What Does Detroit Have to Offer?

The Axis investment proposition in Detroit offers investors the opportunity to benefit from the purchase of foreclosure (repossessed) property at discounts of 40-60% below current market values.

Property Investment in Detroit 1 Our partners in Detroit have access to many foreclosure properties which are sourced directly from mortgage lenders and banks. Investors benefit from an end-to-end process that involves complete renovation. The property is then tenanted by (primarily) families approved for government backed rental programme that are administered by Detroit's department of Housing and Urban Development (HUD). The specific program is called Section Eight.

There is a large waiting list of approved tenants and a shortage of suitable property, so our program has the ethical position of providing newly refurbished property for disadvantaged families.

Typically the homes have been sold within the past five years for upwards of $120,000. T Property Investment in Detroit 2 he previous owners defaulted and the property was foreclosed, leaving the mortgage lenders with substantial amounts owing. Our properties are sold to investors with clear title (covered by title insurance), with no mortgage debts or liens attached to the property.

Our view of the market in Detroit is that the enormous waiting list for S8 tenancies (about 9,000 families) demonstrates a lack of suitable and affordable housing. Detroit demonstrates increasing rental demand and is a great place to invest for substantial short and long term profits.

Maximum Income

The Detroit investment opportunity falls into the group of investments that Axis calls "Maximum Income". By this we mean you can achieve a minimum of 12% NET annual rental yield before tax, but after all costs, management fees and so on.

In Detroit we deliver exceptional rental yields of 12%-16% after costs. Detroit also offers the added upside of a recovery play as increasing demand is reflected in capital growth.

The rental return is immediate. Our view is that the recovery play is medium term, say 5-10 years.

Detroit is particularly suitable for clients requiring high income starting immediately, with the prospect of good capital growth in the medium term.

In our opinion, Detroit is not suitable for clients looking for quick returns and short term capital growth.