Property
"American Property for a FRACTION of true cost. Property prices haven’t just declined in certain places in America, they’ve collapsed. And right now they are at rock bottom. In fact, like all boom and busts, they’ve overshot and are at frankly silly levels. So low, that we just can’t get our head around how cheap the price is. Simply speaking, it’s now the best value property in the World as the US government has subsidised your investment! Even though it’s a great market for bargains at present, selecting the right property is still very important. That’s where our work and expertise pays off. We look at hundreds of properties and only offer about 1 in 20. Like this excellent property, in the sought after East English Village area, next to Grosse Pointe. The property is sold fully renovated and with a tenant in place included in the price. Somerset Avenue, Detroit (Zip 48224) = 38,500 USD Specifications… 3 Bed, 1 Bath Detached Property in very good areaSolid Brick freehold propertyHouse size = 107m2Built in 19363 Bedrooms, Living - Dining room, Kitchen, 1 BathroomFull Size basementGardens to front and rearDetached Double garage to rearYearly Property Tax = 3000 USDApprox rental return = 750 USD pcm This is an ideal location for steady rental and price rebound. It’s an excellent middle class residential area, with easy access to the city centres. The property is close to Kingswood Hospital and all amenities are close by. The neighbourhood is very good with responsible home owner occupiers. The property is currently under-going renovation and will be renovated to a high standard including a new roof and full cosmetic improvement. There will also be a tenant placed in the property before the sale is completed and before the final instalment on the property is expected to be paid. Prices are already rising… From research, the bank valuation on this property would be between 70-90K USD and it was sold in November 2006 for 105,000 USD before priced peaked in mid 2007. The property has had quite a bit of renovation done over the last few years but has been vacant for a short period so will be fully renovated. The price will be 38,500 USD (approximately £23,990 / 26,050 Euros / 42,450 AUD). Sold with a tenant and fully refurbished, the property will need no improvement from the new owner. You will see from the photos that the property is generally in good condition but the photos above are before renovation. A blog will be posted on our website shortly which will continuously update the renovation progress. The property will be finished to a high standard and will need to pass local council checks for a Section 8 tenant to be placed into the property, the cost of this will be covered by the agent. The Maths US060 - Somerset Avenue USD Purchase Cost inc renovation 38,500.00 ITIN & Notary Fee 700.00 Property Tax (due in Dec 2009) 3,000.00 Rental Management Fee (10% of income) 900.00 Income Tax on Rent 2,349.00 Total Costs 45,449.00 Rental Return (year) 9,000.00 Net Return (after costs) 19.8% 19.8% return is unheard of in a “normal” market. A normal buy to let property would normally yield 4-6%! On-going annual profit would be around 2,751 USD per year, not to mention the huge capital gains that you can expect to experience as the US economy rebounds, which has already started in the Michigan area. From April 2009 prices have been trending upwards. Good rental The property is in a popular rental location and a very sought after area. The property will be rented for approx 750 USD pcm (approx 24% gross return per year) Ownership Note: Property taxes are already Paid (up until December) and included in price. Taxes are very reasonable on this property and will be around 2,000 USD per year and we expect these to fall next year. Buying process One of the great things about buying in America, is the simple buying process from anywhere in the world. A preliminary contract will be sent to you to sign and then once the balance is paid you will receive title by means of a deed transfer and the property will be registered in your name locally. Total buying cost is only $500. There are no hidden extras or closing costs. The deposit is non refundable so please ensure you are serious about buying before going ahead. Summary This a clear opportunity to buy at the bottom of a property market and reap the benefits as the market continues to recover which is already apparent. With this property, there is no need to worry about getting renovation done or finding a tenant. This property is excellent value and will provide you with a unique profit opportunity. Providing tremendous upside in capital gain, in addition to suburban rental demand. Needless to say, there are many many investors who would snap up such a bargain, so don’t delay! Once you have rented the property out for a couple of years, why not mortgage it? Credit is available in America, as long as you have good security in your property, credit history of over a year in the US, and tax returns filed for 2 years. As you are buying well below market rate, it’s likely you will recoup your money. Even take cash out after a couple of years! So owning a good property at no cost to yourself! "