While international investor are likely familiar with America’s coastal cities, the mid-west remains a bit of a mystery. International investors as a whole seem to be less willing to enter these markets, not due to some weakness in the fundamentals of these economies, but because investors are unwilling to leave their comfort zones. Images of Californian beaches or the lights of Las Vegas bias investors towards risky and highly competitive markets. For investors willing to go the extra mile and research cities a little further inland, there represents an opportunity for massive returns at very little risk.
With a population of over 1.3 million inhabitants, Memphis is the second largest metropolitan area in Tennessee. Unlike many of the markets in which US Invest operates, Memphis’ affordable housing prices are not directly connected with the speculative craze which rocked the US property market. Memphis was affected mainly by the slowdown in the macro business environment that resulted from the financial crisis. This is because Memphis is an economy which is concentrated in sectors which are procyclical in nature.
Memphis’ economy is concentrated in two main sectors: the Trade, Transport & Utilities sector and the Business and Professional services sector. Both of these sectors move very closely with the health of the macro economy. As an international investor, this proves to be a rare and valuable attribute. Since Memphis’ economic health will mirror that of the US economy as a whole, it will be very easy to monitor your investment. This will prove invaluable when deciding to exit the market. Instead of having to dig up information specific to Memphis, you need only to track articles which cover the health of the US economy as a whole to predict how your investment will perform.
Memphis is one of the nation’s largest distribution hubs, since it lies within 500 miles of nearly 1/4 of the urban working population of the United States. This has prompted many Fortune 500 companies to open assembly plants in Memphis and it is the reason FedEx has chosen Memphis as its global headquarters. A thriving business services sectors has sprouted up to service the needs of the local operations of these major companies.
At the end of the day, Memphis’ strength lies with the reliability of the economy which stems from solid investment in its infrastructure and its strategic geographic location. As long as international commerce necessitates the transportation of goods and materials, the Memphis economy will remain strong and flourish.
Memphis Buy And Hold is 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