In the non-bubble market, Memphis Real Estate will go any length to ensure you can afford the house it is offering you–so invest and you’ll be glad you did. Single family homes in Memphis typically cost less than the U.S. national average. It has also grown into a suburban city. When you compare 43% of Memphis rent with 33% of U.S. cities you will see that investing in rental property in the Memphis real estate market is more rewarding. In addition, there are less homeowners than renters in the Memphis area leaving plenty of tenants to reduce vacancy periods across the greater-Memphis area.
Here are the 5 reasons to invest in Memphis real estate
1. Job Growth & Development
According to several reports, Memphis has a very high job growth expectancy. Presently, many companies and businesses are moving to Memphis for a fast production and distribution process and also to save on shipping cost due to Memphis’s central location. In addition, Memphis is home to Nike, International Paper, FedEx headquarters and two new Amazon distribution centers, amongst many others. The government has incentivized these companies to attract them to Memphis to aid in the employment opportunities across the area. Jobs are indeed readily available with these companies; this step taken by the government to ensure jobs are readily available is worthy of commendation. Another reason for you to invest!
2. High Affordability Tax
In Memphis, it is more costly to rent a house than to buy one however the overall financial posture of tenants prevents many from purchasing a property leaving them to pay into the rental market. That being said, it is possible to buy a house and see immediate rental income with a higher rent than your mortgage. The houses in Memphis are affordable which is why now is a good time to invest in Memphis real estate.
3. Landlord-Tenant Laws in Memphis
At Reedy and Company, we advise our investors to get familiar with the landlord-tenant laws of the state they want to invest in. In Tennessee, landlords have the liberty to charge any amount for a security deposit. Also, the landlord-tenant laws of Tennessee provide support to landlords making it possible to evict, within a reasonable timeframe, if needed. For instance, a landlord may give a Tennessee tenant quit notice that leaves the tenant just 14 days to pack out before eviction is filed if the tenant has repeatedly bridged the rental agreement or done an act that affects safety and health (note that a notice must have been issued to the tenant after the first violation). Reedy and Company has a dedicated in-house collections department that is in place to manage this process for you, alongside an in-house legal team.
4. High Property Appreciation Index
The best place for appreciation of property is Memphis, TN, according to Moody’s Case Schiller Index. In Memphis, $82,600 is the average value for a home. Last year, there was a 4.3% increase in Memphis home values, this is predicted to rise within the coming year by 3.4% according to Zillow.
5. Connectivity to Surrounding States
Trucking from Memphis to other parts of the country is easy whether by waterways, air cargo or railroads as it has 7 state highways, 8 federal highways and 3 interstate highways. This is one of the major reasons that large companies like Nike, Amazon and FedEx who depend on easily accessible transportation methods.
If you’re interested in Memphis investment properties, Reedy and Company is here to help! You can rely on our team of experts to guide you to the best real estate investments available, so you can always get the most value for your money. Reedy and Company provides a full service package to our investors, and helps them reduce management problems by offering in-house maintenance and rehab crews, a quality leasing team, collections department, excellent and dependable communication, and full accounting.