The detroit dream
Property in Detroit, USA, has been described as a ‘property investors dream' by Experience International property agency...
Detroit, a former hub for America's automobile industry, has been badly affected by the US economic downturn and property foreclosures, and the city now has a number of homes at highly attractive prices.
Detroit's property market now appears to be stabilising with the support of the Department of Housing and Urban Development scheme (HUD), plus a collaboration of city officials, business people, politicians and property investors.
President Barack Obama has himself pledged to support the regeneration of Detroit in the American
Recovery and Reinvestment Act 2009. Property investors can benefit from an
ethical investment that recycles houses, turning foreclosed and uninhabitable properties
back into homes for the employed, low-income sector. And with a waiting list of
over 9,000 people, there is no shortage o residential demand.
But how does the HUD programme work? Well crucially the HUD and Housing Choice
Vouchers (HCV) programme has a 'one strike policy', unlike the UK and other parts of Europe
where unruly tenants get re-housed, this does not happen under this scheme,
which is a huge attraction for investors. Tenants that are evicted from the HUD
scheme lose any future right to a HUD scheme USA home anywhere in the country
thereby securing the investment homes.
Through HUD the Government pays the tenant's per centage of the rent,
normally 80-100per cent, directly to the owner's management company so
investors are not reliant on collecting rents from the tenants personally.
It's been reported that the City of Detroit
currently has a waiting list of over 9,200 pre-approved families with HCV who
are currently in unsuitable, emergency or temporary accommodation.
Experience International, who selects properties through their local business partnerships, is currently offering a range of homes in Detroit from as little as $1 (70p).
Source: www.homesoverseas.co.uk/news