The median price of a home in Tennessee went up by $89,000 in the last year. Memphis real estate continues to be a great investment even as prices continue to rise. But what do you need to know about the Memphis real estate market before you take the plunge?
Let’s take a look.
1. Continued Growth
Memphis was recently ranked as one of the top five fastest-growing real estate markets, and it’s no surprise why. Job growth has been impressive, especially in construction, manufacturing, and business. Major employers such as FedEx, Autozone, and International Paper continue to bring folks to the area.
Tennessee is a popular place for those looking to relocate due to the fact that it’s one of the nation’s nine states that doesn’t have an income tax. There’s also a low cost for everyday goods and services.
Still, there’s no shortage of things to do in the Greater Memphis area. Music lovers will appreciate the outdoor concerts, open mics, and smaller venues where they can hear rich classic songs and fresh new acts. Foodies can appreciate barbeque and soul food like you won’t find anywhere else.
Memphis has plenty to offer history lovers, entrepreneurs, and busy families. As remote work becomes more popular and individuals are able to move anywhere in the country, mid-sized cities like Memphis continue to draw those interested in the thriving city lifestyle without the crowds.
2. Strong Renter’s Market
Many out-of-town investors are interested in areas like Memphis because they can easily rent them out. In fact, over 53% of properties in Memphis are currently occupied by renters.
Memphis continues to draw young professionals, retirees, and families who may be considering living in the area but aren’t yet ready to buy. If you’re considering purchasing an investment property in the area, a reputable property management company can help you with things like repairs, rent collection, and marketing.
3. Know Your Neighborhoods
Like any other vibrant city, Memphis is made up of neighborhoods, each with its own distinct flavor.
Midtown, for example, is at the heart of the city’s cool and funky lifestyle. You’ll find plenty of affordable apartments that artists and hipsters love to populate. Yet historical homes with wraparound porches are easy to find as well.
Bars, cafes, and international food options abound in midtown. You can also enjoy nature at Overton Park, where you’ll find running trails, a golf course, and the Levitt Shell Amphitheater.
Cooper-Young is another neighborhood popular with families and artists. Renters will find plenty of craft beer, vegan cafes, and museums to keep them busy in the area. And homes for rent include single-family homes as well as affordable apartments.
Downtown Memphis has a decidedly different feel, with lots of office workers during the day. Yet the evening features plenty of blues clubs, restaurant patios, and movie houses. Residents can also enjoy gorgeous views of the Mississippi from the Beale Street Landing.
Apartments for rent in Downtown Memphis are a bit more pricey compared to other parts of the city. It remains a popular spot for young professionals as well as retirees.
Harbor Town is located on the northern edge of Downtown on tiny Mud Island. It offers more of a casual neighborhood feel. Residents can also take full advantage of Mud Island River Park, where they can ride paddle boats.
With homes in the area being a bit more pricey than most, homes in Harbor Town tend to rent for a bit more. The area continues to be a draw for well-to-do families and empty nesters.
4. Consider Turnkey Real Estate
If you’re an out-of-town investor, you may want to consider a turnkey home if you plan on renting. This will enable you to begin turning a profit right away because you won’t need to fix anything before inviting prospective renters to apply. It’s also a great way to avoid any major repairs if you aren’t going to be living in the area.
While turnkey properties are a bit more expensive, you’ll find your investment paying off right away in today’s market. Even still, it’s important to visit the property yourself before you purchase it. You’ll get a genuine feel for the neighborhood, as well as the demographic you’ll likely be renting to.
You’ll need to do a little research to get a feel for your ability to rent out a place. For example, if you’re purchasing a single-family home suitable for families, is there a good school district in the area? Are there parks, museums, and shopping nearby?
If you’re looking to rent to single professionals, make sure you check out things like transportation and nightlife. Try to put yourself in the shoes of your prospective tenants. If it seems like a great deal to you, it probably will to someone looking to rent a quality apartment.
5. Know Local Laws
Before investing in a Memphis property, it’s important to know about the landlord-tenant laws in the area. This is something else a qualified property management company can help you with.
For example, Tennessee does not limit the amount of money a tenant can charge for a security deposit. You won’t, however, be able to end the lease arbitrarily before it expires. In general, the laws in the area tend to favor the landlord, which makes purchasing a rental property in the neighborhood a bit more appealing.
The Value of Memphis Real Estate
Real estate in Memphis TN has so much to offer investors. In a booming market, properties in mid-sized cities near lots of entertainment will continue to be a great buy. Do your homework and find out how you can make Memphis real estate work for you.
For more information on properties and management in the Memphis area, contact us today.