When looking at any investment you need to make sure you have done all the research needed to give you assurance to make that final pitch into the investment world, after all you worked hard for this money.
A good starting point when looking at Property Investment is to study the prospective in specific areas, here are some few factors to take into consideration, of particular note is the support from the government not only to the city of Memphis but also to the rental method known as Section 8.
Memphis is the 17th largest city in the USA and is home to 1.2 Million people. Due to the current economic depression, mortgage lenders are recovering thousands of homes per month across America. Tennessee ranks ninth on the national list of foreclosures with 1 in 49 homes in foreclosure. This has led to a deficit of affordable housing and large numbers of families needing affordable good quality homes, thus creating the perfect break to take advantage of Memphis property investment.
Home for Big Businesses
Memphis is home to many Fortune 500 companies such as FedEx, AutoZone, ServiceMaster, Thomas & Betts, Medtronic and International Paper. FedEx’s World Headquarters alone employs 30,000 people. Memphis is known as ‘Americas Distribution Centre’ with more than 600 trucking companies and the Worlds’ largest cargo airport.
Property prices have bottomed out; there has rarely been a better time to buy in the USA. In relative terms prices are possibly cheaper than at any time since the great despair of the 30s. However, according to the Urban Land Institute’s presentation of Emerging Trends for Real Estate in 2009, Memphis is now well positioned to see steady and consistent growth over the medium to long term.
Huge Government Backed Rental Demand
More home foreclosures, fewer home buyers and stringent mortgage lending criteria mean that rental demand is drastically increasing in Tennessee. The Metro Memphis area is home to 1.2 Million people, with 45% of the population renting. In addition to private tenants there is also a large number of tenants approved with the Department of Housing and Urban Development for the subsidised rental program known as ‘Section 8’. Due to the shortage of suitable homes there is currently a 6-9 month waiting list of tenants for the program.
‘Hands Free’ Property Management
Our recommended Property Management Company offers investors a completely hassle free service. Their proactive property management style really helps make investments made thousands of miles away seem like next door. Every investor will be given a unique username and password so you can log on at anytime to see statistics on your home, such as when the rental was paid or when your property was last inspected.
Tenants who will look after your property
The Department of Housing and Urban Development (HUD) is responsible for managing the government’s subsidised rental programme and they operate a zero tolerance policy. This means that if a tenant is evicted from their home for any reason they automatically lose entitlement to the programme in the future in any US state. Tenants are therefore responsible for the general welfare of their home and this system ensures that they take care of the property and treat it as if it were their own.
Derrick is a Memphis native specializing in locating, purchasing, renovating and managing single-family and multi-unit properties and possesses over 8 years of experience in real estate investing and property management in the Memphis and Nashville markets… Learn More…… www.memphisbuyandhold.com