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4 reasons detroit should be at the top of your real estate portfolio


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This is a great time for real estate investing in South Florida. You need to make your turnkey investment in South Florida. Call us today 248.268.8300.

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4 reasons detroit should be at the top of your real estate portfolio

  1. 1. 4 Reasons Detroit Should Be at the Top of Your Real Estate Portfolio When most people hear the words “Detroit,” “real estate” and “economy” together, they often think of the difficult path the city was set on after the 2008 financial crisis. But what they may not know is that many pockets of the Detroit area are thriving, from job growth to the arts to an influx of new residents. In a portfolio, Detroit real estate investing is actually a “must.” Find out why below. Detroit’s economy is on the rise; even more stable than before the financial crisis. As you know, the Detroit real estate market was decimated by and during the 2009-’10 foreclosure crisis. The housing stock in the city of Detroit was built for a population of two million people while today only 700,000 people live in the city proper. Because of this, the housing inventory has suffered mass vacancies and abandonment. Still, Detroit has begun to bounce back, with the economy and real estate markets even more stable now than before the 2008 market crash. Property experts and outside observers alike expect this growth to continue. The value of the property investment market has been consistently increasing in Detroit’s suburbs. There are
  2. 2. pockets of density and stability, which have been the focus of federal, state and local government investment. These will continue to grow and begin to thrive as other less populated areas in the city are cleared and repurposed. This is all happening now. If one knows where to buy and what to pay, not only can a purchase in Detroit be beneficial from a cashflow perspective; it can also be beneficial over time from a capital growth perspective. With Detroit real estate, you get more bang for your buck. There has never been a better time to invest in Detroit. Compared to other U.S. property investment hotspots, Detroit is currently delivering some of the highest returns on investment (ROI) available in the market. Specifically, single-family homes in the area yield a higher-than- average return than other markets. This is because the prices of homes can be bought below- market, while the rental rates remain high as long as owners provide a quality product. This ROI is very apparent in capitalization rates. Turnkey investments in South Florida (properties ready for immediate use) are an excellent option for quick returns.
  3. 3. Job growth = housing demand. Detroit is a great city to invest in because of its high rise in the real estate market. Ford recently announced they will invest over $700 million in their manufacturing plant in Flat Rock, MI. In addition, Chrysler will invest $1 billion into their Ohio and Michigan plants. Both corporations will add over 1,000 jobs combined. This movement of new development and businesses in Detroit is also led by key stakeholders like Dan Gilbert, founder of Quicken Loans, and the Illitch family, owners of Little Caesars Pizza, the Detroit Red Wings, and the Detroit Tigers. Detroit was also recently ranked the best city in the country for 3D printing and CAD designers. Job growth in Detroit has implications beyond the various industries above, extending to commercial real estate. This has a ripple effect on the local economy; not just on industrial properties, but also other types of real estate. More people are attracted to living in areas where there is job growth, and with job growth the need for multi-family (or residential) housing increases. Job creators like these have caused Detroit and the State of Michigan to see a significant drop in their respective unemployment rates over the last 5 years, bringing them lower than even the national average. Arts and culture in Detroit are drawing increasing visitors and residents. Detroit has become one of the top places to visit in the U.S. because of all the great attractions that it has to offer. The downtown area is constantly being updated and restored. The greater midtown area, just north of Detroit’s central business district, has many cultural, educational, medical and service institutions including Detroit Institute of Arts, Detroit Public Library, C. H.
  4. 4. Wright Museum of African American History, Wayne State University, College for Creative Studies, Detroit Medical Center, Detroit Symphony Orchestra Hall, Henry Ford Health Services, Tech Town and Masonic Temple, to name just a few. Midtown now has a growing residential base within its many historic neighborhoods. It is one of the fastest developing areas in Detroit with many opportunities for rehabilitation, restoration and new construction. Conclusion: investing in Detroit is a no-brainer. New investors are being drawn to Detroit due to its improving financial outlook post-bankruptcy, its redeveloping urban landscape and its selection of properties with relatively higher yields compared with other markets of its size. Now is the time to put Detroit at the top of your real estate portfolio! Business Name: Portfolio Builders, LLC Address: 640 N. Old Woodward, Birmingham, MI, 48009 Business ID: Phon No. : 248-268-8300