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U.S. Foreclosure Deals Throw Detroit into the Spotlight - 26 October 2010

Searches for U.S. property are up, according to several real estate portals. While Florida remains the top American choice for overseas investors, another state is sparking a surprising amount of interest: Michigan.

Inquiries about Michigan’s largest city Detroit have been on the rise in recent months, as “Motown” is touting some of the cheapest homes in the country as well as tax breaks for property investors.

Detroit was hit rather hard by the recession, as it is the home to the country’s dwindling automotive industry. In the last few years, however, the U.S. government has bailed out many of these automakers, and heavyweights like Ford and General Motors are now reporting billion dollar profits for the second quarter, while planning to introduce thousands of new jobs between 2011 and 2013.

The government has also tried to boost economic conditions by offering subsidized rents to residents and tax incentives to the film industry, which economists are saying has put the city well on its way to recovery.

Investors from the U.K., Canada, Saudi Arabia and Singapore have already been looking into Detroit deals, as median home prices are currently $68,000 there. Many overseas buyers are finding that they can pay virtually nothing, then refurbish and rent out their homes until they are able to resell into the local market.

Property interest is on the rise in many other parts of the U.S. as well — such as South Florida and New York — with one online property portal citing a 149 percent increase in hits over the last year.

Florida has traditionally been the poster child for good American property deals, as more than 70 percent of homes currently on the market there are short sales or foreclosures. Florida was also listed in a recent Telegraph article as the second best overseas destination for Britons to retire.

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