planning approval processes, but Detroit welcomes real estate investors with open arms. Since they have successfully completed bankruptcy proceedings, they have taken serious steps to call the type of investments we have already described. Detroit's culture is one in which developers, investors and the city government work well together.