Memphis has long been referred to as “The City of Good Abode”. And with good reason. Over the decades, it has developed into a great city of suburbs with single houses and good-sized yards. Today, houses continue to sell well below the national average. What makes Memphis particularly attractive to investors is that homeownership is also below the national average although there are plenty of well paying jobs in Memphis. This combination is exactly what buy and hold investors are looking for. Today’s strongest segment of the real estate investing market is buying and holding.
Why Memphis Remains Attractive to Investors
Thanks to the convergence of multiple transportation systems, Memphis has attracted three Fortune 500 companies – FedEx, AutoZone, and International Paper and several Fortune 1000 companies. The major transportation systems include railroads, highways, the Mississippi River, and the international airport where FedEx processes more than six million packages every day.
Still, the Memphis economy is even more diverse than these tree major employers. Little known to most real estate investors is that Memphis is a major banking center, as well as home to several major science and technology businesses. Another significant industry is medicine with six major hospitals and medical training universities. The city is also a southern retail center and tourist destination. Outside of the city, you’ll find a strong agriculture industry with a history going back to the cotton plantations. As robust as the Memphis economy is, it will become even stronger from the multiple economic development programs that have been in place since 2003.
Invest in Memphis Today for Tomorrow’s Fortune
Many investors from outside the state and from foreign countries are making the move to invest in Memphis while this real estate market is still very attractive. The money is coming from everywhere but is most notably from California and New York. Among the reasons is that Memphis is 19th largest city in the United States and the 3rd largest in the Southeast. With its diverse and strong economy, it continues to attract new people to the city and suburbs. Of course, that means more renters for investors.
While other real estate markets were struggling to recover, Moody’s Case Schiller Index ranked the Memphis market as #1 for property appreciation between 2011 and today. Additionally, Moody’s forecasts property value appreciation at 18.8% over the next four years. With over 48% of the population being renters, the vacancy rate is and will remain well below the national average.
Something else investors find an attractive is the median home price that is currently around $99,000. When all of the factors are combined, real estate investors find a great opportunity to invest in a world-class city, with a first-class economy, and a bright future. Your investment will lead to multiple positive cash-flow properties as you expand your portfolio to include Memphis.
Memphis should be your destination city for out of state investing. Besides meeting with a property management reprehensive and viewing properties, your visit to Memphis will be an excellent working vacation. You have Graceland, Beale Street, the home of rock n Roll, home of the blues and probably the best BBQ restaurants you’ll find anywhere. From shopping to nightlife to great restaurants to a great investment opportunity, you’ll find Memphis to be the place you want to be and come back for more.
Bron: Realty Biz News, mei 2014