Being declared bankrupt may have been bad news for the US city of Detroit, but expatriates are flocking to it in order to pick up property bargains.
House prices have dropped significantly in recent years and the recent bankruptcy has seen them fall further, tempting investors in search of quick profits and buy-to-let opportunities.
With an estimated deficit of $18.5 billion (£12 billion), Detroit is the biggest city in the US ever to be declared bankrupt.
American investors and expats have been keen to buy up properties in bulk with the hope of getting a high return through rental yields, reports the Telegraph.
Chris Stead, director of Property Investment House, told the news provider: "A lot of people in Detroit lost their jobs and were forced into rented accommodation.
"Rental demand has been very strong because the majority of tenants cannot qualify for a mortgage because the banks aren't actively lending. That's why there's a real opportunity for investors who have the liquid cash to go in and buy a home."
Many of these buyers live and work in the likes of Dubai, Singapore and Hong Kong, where expats are restricted from buying property.
These professionals are in a position where they can pay cash and will have property to fall back on when their time as an expat comes to an end.
Detroit has some of the highest rental yields of anywhere in the world, with a three-bedroom detached house generating double digit percentage returns.
Expats who buy property at this time are taking a risk as homes in the city could drop in value again, but the majority of them have already been reduced considerably.
Now that it has been declared bankrupt, Detroit has the opportunity to restructure its debts and start anew, which could lead to the infrastructure it needs being built.
In its boom years, Detroit was at the heart of motor manufacturing in the US, with Ford, General Motors and Chrysler all operating out of the city.
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