FROM THE STREET ABOUT WALL STREET! DOES ANYONE REALLY HAVE AN ANSWER?
Detroit Gets ~$200 Million from State of Michigan
During the week of June 23rd, 2014, Michigan Governor Rick Snyder signed a series of bills that vouches $195 million to Detroit. This large amount of money will be a great contribution to getting the city out of bankruptcy. The bill was signed at the 122-year-old Detroit's Globe Trading Co. building that was once an auto manufacturing facility.
There are plans to revitalize the Globe Trading Co. building, which has been vacant for 20 years. After a $12.8 million investment from the State of Michigan, the building was converted into a the riverside park's recreation center (William G. Milliken State Park)
The $195 million that will be given to Detroit comes with its own set of rules to ensure its effectiveness and expenditure. According to USA Today, one of the nation's leading newspapers, "a nine-member commission will oversee the city's finances, budgets and contracts for at least 13 years and set the level of contributions made to city employees' retirement and health care plans."
Detroit's bankruptcy has come a long way. In the last several months, many different businesses, organizations, and charities have contributed to Detroit's comeback in all different aspects. The nations largest bank (J.P. Morgan Chase) recently invested $100 million. The three Detroit-based automakers have collectively invested a large sum of money into the city's revitalization, creating jobs, upgrading facilities, and increasing Detroit's revenues. On the residential scales,
Chrysler Invests in Detroit metro: $63M to boost production at local stamping plant
A local Chrysler stamping plant is looking to expand its capacity by up to ~3.6 million parts a year. Mauri Pino, Chrysler’s VP of manufacturing, stated that their assembly plants’ production “has nearly tripled in the past five years” and this expansion will cost Chrysler 63 million U.S. dollars. The particular plant employs about 2,000 and has been operating for 65 years!
This is yet another investment that the automotive industry of the Motor City is making in Detroit. Chrysler, headquartered in suburban Detroit, is a global automotive company that is part of the international holding company ‘Fiat Chrysler Automobiles, NV’. As of December 2012, Chrysler Group LLC employed 65,535 employees (Source: SECURITIES AND EXCHANGE COMMISSION Form 10-K)
Local, national, and global companies continue to acknowledge the many benefits of investing in Detroit. Contact Us today and one of our professional team members can help you understands the advantages of Detroit Real Estate Investments.
Mayor’s Office Says Property Taxes Will See a 5%-20% Decrease
Mayor Duggan recently announced that over the next three years, Detroit’s properties will be reassessed in an effort to accurately tax homes based on the true value. This is positive news for both primary homeowners and investors alike. Investors can enjoy the extra returns due to a lower yearly tax bill.
Crain’s Detroit Business Reports Detroit Home Sales “Up Sharply” in 2013 – 17.29% Increase
Across the U.S, home prices rose 13.6% - in Detroit, there was a 17.29% increase in prices from a year ago. This home price increase was “the most in more than seven years, signaling the real-estate rebound will keep bolstering household wealth in 2014” reports Crain’s.
Detroit Home prices, home values, and selling prices have been on the incline and economic development in the city has been coincided with the same trends. Metro Property Group has seen tremendous improvement in the Detroit Real Estate Market over the last few years. Foreclosure rates have continuously declined, while home prices, values, and rental rates increased.
Zillow Reports Detroit Metro Home Prices & Values Rise
According to the leading real estate database, home values in Detroit Metro are up 16.3% over the past year and Zillow predicts they will continue to rise. Additionally, the “median list price per square foot in Detroit Metro is $96, which is higher than the Michigan average of $92.” Additionally, the median rent price in metro Detroit is equal to that of Michigan’s, at $850. Homes within the city limit of Detroit are still better-priced than those in the suburbs, making Detroit's rental yield relatively higher.
Chase Bank Says It Will Invest $100 Million in Detroit
Over the next five years, the largest bank in America announced that it will invest $100M in Detroit economic development projects. The money will be invested in two forms - loans and grants.
The money will be spent on various aspects of economic development. Detroit will see improvements in several ways, such as blight removal, property rehabilitation, training programs for city residents, transportation (including the M-1 rail), start-up companies, and many more. Chase will be working with city officials and advocates, such as Mayor Mike Duggan, state-appointed Emergency Manager Kevyn Orr, Quicken Loans CEO Dan Gilbert, and many more.
Detroit has received many investments and philanthropic efforts in the past few years. Investment dollars are being poured into the city by many public and private sector investors. Detroit has seen tremendous results in its downtown renovation, economy, and residential housing market. The federal government also recently announced that Metro Detroit will receive funding to support the manufacturing industry as part of a new program.
Detroit Home Prices and Rental Rates Continue to Rise - CNNMoney
Years after the housing crash and 10 months after the largest municipal bankruptcy filing in U.S. history, the city that once seemed hopeless is recovering at a very fast pace. Detroit “has received millions of dollars from individuals, corporations and other organizations to help save its neighborhoods” and there are even programs that give residents free money (up to $20,000) for renting or buying in Downtown Detroit.
These programs are attracting many residents that are contributing to the increase in the city’s tax revenue and the values of homes, reports CNNMoney. Home values and prices in Detroit have been on the rise for a few years. Global and local investors are putting their investment dollars into the Detroit real estate market because the returns have proven to be profitable in many occasions.
Detroit: Largest Three-Year Home Price Gains (Q4 2013) - 53.9%
The Detroit Real Estate market has seen tremendous increases over the past few years. According to the latest CoreLogic Case Shiller Index Report (Q4, 2013), the Detroit metropolitan area saw the largest three-year home price gains through the fourth quarter of 2014. At 53.9%, the very next runner up is double-digits below Detroit’s remarkable gains.
Detroit’s home prices have been continuously increasing, creating investment opportunity for locals and foreigners alike. Along with the many new and existing businesses investing and relocating to Detroit, the real estate market has seen noteworthy improvements. As foreclosures and inventory decrease, the values and prices of homes increase.
These figures hint that the local real estate market is recovering, and bustling with real estate activity. As more and more businesses choose Detroit as their home, the office building vacancy rate is decreasing and more people are relocating to the city. The comeback is in full effect!
General Motors Announces $384 Million Upgrade in Detroit Facility
General Motors continues to invest in Detroit, where it has been headquartered for many years. The facility that currently manufactures various vehicles, such as the Impala, Malibu, and several all-electric vehicles (like the Volt and similar international models), employs about 1,600 individuals. According to CNN Money, GM has invested over $1 billion on this Detroit-Hamtramck facility alone as it continues to be one of GM’s most important facilities.
Detroit's Comeback - No Longer a Dream!
Like many others, GM strongly believes in Detroit’s recovery. Governor Rick Snyder was excited for the announcement, calling it “good news” for both Detroit and Michigan economies. With many investments coming in the city from all sectors, Detroit has gained momentum in its recovery process. Results that once seemed unfathomable are now live and in color, as public and private organizations continue to invest in Detroit’s revival. Metro Property Group is proud to be part of the comeback, as we continue to acquire, refurbish, and manage some of the best properties in the city!
Detroit Area Median Home Sales Prices Up 36% in One Year
In March 2014, the median selling price for homes in the Detroit area was 36% higher than those of March 2013. Detroit continues to receive attention from the media for its attractive real estate market. In many recent statistics showing selling prices and home value growth nationwide, Metro Detroit has continued to beat the national averages. Additionally, an average home in Detroit sells for significantly less when compared to most other cities. This plays a major role in increasing the ROI of Detroit real estate investments.
I'm very serious about being a part of the solution in Detroit. If you are looking to invest in Detroit give me a call to discuss your options.
Mr. Yon-Ferek Harrison
Investor / Business Consultant
Monday - Thursday
10:00 am to 3:00 pm CST
Direct: 1- 323-377-8402
Alternative Number: 1-561-502-5291 ask for Cedric
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