The housing slump in Detroit has attracted many potential buyers. They see great potential in the city for many reasons. Detroit is the 11th largest metropolis and the heart of the American automotive industry. New industries have made Detroit their home. Even Hollywood has found a home in the city with many production companies headquartered and shooting films in Michigan. With many new programs, advances, and initiatives Detroit is destined for significant rebirth and growth. This in turn will have a domino effect on Detroit’s economy and property values will again increase.

With many homes being repossessed by lenders, homes in Detroit can be purchased for pennies on the dollar. Solid brick homes in great neighborhoods are readily available on the open market. Because these properties are being sold so inexpensively, the potential for positive cash flow is inevitable. Single family home values will also experience long-term capital growth over the course of the next 5 to 10 years. A prospective investor can recoup his initial investment within the first years of owning a property. Property values are low and investors can afford to purchase a fully refurbished, income producing property without financing. Most investors have a savings account, an investment fund or a retirement account and retrieve funds from their reserve. Property taxes in the city on average work out to roughly 3,500 USD annually. After acquisition costs, fees, property taxes, and property management fees ROI’s can range from 11% to 18%.

While many US banks have tightened the reigns on lending on non-primary residential properties, foreign banks are continuing to lend. According to the BBC, “In 2010, buy-to-let (BTL) lending rebounded, with lenders granting 102,400 new BTL loans, 10% more than in the year before. In 2009 the number of new BTL mortgages had fallen by nearly 60% from 2008.” The Detroit real estate market has just about bottomed out. The time to buy is now. Values will only increase from this point. If an investor has done his research and is purchasing a home in a great neighborhood he will surely benefit from his investment.

Detroit is the largest city in the state of Michigan and the seat of Wayne County. Those wanting to invest in this vibrant city but are on a low budget need not look further than Detroit foreclosed homes. Detroit is famous as the world’s foremost automotive centre. Detroit is synonym for the US automotive industry and a centre of musical legacies as proved by its two nicknames-’Motor city’ and ‘Motown’. The city has some excellent water front properties. In 2007, the first portions of the Detroit River Walk were laid consisting of miles of fountains and parks. The new urban development is aimed at increasing tourism to the city. CNN Money Magazine named down town Detroit as the 18th best neighborhood to retire among 30 large metro areas of the nation.

The cultural scene is also alive in Detroit. Live Music has been apart of Detroit’s nightlife since late 1940′s earning it the nickname, ‘Motown’. It has several live music venues. Large concerts are held at venues like DTE Energy Music Theatre. The Detroit Theatre district is the nation’s second largest and is host to Broadway shows. Important music events in the city include Detroit International Jazz Festival. It is also home to the punk rock scene. Modern voices include Eminem, the hip-hop artist. The city is home to museums like Detroit Institute of Arts, Motown historical museum. Other tourist attraction is the Detroit zoo and Anna Scripps Whitcomb conservatory. Detroit is one of 13 American metro areas which are home to professional teams representing the four major sports in North America. Detroit is also venue to many sail boat racing events. It also hosts many WWE events. Detroit foreclosed homes are thus a great opportunity to be part of this action.

Detroit has also immense opportunities for employment. It is home to big three automobile companies-Ford, Chrysler and General Motors. International law firms also are based here making it an important centre for global trade. It is also a centre for engineering jobs. In 2006, there was a spurt in construction jobs due to a $1.3 billion drive of restoration in down town Detroit. Other areas in Detroit include biotechnology, nano technology, and hydrogen fuel cell development and information technology. It is also the largest city in the nation to offer casino resorts. It is also home to many educational institutions like Wayne State University. All this makes investing in Detroit foreclosed homes a sensible idea.