Well knownmagazine, The Economist has stated that housesin the USA are currently being sold on average 22% below theprice-to-rent ratio.
Numbers based on comprehensivehousing data between 1975 and 2011 highlightthe fact that there is a lot of scopefor future capital appreciation for investors who buy while the marketis slow.
Since the USA’sproperty crash in 2006, a lot of investors have been lookingto purchase US property foreclosures and various buy-to-let properties in theUSA due to the low cost of property with many investors buying US property foreclosures at a low prices.
With mortgages unobtainable for many people due to large requireddeposits and the rising amount of foreclosed properties,the rental market is currently experiencing aboom in many states where prospects and employemntare picking up like Michigan for example.
Writing with caution, the magazine also said that house prices may take a further stumbleover the next year and a half.
If the house prices to dipfor a while before bouncing back then some investorswould suggest that this dip time would be the prefect time for peopleseeking a long-term investment to acquire houseswhen they are at the lowest prices.
Since the market peak of2007, the value of properties in the USA has dropped on average by 34%.
But we do have positive news for the USA propertymarket, according to the Detroit Free Press, both house sales and median prices of property in Detroit saw arise in September due to increased sales activity during thesummer.
The newspaper also reported an 8.2% rise in sales from 4,222to 4,568 in September, with median prices rising 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 experienceda rise with an increase of 8.8% from $40,000 to $43,500.
For investors interestedin buy-to-let Detroit property it is a goodtime right now to start searching forthe right house and with a range of US property foreclosures available at auction a lot of investors are securing good bargains.
However most of these foreclosureshouses will require refurbishment. Some specialist companies have takenthe hassle out of Detroit property investments and offer completeinvestment packages, supplying houses in good neighborhoodsthat 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 call +44 (0) 207 321 5858 or email enquiries@experience-international.co.uk