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Detroit 2023 Property news

Detroit Aims to Spur New Housing, Boost Property Values With Tax Change Detroit city officials are weighing a radical change to the way the city taxes property, which proponents say will help revitalise the city and become a model for the Rust Belt. Detroit would be the largest U.S. city to introduce a so-called land-value tax. Like most U.S. cities, Detroit calculates property taxes by estimating the value of a property’s land and buildings and charging a fixed percentage each year. Under the proposed change, the city would replace some property levies with a single tax on the land value only, according to people familiar with the matter. That means owners of vacant land would see their tax bills skyrocket, while the tax bill for many homeowners and commercial-property owners would fall. That in turn would push up home values and encourage more property owners to build, said Roderick Hardamon, a local real-estate developer who supports the change. Black homeowners have been hit particularly hard by declining values in recent decades, and proponents say the change could help shrink the region’s racial wealth gap. The tax change has a couple of legislative hurdles to clear. First, it would need state approval. Then it would need to win a majority of Detroit voters through a ballot measure. Detroit Mayor Mike Duggan has said the city is “80% of the way to a solution” on a new tax system, a spokeswoman said. The speaker of Michigan’s house of representatives, Joe Tate, supports the new tax policy, which is also backed by a number of advocacy groups, economists and property developers. “Reducing the tax burden creates stronger communities, not only in Detroit but across the state,” Mr. Tate said. Other mayors and housing advocates see Detroit as a crucial test case for this tax policy, one that could open the door for other cities to follow. “I think this is a policy that works in any city in Michigan and works in a lot of distressed cities in a similar way,” said Nick Allen, a Ph.D. student at the Massachusetts Institute of Technology and former manager at the Detroit Economic Growth Corporation, who has been pushing for the tax change. Detroit has many vacant lots and a lack of development. Investors, many from out of state, bought up land and kept it vacant, waiting for prices to rise, according to developers and community activists. A declining population pushed down home values and property-tax income in recent decades, leading the city to raise tax rates to make up the shortfall, causing more people to leave and pushing home values lower. In a study published last year, Mr. Allen and John Anderson, a professor of economics at the University of Nebraska-Lincoln, estimated that more than 96% of Detroit homes and small rental buildings would see their property-tax bills fall as a result of the proposed change. That, along with an expected increase in development, could help push up residential-property values, they said. If you are ready to invest in the Detroit housing market, or wish for a call and more information on the latest properties Global Investments can offer then please email us today at : invest@globalinvestmentsincorporated.com

Detroit business news 2022

Although things have begun to cool off a bit, the metro Detroit real estate market is still hot for sellers and frustrating for homebuyers trying to compete with investors. Inventory is still at record lows and the number of people looking to buy remains high. In comparison to other States prices are still attractively low. The 11-county Detroit region is home to more than 300 municipalities and 300,000 businesses, including 11 Fortune 500 companies and numerous educational institutions. Here is some of the latest business news from this week which is influencing the continued demand for Real Estate investment in The Motor City. General Motors GM has proudly been a part of Michigan for over 100 years – since 1908 A few important facts : Over 53,000 employees in Michigan Over $5.8 Billion in taxable wages. 1,985 Suppliers in Michigan in which General Motors spend on average $15.6 Billion with each year. News : General Motors Co. on Tuesday said it made $3.3 billion in net income in the third quarter, up from 2021’s third quarter profits of $2.4 billion despite a tight supply inventory still hindering sales and lessening demand amid economic uncertainty. GM’s revenue was $42 billion in the quarter, up from the $27 billion the company made in the same three months last year. The results beat investor expectations. “This week GM delivered solid 3Q results despite a very difficult supply chain environment and should be digested well by investors,” Wedbush Securities analyst Dan Ives said in a Tuesday note. “Total revenue of $41.9 billion was roughly in-line with the Street while impressively Adjusted EBIT was $4.3 billion vs the Street at $3.7 billion.” Wall Street reacted favourably to the automaker’s earnings report, with GM stock up nearly 2.5% in midmorning trading in New York. The Detroit automaker is still aiming to meet its projected guidance of net income between $9.6 billion and $11.2 billion, and adjusted pre-tax earnings of between $13 billion and $15 billion for the year. For the year so far, GM has made $7.9 billion, down from the $8.3 billion it had this time last year. “We’re delivering on our commitments and affirming our full-year guidance despite a challenging environment because demand continues to be strong for GM products and we are actively managing the headwinds we face,” GM CEO Mary Barra wrote in a letter to shareholders on Tuesday. On a call with media Tuesday, GM Chief Financial Officer Paul Jacobson said the company hasn’t seen “any direct impact on our products” from economic headwinds. GM’s average transaction price was $51,911 in the third quarter, according to Cox Automotive. By comparison, the automaker’s ATP was $40,053 in the third quarter of 2017. Earlier this month, GM reported its U.S. dealers sold 555,580 vehicles in the third quarter, up 24% from last year as inventory levels improved and demand remained strong despite rising interest rates. 2. Magna International, Inc. Magna International Inc. is a Canadian parts manufacturer for automakers. It is one of the largest companies in Canada. Magna has over 158,000 employees in 342 manufacturing operations and 91 product development, engineering and sales centres in 27 countries News : The Michigan Strategic Fund board approved Tuesday a total $10.2 million in state program grants for Magna International Inc. as the automotive supplier seeks to expand its footprint in Michigan and create more than 1,500 jobs. Companies under Magna International, Inc. applied for two new Michigan Business Development Program grants for projects in Highland Park and Shelby Township as well as additional grant funding for its facility in St. Clair, according to the Michigan Economic Development Corporation. “The board’s support of these investments will build on our efforts to position Michigan as a home for Magna and a continued leader in the future of mobility and vehicle electrification,” Quentin Messer Jr., CEO of the MEDC, said Tuesday. Michigan is Magna’s U.S. corporate home. Magna operates 35 facilities in Michigan, making it the state with its largest footprint. The company employs more than 10,000 Michigan residents, officials said. The MSF board approved Tuesday a $2.9 million grant for Magna Seating of America Inc.’s plan to lease a 114,000-square-foot seating facility at 12240 Oakland Blvd. in Highland Park. The project would create 490 jobs and result in a capital investment of up to $3.77 million, according to an MEDC briefing memo. The MSF board also approved a $1.3 million grant for Magna Powertrain of America Inc.’s plan to lease a 200,000-square-foot facility in the Shelby Commerce Centre in Shelby Township. The project would create 159 jobs and a capital investment of up to $96.17 million, according to the MEDC. The board approved for the project a 50% alternative state essential services assessment exemption valued at up to $369,837 for five years for its $81.7 million eligible investment. In St. Clair, the MSF board approved an increase in previously awarded Michigan Business Development Program grant funding from $1.5 million to $7.5 million. Magna Electric Vehicle Structures expects to employ 1,224, up from a previously announced 304 jobs for its facility at 1811 S. Range Road in St. Clair. The project will result in $196.4 million in investment, up from an originally proposed $70.1 million. Also approved Tuesday was a 100% state essential services assessment for Magna Electric Vehicle Structures for up to fifteen years valued at up to $6.3 million for its $287.6 million eligible investment. 3. Detroit sees record cruise ship activity in 2022 Cruise ships docked in Detroit more than 50 times during the 2022 season, a record and more than double the amount of dockings in Detroit in 2019, the Detroit/Wayne County Port Authority and a coalition of Midwest states, cruise lines and others said Friday. The announcement coincided with the final weekend of cruise ships docking in Detroit. Le Bellot, a cruise ship operated by the French cruise operator Ponant, was docked in Detroit on Friday. Ponant cruises in the Great Lakes go to locations such as Toronto, Mackinac Island and Milwaukee

The Detroit housing market is not cooling down !

Detroit had a rollercoaster year last year with many ups and downs, it seen the re-opening of nightlife and restaurants but also seen the closure of many small business due to the after math of the pandemic. 2022 is full steam ahead for Detroit, with the revitalization of long-abandoned historic landmarks to affordable housing developments, safer streetscapes, urban forests and exciting new projects across the city, there is a lot to look forward to in 2022. Detroits new development projects include. Joe Louis Greenway: A 27-mile loop for biking and hiking, starting at the Detroit Riverfront and passing through Dearborn, Hamtramck, and Highland Park. Ford’s Mobility Innovation District: A walkable 30-acre Corktown campus next to the renovated Michigan Central Station that will serve as the automaker’s hub for research and development for a range of new mobility products, from self-driving cars to non-gas vehicles. Love Building: Once this space is completed, the Allied Media Projects will share it with Detroit Community Technology Project, Detroit Disability Power, Detroit Justice Center, Detroit Narrative Agency, and Paradise Natural Foods to promote unity and social justice in the community. Dreamtroit: A mixed-use development with 81 apartments and 38,000 square feet of commercial space. Osi Art Apartments: A colorful, four-story, 30-unit housing complex in Woodbridge, half the units are set aside for people with household incomes of less than $60,000 and commercial space is available for rent. Former Michigan State Fairgrounds turn to Amazon Distribution Center: 142 acres, 78 of which are currently being leased to Amazon, will be turned into a distribution center that will employ approximately 1,200 workers. All of these new developments are having a positive impact on the housing market, the Detroit housing market is seeing traditional seasonal trends, which may present a window of opportunity for buyers looking to invest in rental property in Detroit. Of the 180 neighborhoods in Detroit, the most expensive neighborhood to buy a home is Boston Edison West where the median listing price is $305,000. The highest residential sale in Detroit was recently recorded, the Fisher Mansion at 1771 Balmoral in Palmer Woods recently sold for $4.9 million to Stellantis North America COO Mark Stewart and Antonio Gamez Galaz. But we do need to take into consideration the soaring inflation rates, we see a 8.5% inflation rate, being the highest seen in the past 41 years. There also has been an increase in interest rates, in just the past 60 days we have seen mortgage rates for a 30 year fixed climb from an average of 3% all the way up to 5.13% for a new mortgage. But no matter how you look at it 5.13% is still a decent inters rate, it has risen to nearly 7% , there might be a slight decrease in buyers in the real estate market, but not enough to cause any sort of a ‘bubble burst like we seen in the past. This is why now is the time to buy in Detroit, with so many developments taking place its attracting new residents to the City, this is pushing up rent prices, even with interest rates beginning to rise, by waiting a year for rates to drop back down near 4%, the increase in home values will cost you more than the increased interest rate. In fact, higher rates could be contributing to a sense of urgency for buyers to find a house before rates rise further, although one different than the “fear of missing out” urgency that was more common last year and the year before following the initial surge of COVID-19. “The fact is for every house that hits the market, there are at least four or five buyers that are attempting to get it,” said Realtor Teri Spiro, president of the Greater Metropolitan Association of Realtors. “The shortage of entry-level housing is really almost catastrophic If you would like to see any of great Detroit properties please invest@globalinvestmentsincorporated.com

The resurgence of Detroit and why you should invest in 2021

The rental real estate market in Detroit is crazy right now, which is just the thing real estate investors want to hear. Demand for single-family rentals is skyrocketing, and the median price of a single-family home in Detroit is well below $100K, offering an amazing opportunity for rental property with solid yields and cash flow. The Motor City is famous for its innovation and work ethic, yet the decline of the domestic auto industry and the devastating effects of 2008 had some questioning whether Detroit could make a comeback. The verdict? Detroit real estate investing has attracted many new investors, especially those who know where to look. With high-end retailers like Whole Foods moving in, and high tech stalwarts like Microsoft, Google, and Pinterest opening offices, Detroit’s future is looking bright. That’s good news for the housing industry and good news for investors. So what are the upsides and challenges of investing in the Detroit real estate market in 2021 ? Population Growth Although the population of Detroit has been slightly declining, the city is seeing an influx of millennials. As the Detroit Chamber reports, over the last decade metro Detroit saw the second highest growth among peer cities for populations between the ages of 24 and 35. Key Population Stats: Detroit is home to about 670,000 people in the city and more than 4.3 million residents in the metropolitan area. Detroit is the most populous city in Michigan, the largest city on the U.S.-Canadian border, and the second largest metropolitan area in the Midwest after Chicago. Median age in Detroit is 39.9 years with 38% of the population between the ages of 20 and 49. Per capita income in Detroit is $35,315 while median household income is $63,474. Job Market The 11-county Detroit region is home to more than 300 municipalities and 300,000 businesses, including 11 Fortune 500 companies and numerous educational institutions. As the Detroit Chamber reports, metropolitan Detroit is home to robust technology infrastructure and a workforce recognised around the world for its skills, expertise, and productivity. Key Employment Stats: GDP of the Detroit-Warren-Dearborn, MI MSA is over $237 billion, according to the Federal Reserve Bank of St. Louis, and has grown by more than 28% over the last 10 years. Employment growth in Detroit is 1.77% year-over-year with the metro area home to over 2 million employees. Median household incomes in Detroit grew by 3.6% year-over-year while median property values increased by more than 5% over the past 12 months. Unemployment rate in Detroit is down to 8.9% (as of Nov. 2020) with the construction, information technology, and financial activities sectors showing the fastest signs of new growth. Key industry clusters in Detroit include automotive and mobility, defence, health care, information technology, and transportation, distribution, and logistics. Largest employers in the Detroit region are Ford Motor Co, General Motors, Ally Financial, University of Michigan, Beaumont Health, and Quicken Loans. Major colleges and universities in Detroit include University of Michigan, Wayne State University, and Lawrence Technological. 91% of the residents of Detroit are high school graduates or higher, while over 32% hold a bachelor’s degree or advanced degree. Real Estate Market Northern Michigan’s housing market is “on fire”, according to The Detroit News. The real estate market is helping to fuel the red hot market, with the median list price of a single-family home in Detroit well below $100,000. Opportunistic real estate investors may find Detroit the perfect market to acquire very affordable rental housing for all cash, then refinance at a later date. As The Wall Street Journal reports, lack of credit is making it hard for local residents to buy a home. That may be one reason why almost half of the households in Detroit rent rather than own. Key Market Stats: Zillow Home Value Index (ZHVI) for Detroit is $43,113 through November 2020. Home values in Detroit increased by 12.0% last year and are projected to grow by another 12.2% during the next 12 months !! Over the last five years home values in Detroit increased by over 92% ! Median listing price of a single-family home in Detroit is $65,000 based on the most recent report from Realtor.com (Nov. 2020). Median list price per square foot for a home in Detroit is $58. Median selling price of a single-family home in Detroit is $60,000 Sale-to-list price ratio is 95.05%, meaning that homes in Detroit are selling for 4.95% below the asking price on average. Strong Renters’ Market According to ClickOnDetroit.com, single-family rentals are skyrocketing, as tenants leave apartments to rent a home they can call their own. Key Market Stats: Median rent in Detroit is $983 per month for a 3-bedroom home, based on the most recent research from Zumper (Jan. 2021). Rents in Detroit have increased by 16% year-over-year. Over the past three years average rents in Detroit have grown by nearly 23%. Renter-occupied households in Detroit account for 44% of the total occupied housing units in the metropolitan area. Millennials and Generation Z make up 38% of the population in Detroit. Quality of Life Many real estate investors are surprised to learn that Detroit has been experiencing a renaissance over the last few years. New housing and businesses in the city’s Midtown, Downtown, and New District areas are attracting residents and visitors. Millennials are attracted to Detroit by the low cost of living, affordable rentals, and vibrant neighbourhoods. Key Quality of Life Stats: Cost of living in Detroit is 18% less than Chicago, according to NerdWallet’s cost of living calculator. Forbes ranks Detroit as one of the best places for business and careers in the U.S., with the city home to a variety of companies in emerging technologies such as nanotechnology and hydrogen fuel cell development. Detroit is one of the best places to live and a great place to retire, based on the most recent research by U.S. News & World Report. The 73-story, 7-skyscraper GM Renaissance Center in Detroit is one of the most photographed landmarks on the

Dan Gilbert the Detroit legend

When Dan Gilbert was 11 years old he took a drive with his grandfather down Woodward Avenue in Detroit. He sat in the back seat of their ’71 Oldsmobile as his grandfather pointed at an empty retail location on Detroit’s main drag and said there “usta be” something over there. Then he pointed out how there usta be streetcars downtown, there usta be this, usta be that. Gilbert says that memory captures how he saw the city while growing up in the neighbouring middle-class suburb of Southfield in the 1960s, and he shared it in a keynote speech with several hundred real estate professionals gathered at the Urban Land Institute’s annual meeting in May, at Detroit’s Cobo Center. “Doesn’t matter who you are or where you come from: I can guarantee that people have been pointing to things for a long period of time and saying ‘usta,’” he said. “And when you look back at the sort of symbolic bottom of Detroit, I couldn’t think of any worse or sadder word to describe it than ‘usta.’” Detroit is a large city that lost hundreds of thousands of residents over decades. Its downtown, where Bedrock’s development is focused, became increasingly vacant. This is now finally changing, and it’s in no small part because of Gilbert, the billionaire founder of mortgage company Quicken Loans and the owner of NBA’s Cleveland Cavaliers. Over the past ten years, as media reports, films, and books churned out negative slurs portraying Detroit as a hollowed-out dystopia, Gilbert and his real-estate firm, Bedrock, were buying swaths of property at bargain prices and pumping in billions of dollars. Right now there are about 100 properties in Bedrock’s Detroit portfolio. Since its founding in 2011, Bedrock has invested and allocated a total of $5.6 billion into the city. Rock Ventures, Gilbert’s umbrella company of more than 100 businesses, accounts for 17,000 jobs in Detroit, making it the city’s largest employer, minority employer, and taxpayer. He moved Quicken Loans, now the US’s largest mortgage lender and the foundation of his fortune, to Detroit in 2010. As Detroiters struggled with the results of years of poor governance at the city and state levels, Gilbert continued a spending spree with the aim of breathing life back into the heart of the city. Now, for the first time in years, not only are Detroiters and Michiganders interested in what’s happening downtown. Global Investments have seen an increasing demand in the last 2 years from investors eager to capitalise on the early days of picking up the best bargains in the best locations in Detroit and Cleveland. Dan Gilbert is looking to save Detroit again ! Obviously many clients have contacted Global Investments recently concerned about investing right now during the global Covid 19 pandemic. For a more detailed answer here is a link to a great previous blog on this very subject : Rental property investment could be the safer option in today’s struggling stock market It is great news then for our investors to hear the positive steps being taken by Dan Gilbert in Detroit and Cleveland during these crazy times. This will no doubt give those still sitting on the fence a little but a reassurance. The next few weeks will most certainly be a buyers market. Dan Gilbert has donated $1.2 million to Detroit organisations to help them fight the outbreak of COVID-19. The donation from the Quicken Loans Community Fund and Gilbert Family Foundation includes $500,000 for the United Way for Southeastern Michigan, $250,000 to the United Community Housing Coalition and $450,000 for small businesses and existing grant partners to ensure they can maintain operations in the weeks ahead. “Our actions today will impact the trajectory of the coronavirus tomorrow, which is why it is so critical that we, as a philanthropic community, immediately support Detroit residents through direct investments in families and those nonprofits that provide crucial services,” said Jennifer Gilbert, co-founder of the Gilbert Family Foundation. “The Gilbert Family Foundation is proud to invest in United Way and United Community Housing Coalition in order to mitigate the impacts of this virus today and for the foreseeable future. We encourage other organisations to join us in supporting this necessary cause.” The money provided to the United Way for Southeastern Michigan will go straight to its COVID-19 Community Response Fund, which supports families and nonprofits to ensure access to health care, emergency financial supports and food, as well as addressing long-term needs that result from loss of jobs and income. Quicken Loans is also matching fundraising for team members who donate to organisations in Detroit, Cleveland, Phoenix and Charlotte. Dan Gilbert is also waiving rent and parking payments for up to three months for the small businesses located in buildings. Select businesses that are located in Bedrock buildings will not be charged for rent, parking, or other expenses through the end of June, the company announced in a statement released on Monday. “As with all of our tenants, entrepreneurs and small businesses play an incredibly important role in our local economy, which has been central to Dan Gilbert’s vision over the last 10 years of his investments in Detroit and Cleveland, ” Bedrock CEO Matt Cullen said in a statement. “It is going to take the entire community to mitigate the effects of this pandemic on the region, and we are happy to do our part to help our portfolio’s most vulnerable businesses weather the storm. In Detroit, Bedrock houses 125 retailers and restaurants, in addition to another 210 businesses in office space, according to a press release. The company said in a statement that none of the small businesses it leases space to had folded due to the virus thus far. So if you are looking to take advantage of buy to let opportunities in Detroit or Cleveland, Speak to a member of our team today and we’ll help guide you through the process. Email Mike or any of his team at Global at invest@globalinvestmentsincorporated.com .

A BIG 2020 IN STORE FOR DETROIT

Detroit as a city has seen huge developments over the last 6 years. Downtown has been transformed, international hotels and stores have opened, a new rail system, a new stadium, a new shopping mall, the list goes on and on. So is the development now finished and is Detroit back to its former glory? There’s no denying that Detroit is on the up and still pushing ahead. In fact, we can expect many more developments over the coming years as it stakes its claim as the beacon city of the Mid West America. At least $3.4 billion in construction projects are currently underway in downtown alone, while another $877 million is being spent in Midtown; $389 million in the New Center; and $353 million in the central business district. That’s $5.1 billion altogether. According to the latest reports, this capital investment will generate 6,000 new apartment units, 1,200 hotel units, and 2.1 million square feet of new office space. Many young professionals are opting to live downtown over the suburbs, as the population in Greater Downtown (including Midtown, Corktown) continues to grow. CNN recently ran an article that aptly summarises the city’s recovery: “Six years after Detroit filed for the largest municipal bankruptcy in US history, the Motor City is roaring back to life, Detroit’s rebound is one of the most underrated stories in the nation.” The revitalisation of Detroit was spearheaded by Quicken Loans’ billionaire founder Dan Gilbert. He has transformed the downtown core, Gilbert’s network of companies employs 17,000 people in Detroit. Since 2009, Gilbert has pumped $5.6 billion into downtown Detroit – his own and borrowed money –and now owns more than 100 buildings in the 7.2-square-mile center. There are so many new developments taking place in Detroit it is hard to choose just a few to mention! But here are some examples of what we can expect in the coming years: Fitzgerald Revitalization Project – This is the most ambitious neighborhood project the City has undertaken. Fitzgerald is near the University of Detroit Mercy and is surrounded by some of the best school and universities in the whole of Detroit. This neighborhood has hundreds of beautiful brick properties and a boatload of character but is in need of rejuvenation. There are big plans for new parks, landscaped pathways, new street lighting, new roads and other developments to get this area back to its former glory. 2. Gordie Howe International Bridge – This is a new bridge that will connect the USA with Canada. It is named after Canadian-born, Detroit Red Wings legend Gordie Howe and will be 1.6 miles long, costing an estimated $5.7 billion. 3. Michigan Central Station – In the next three-to-four years, Ford Motor Company will build a campus for mobility in Corktown at an estimated cost of $740 million. The campus will include the old DPS Book Depository, renovated into offices, retail, and residential, and the renovation of the long-vacant Michigan Central Station. 4. The Mid – The Mid will be the biggest development in Detroit north of Mack Avenue since the 1920s. Initial plans call for a 25-story, 228-room hotel with luxury condos making up the top nine floors; a 30-story mixed-use, multi-family development with 250 apartments and first-floor retail; and a 12-story building with “co-living” spaces. 5. Hudson’s site – The new Hudson’s will total approximately 1,000,000 square feet (not including underground parking for 700 cars), with 330 residential units and 240,000 square feet of office space at a cost of over $900 million. 6 . The Monroe Blocks – Covering the area between Campus Martius and Randolph along Monroe, the project as initially announced would add a 35-story office tower plus residential at a cost of $830 million. 7. Fiat Chrysler Plants – At the Connor Creek Industrial Center, the automobile company will spend $1.6 billion converting its Mack Avenue Engine Complex to produce next generation Jeeps, and $900 million to retool the Jefferson North Assembly Plant. It estimates that these upgrades will bring 5,000 new jobs to Detroit. 8. East Riverfront – The Riverfront is already a popular destination in Detroit, but numerous projects will make it more accessible and attractive to visitors. Expect redevelopment of vacant warehouses and land, increased residential and retail, streetscaping along Jefferson Avenue, a new greenway, an urban beach, and the Riverwalk extending to Belle Isle. These are just a snippet of some of the new developments taking place in the every changing city of Detroit, so much progress has been made. All of these changes have had a positive impact on the housing market, as we have seen that property prices have risen in the last six years.The Detroit metro area has experienced year-on-year increases in employment every month since June 2010 so this has pushed up the rental market. When Realtor.com released their list of the US hottest property markets, Detroit came among the top 20 and, according to Zillow, whilst house prices have continued to grow since 2011 they are still a huge way of their historic norms. This suggests that there is still significant space for growth and the possibility for property appreciation to continue for some time. If you would like to see our latest Detroit inventory please email invest@globalinvestmentsincorporated.com

DETROIT PRICES CONTINUE TO RISE WHILE SUPPLY IS STILL FALLING

Global Investments Incorporated have been selling in Detroit for over five years now, this year we are seeing the lowest supply and the highest prices in the last five years. Low inventory has forced the median price for single-family homes to rise 8 percent over the past year, according to May market data from Realcomp Ltd. II. Detroit saw the largest year-over-year percentage gain in the median sale price of 371 homes of 48 percent to $37,000 last month. That number nearly doubled the gains that the city recorded in the four years prior, which saw median prices rise from $10,000 in May 2013 to $25,000 in May 2017. Lauren Wilson from Detroit-based Luxury Home Enterprise LLC quoted “”You’re sitting on something very valuable if you purchase a home in Detroit for $60,000,” she said. “I assure you when you’re ready to sell a few ears down the line, you’re likely to double your price”. According to Crains Detroit the competitive market is being driven by a growing demand for homes and a Metro Detroit inventory that is down by 23 percent compared to the same time a year ago. Fueled by a low unemployment rate and an economy that has proven to be formidable in recent years, buyers and Realtors alike are running into challenges. Realcomp CEO Karen Kage is surprised that the total number of home sales has stayed steady despite the steep decline in market listings “Days on market continues to drop, which is another telling sign. When these houses hit the market, it has a line out the door,” she said. “We don’t want to get into the same position we were in 10 years ago when prices went up, up and up.” At the moment we can not predict when the trend may change as buyers are still lining up as soon as homes hit the market but we will continue to deliver the best available tenanted properties in Detroit. Detroit has come a long way in the last five years and we always stayed ahead of the game, we signed up the biggest Brokers and Realtors to ensure our clients got the best exclusive properties that were on offer in Detroit. As a company we have said it before, time is starting to run out for the Overseas Investor who wants to buy in Detroit, high market prices and low inventory levels will make it increasing difficult to sustain a good return. If you are considering buying a property in Detroit this is the year you need to do it, we can not predict how much further the market will rise. If you would like more information on our Detroit properties please contact Mike or any of the Global team.

DETROIT AND CLEVELAND TWO GREAT CITIES BUT HOW ABOUT THE NEIGHBOURHOODS ??

Detroit has been the number one investment city in the US for a number of years now with Cleveland following ranks in second place. In 2018 it looks like things could start to change as prices increase in Detroit and with inventory running low Cleveland could take pole position this year, both sales and enquiries are increasing for the city. Both of these cities provide the perfect investment model for the first time investor, low level entry point and good sustainable rent, some say these cities have led to an explosion in real estate investment in the US with buyers from every corner of the globe getting involved. The best indicator of these markets is to look at the rent-to-value ratios, a three bedroom house in Detroit will rent for the same amount as a similar three bedroom house in St Petersburg Florida. In fact Detroit has the second highest rent-to-value ratio in the country at just over 8.5%. While Cleveland has a lower rent-to-value ratio it has a 95% occupancy level which makes its incredibly appealing to investors. Deciding between the cities maybe challenging enough for a first time investor. Once they have decided on where to invest the next question is which neighbourhood to invest in ? Like all cities you have good and distressed areas in Cleveland and Detroit, this fact coupled with the resurgence of re-development and active Council involvement can mist the decision. 1. Is this a distressed neighbourhood that is turning corner? 2. Is this my opportunity to see some appreciation? There is no straight forward answer to this question, without stating the obvious and say only buy in the most expensive areas (which will mean a lower cap rate ) we have to use a basic set of rules to try and minimise the search. Different companies use different models in order to achieve this, we have the Grade System, the Grid System, Market Analysis, Index Systems, Price Comparisons, Property Taxes, Ratio Values etc and the list goes on and on. We also have a plethora of websites that gives us statistics on the liveability, crime rates, schools, employment rates etc. ( But which ones are correct? ) Choosing the best buy to let areas to invest in can seem like a minefield, but it doesn’t need to be, we adopt a simple transparent model which paves the way for successful investment. We look at the most expensive areas and work backwards, we identify surrounding neighbourhoods which offer higher rent-to-value ratios and also offer the opportunity of capital appreciation. DETROIT If we take Grandmont Rosedale in Detroit as an example we can see that prices have surged in this area over the last three years but there are several surrounding blocks and streets that can also offer great properties at lower prices. Surrounding neighbourhoods like Grandale, Warrendale and Grandville have increased in popularity as many investors realise they have now been priced out of the market. While the West of Detroit has always been the most demanded by investors we can also see a similar situation on the East of Detroit, there are still many well priced neighbourhoods that offer well priced properties with good rent-to-value ratios. Morningside, East English Village, Denby, Regents Park to name just a few. CLEVELAND OHIO Moving this model to Cleveland again we pin point good surrounding neighbourhoods that offer the opportunity for capital appreciation. Taking Buckeye Shaker as an example this neighbourhood is next to the highly sought after Shaker Heights, to purchase in Shaker Heights will cost you approximately 30% more but Buckeye Shaker takes advantage of local facilities and rental amounts are more or less on par with Shaker Heights, lower priced property with the same rents as Shaker Heights meaning a high ROI. In the North of the city we can see this again with an area called North-Collinwood, this area is seen as a very strong investment area in Cleveland, it is right next to the Waterloo District, Euclid, Bratenahl which are all great areas but again are more highly priced. But overall it is not just about choosing the right neighbourhood, you can build this picture up yourself. It is about the management companies, our on the ground staff who are from these cities, our on going due diligence before we market a property (we only choose one from every 20 properties) our 24 hour aftercare, our years of experience, our exclusive listings, our partnerships with the biggest US real estate companies, our partnerships with the best title companies, everything to ensure your property investment is a success. If you would like more information on any of our great properties in Detroit are Cleveland, please contact any of the team at Global Investments Incorporated at invest@globalinvestmentsincorporated.com

DETROIT JUST KEEPS GETTING BETTER – HUGE DEVELOPMENTS FOR 2018

Over the last few years we have seen huge developments all across Detroit, last year we seen the groundbreaking on the Hudson site, the opening of the new the Little Caesars Arena and the opening of the QLine Metro system which goes through the redeveloped Woodward Avenue. So what can we expect to see in 2018 ? This year we are looking at five more huge construction projects all of which will make this city even better than it is today. We are going to see the development of new office towers and and more residential living space in downtown Detroit, the two main projects are Hudosn and Monro towers with a total investment of over $1,739 million. Three hotels are set to open in 2018: The Siren Hotelat the Wurlitzer Building, the Shinola Hotel, and the Element Detroit Hotel, these hotels are aimed to take advantage of the increase in tourism in Detroit city and the surrounding areas. More retail is planned in 2018, last year the city council passed a commercial corridor plan that would support commercial areas around the city with $125 million going towards landscaping, better parking, improving sidewalks, etc. Woodward Avenue is now bustling and more big retail names will be arriving in 2018. There will be huge development in better public spaces, the final designs of the West Riverfront are nearly ready and work will also start this year on both Capitol Park and Atwater Beach. We seen the Qline launched in 2017 and this year DDOT bus service will start offering free rides on Saturdays to encourage this form of transport. We are expecting announcements of the expansion of the Qline further down Woodward Avenue or another route down to Jefferson. These are not the only developments taking place in 2018, there is activity taking place all over Detroit in the development of neighbourhoods, schools and park systems. Detroit has come along way in the last few years and this has now had an impact on property prices, year on year we have seen prices rise especially on the Westside side of the city. This is a great time to invest in Detroit and we have the best properties available for sale, if you would like anymore information please contact Mike or any of the Global team. invest@globalinvestmentsincorporated.com

What does 2018 hold for Detroit ?

2017 was a phenomenal year for the city of Detroit, investment and development surged to a new level and real estate prices really gained pace. Some exciting developments in 2017 included the completion of the Little Caesars Arena and the QLINE rail system. The exterior work on the $313 million Book Tower restoration started along with the $35 million Ashton Detroit Development of luxury condos in Downtown. Work is also underway to restore the eight-story Farwell Building, the $39 million project will have 82 apartments and over 25,000 square feet of retail space and construction has officially started on the Metropolitan Building, which will become the Element Hotel. We also seen construction started on the biggest redevelopment in North America—the Packard Plant, led by Arte Express, the first phase will renovated the Administration Building and the bridge over East Grand Boulevard. We also seen many new retailers and restaurants opening in 2017, Macy’s Backstage part of Macy’s New York opened three new stores in Michigan. H&M continued their expansion opening in the Tanger Outlet Center, Shinola also opened some new stores and have just announced the opening of a new hotel in Downtown Detroit in 2018. Aldi grocery also continued its expansion and remodelling, continuing to open stores in Michigan. Wixom, Redford. Detroit Vegan Soul the nationally acclaimed veggie-friendly comfort food restaurant opens its doors in Grandmont Rosedale, River Bistro Detroit owned by chef Maxcel Hardy opened in Rosedale Park, Takoi which specialises in Southeast Asian cuisine opened in Corktown. Chef Kate Williams opened Lady of the House eatery also based on Corktown. Eatóri Market (a favourite with the Global staff) opened at 1215 Griswold Street in Downtown. The Apparatus Room by Michelin-star collector Thomas Lents opened his flagship restaurant at the base of downtown’s new Detroit Foundation Hotel. Apart from large investments in commercial properties we have also seen an increase in neighbourhood rejuvenation projects. Fitzgerald Redevelopment Ground recently broke on this transformative neighborhood redevelopment, it will include renovating 115 currently vacant homes into a mixture of rental and for sale properties; landscaping and maintenance of 192 vacant lots; and creating a 2-acre central park anchoring a new linked greenway. Mayor Duggan released plans of a 125 million neighborhood revitalization scheme, in July came the announcement that the city had been awarded a $2 million Wilson Foundation grant for the design and pre-construction of the Inner Circle Greenway, a 26-mile recreational pathway running through a number of Detroit’s neighborhoods. And then in September came Detroit Design 139, an exhibit featured at 1001 Woodward through the end of that month highlighting 38 development projects either planned or already underway around the city of Detroit – not just downtown. In addition to the $125 million in projects funded by the bond funds, the city also plans to spend another $193 million of budgeted city, state and federal dollars (for a total investment of $317 million over the next five years) to improve a total of 300 miles or major roads and residential streets across the city. As we can see 2017 was a packed year for Detroit and these are just some of the new developments but things dont seem like slowing down either in 2018. The David Stott Building, an Art Deco skyscraper, will open again in 2018, we will see the start of the much-anticipated Hudson’s site, the development will include the tallest building in Detroit (and Michigan), plus a podium building activated for community engagement. A new $60M development was just announced on East Jefferson and Lafayette Park. The new mixed-use development will bring 213 residential units, plus retail space including a small-format Meijer grocery store. This development is expected to open in 2019. The first redevelopment in the massive East Riverfront plan is going to be the Stone Soap Building, which will see renovation of an old structure and new construction on top of it. Banyan Investments is leading the $27 million development, which should break ground in the spring. Google is to open offices by Detroit’s Little Caesars Arena in spring 2018, businessman Dan Gilbert, the founder of mortgage company Quicken Loans and a major Detroit property owner, has been developing a tech area in downtown Detroit, dubbed the Madison Block. Google’s move to Detroit from the suburbs will add to that cluster of tech companies. Overall there has been a 50% increase in Detroit-based startups in the last three years. Travel media company Lonely Planet called Detroit the “American comeback city” in a list of best travel destinations for 2018, it is now ranked No. 2 in list of world’s top travel destination for 2018. We will see the Detroit Grandprix been held at Belle Isle Park in the summer of 2018 as well as many other great out door events including the Movement dance festival. Detroit really is a true come back story and one that looks set to continue in 2018 and beyond, Dan Gilbert one of the main figures in Detroit’s rejuvenation summed it all up perfectly: “If someone would have said five years ago that we’re going to be out of office space and residential units, 100 percent occupancy downtown and Midtown it would be unfathomable and you would have said, “You’re crazy, that’s impossible.” But since that is the case here, the only way to grow is vertically. I think when you say five or 10 years from now you’re going to see big projects completely done, the whole skyline is going to be completely different. That will be the main thing people notice. I’m hoping that in 10 years Detroit is one of the handful of technology, entertainment and marketing centers of the United States or maybe the world. People like you for instance, who have their own business, 30 years old, they’re a creative class, this is the place to be. This is where the action is. What the manifestation of that will look like I don’t know exactly but those are the themes. And we are