4 Important Lessons for 2016 from 2015 Memphis Real Estate Investment
Memphis real estate business is at an all-time high. A new report from Wall Street Journal stated –
“In a nod to the youngsters, the survey found that the top markets offering “the right live/work/play environment” for millennials were Nashville, Brooklyn, Portland, and Memphis.”
And not just that! Memphis has again named as one of the most affordable cities in the U.S. by Forbes. Ranked as #2, Forbes stated Memphis as a great place for entrepreneurs with a housing opportunity index of 78.7 and a cost-of-living index of 91.8.
But what brought this welcome change are the changing trends that have been going in the market. These changes can teach and guide real estate investors
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Lesson #1 Single family homes are hot
Based on the annual rate of return, a Wall Street Journal article has rated Memphis as the number one city for investors who want to buy and hold single-family homes. The study was based on data collected by the foreclosure tracking firm RealtyTrac.
Investors are renting out single family homes especially the typical three-bedroom house. An average 3 bedroom single family home in Memphis has a selling price of $72,605 but the quotes are already increasing.
The average rent found by the study for these single family homes is $1,047and the average monthly positive cash flow is $628, which according to the WSJ is a very generous rate of return that was on a steady halt for the past four to five years.
Lesson #2 International Investment is on peak
Data has shown that international sales and investing are strong across all Memphis real estate sectors. International developers and investors are increasingly investing in the Memphis market as it is stable, affordable, and the return on purchase is quite high.
An example of international investors who are investing in the market since a long time is the Israel-based Faropoint