Just read from Channel NewsAsia that Detroit on Thursday has became the largest city in US history to file for bankruptcy protection after decades of decline and mismanagement rendered the home of the USA's auto industry insolvent.
I think this is not a piece of good news for investors on Alternative Investment - Detroit Exit Strategy.
For details, refer to article on Channel NewsAsia:
Link to Detroit is bankrupted
Another report from CBC News, with some photos of the houses in Detroit, looking so desolated and dismal.
Link to Detroit is bankrupted
However, some background studies and extracts from the FAQ section related to this plan claim otherwise, what is your points of view on the following claims:-
ReplyDelete- The Exit Strategy can only work in distressed markets and as the market/economy recovers, naturally the cost of purchase and renovation increases thus lowering the returns. We will develop in many other cities across the U.S. and different returns will be possible dependant on time of application and market conditions in that particular area. We are lookingat a 4-5 year window - THE TIMIE IS NOW!
- the only company offering a buy to sell strategy based on rehousing disadvantaged families. Most U.S. property investments focus on cash-flow, in the hope that the properties will rise in value over the agreed rental period. It is unlikely the properties will rise in value over the short / midterm, and it would take 6 years to be cash flow positive based on current rentals.
- The Exit Strategy business plan is to re-house 50,000 families over the next three four years in the U.S.
It sounds more like a "humane" type of investment for such distressed situation, especially now. Is this somehow a rather unusual investment opportunity?
If it is for humanitarian purposes, I salute them. However, MAS has already put that compamy in the Investor Alert List. Think of all the other companies like The Gold Label, Geneva Gold, etc, who are on MAS alert list and many investors have lost their hard-earned savings through those investment.
ReplyDeleteSo, the risk is too high and do not jump into the sea when people warned you that "sharks are in the sea".
Farmer.
No investments are too risky, the Investor themselves are.
ReplyDeleteSean,
ReplyDeleteYes. It is the greed and naivety of the investors that they fall to the same trick again and again.
Farmer.