Why Invest Now in Detroit?

Our Axis Smart Guide to the USA has a detailed section illustrating why the time is right to invest in the USA right now. Download the USA Smart Guide.

The comments here are restricted to those specific points that are related to Detroit, above and beyond the generally positive investment environment across the USA. Detroit foreeclosure

Mortgage lenders in the USA are currently foreclosing on thousands of properties every month due to the difficult financial climate, the sub-prime lending crisis and the recession.

Our turnkey investment package offers you the opportunity to take advantage of buying these foreclosure homes at large discounts of typically 40%-60% below current market value. Our foreclosure properties are sourced directly from mortgage lenders and banks. The sourcing team typically makes offers on around 100 properties a week, but because of the strict purchase criteria and the need to ensure large profits for investors, only succeeds in securing between 2 and 20 a week.

Detroit Fist Monument We have teamed up with Detroit's department of Housing and Urban Development (HUD) to 'recycle' these foreclosure homes, by completely renovating them and providing much needed housing for families approved for the government backed rental scheme.

This is a win-win situation for everyone involved:

The bank / lender removes a property from their balance sheet
The investor benefits from an investment with large amounts of equity and high monthly returns
An American family is able to rent a property through a government backed scheme
The City of Detroit ensures that another property is brought back into use and that city taxes are contributed

Read this blog article A Win-Win Investment In Detroit - The City Of Champions

Choose Axis Property Investment As Your Investment Partner

We offer a 'full cycle, turnkey program', from property acquisition to tenanting and management. We believe this is unique in the market.

In the USA, our partners:

Source the property
Manage the refurbishment
Get City Hall to reassess the property tax
Source the tenant
Deal with all HUD and legal issues
Set up a US Bank account for you
Assist with required registrations for tax etc
Continue to monitor the tenant and your property pro-actively throughout your ownership.

In addition to this our Property Management partners:

Collect rent
Pay rent directly to your account
Deal with all bills
Deal with all maintenance issues
Deal with insurance and insurance issues
Deal with the city for any property tax issues
Organise the tenant so they can buy the property from you
Organise the marketing for resale or re-renting in the future.

Axis and our partners have offices in the UK and the USA. You are welcome to visit, by arrangement, at your convenience.

Cash Investors Only

At the present time Detroit, like much of the USA, is for cash investors only. Mortgage funding for overseas investors is mostly non-existent, although we expect this to change in the next 12-36 months. Dollars

We anticipate a situation where investors who buy now will be able to refinance (if they wish) in around 24-36 months at up to 70% of LTV and pull out most, maybe all, of their capital. This would leave you with a 'No Cost' asset that still produces a net income. That's a dream scenario for investors.

For investors with significant cash reserves refinancing may not be required. These investors will benefit from a net return of c.15% pa now, growing over time as rentals rates increase. There are few investments that can deliver this level of return on capital, combined with a capital growth recovery play.

The lack of property finance underscores the value of the opportunity. Banks and other finance companies have foreclosed (repossessed) many properties and the only way they can recover their money is by selling cheap to investors. That's us!

As mortgage finance comes back to the USA market, which it will, and as the amount of foreclosed property continues to fall, as it will, then property prices will inevitably rise. This is both good and bad for the investor.

Good, because investors who have purchased NOW will have locked in huge rental yields and future capital profits. Bad for investors who delay, because they will find that rental yields and capital profits start to fall as prices rise.

The clear message - 'make hay whilst the sun shines'. Don't wait. The time to invest for maximum returns in Detroit is NOW.