Current property prices in Detroit, although they have been steadily rising in recent years, are still only at about 25% of the average value of similar properties in the United States. These low prices are the main factor behind the high returns achieved in Detroit. Additionally, these affordable prices enable access to a larger number of units, which certainly allows investors to reduce the risk associated with a tenant defaulting on their monthly rent payments.

Detroit has gone through a couple of situations that pushed it to the brink. However, after resolving its bankruptcy for an amount of approximately $18 billion, the city has shown genuine signs of recovery. Important economic actors—led by automotive manufacturers and supported by new investments—have started to invest in Detroit. This investment flow has resulted in sustained recovery over recent years, which has positively impacted its real estate market. While there is still a long way to go, we believe Detroit represents an excellent investment opportunity. The city is making great strides in the right direction after its crisis at the beginning of the 2000s, and as the city recovers, so does its real estate market—making it crucial to invest now, while prices remain low.

Although properties in Detroit have been appreciating at an approximate annual rate of 15%, we estimate there is still room for further price increases. Additionally, the average price of the properties we typically target is currently below the general average for all properties. This leads us to believe there is ample space for sustained appreciation in the coming years.

The ideal structure for these investments is a Limited Liability Company (LLC). An LLC allows us to limit our clients’ asset exposure to litigation or legal claims. Additionally, when selling a property, the tax process is much simpler if the seller is an established company in the USA. Our company has a team of professionals capable of advising you through the entire process—from setting up the LLC to opening the bank account.

Although we are happy to welcome our clients and Tampa is just about a four-hour drive from Miami, the answer is no. You are not required to come to Florida to complete the purchase process. This procedure can be completed entirely online from the comfort of your home or office.

Given the lower property prices, it is reasonable to infer that property taxes will also be low. Indeed, while in South Florida property taxes are equivalent to two or two and a half months of rent, in Detroit they are approximately one month of rent. This represents noticeable savings, which at these levels of profitability can be a significant factor to consider.

The United States is—and will continue to be—the world’s leading economic power and has the largest real estate market. The large size of the real estate market makes it robust and less vulnerable to outside influences. Despite all the challenges during 2020, 6.5 million* properties were traded on the secondary market. For 2021, it was projected that 7.1 million* units would be sold. This volume of transactions ensures economic stability, regardless of manipulation or outside influence. Legal framework: Another important trait of the American real estate market is its legal framework. There are clear rules that define relationships between landlords and tenants, with laws and procedures to act when either party fails to fulfill their obligations. Solid and stable economy: Thanks to its strong and stable economy, annual inflation remains below 10%, allowing banks to maintain passive interest rates close to 1.00% per year. All these factors make the American real estate market an excellent opportunity for foreign investors, especially in countries where investment conditions are not as favorable.