Memphis. It is one of the biggest cities in Tennessee, and it could be an opportunity for you to buy real estate. The city often gets overshadowed by Nashville, but some excellent opportunities are waiting for you here. In the second quarter of 2022, the average selling price of a home in Memphis was over $256,000. So, why should you buy Memphis real estate?
Will the market trends in this city be in your favor soon? Here are seven reasons to consider buying Memphis properties.
1. A Market That’s on Fire
One of the biggest reasons you should consider jumping into Memphis real estate is the red-hot market.
To prove this, take a look at what the average home value in Memphis has been over the last five years. You will notice that the average home has increased in value by almost $100,000 in just that period.
If you want to look back even further for proof, look at the trends in the Memphis real estate market since 2012. It has gone nowhere but up over the last decade.
The Memphis real estate market has proven over the last decade that it is a rising asset. You can take advantage of this hot market by buying property there yourself.
2. Cheap Location
Another benefit for you is that Memphis is considered one of the cheaper cities for the cost of living in the United States. Memphis was ranked the 18th cheapest city in America, with 50,000 or more people living in the metro area.
This is a good thing for both buyers and investors. It is good for you because, with this being a cheaper location, you may have more opportunities to expand in real estate investing. In other words, a cheaper location makes it easier for you to buy more properties quickly.
It is also a good thing for the average buyer or renter because some buyers may feel priced out of a more expensive city. A perfect example is those considering Nashville but found that area too expensive.
Memphis may make it more appealing for those buyers and renters just looking for a cheaper cost of living than where they are coming from.
3. Renting Opportunities
One major thing you can do with an investment property is rent it out to other people. In Memphis, the rental market has been booming over the last year.
At one point, the average rent in Memphis increased by 73%. It is not abnormal to see at least 50% rent increases in specific apartment buildings over the last two years.
With that kind of return, it is certainly a great time to be a landlord in Memphis. You can easily find tenants in this market and get some passive income from a property in no time.
4. Airbnb Opportunities
Going along with renting your property out, you can also make it a vacation rental and put the property up on Airbnb. This can be a great way to make short-term rental income.
It works a little differently than the above because you are accommodating people staying for a much shorter period. However, if you ensure that your apartment is constantly booked, you could make more money going this route.
Best of all, you can use a property manager to help put your place on the market. Plus, they can manage the people coming in and out of your apartment building.
5. Steady Population Growth
Memphis also benefit from seeing a steady growth in population. Over the last six years, they have gained 54,000 residents in their area.
That means that you have more options for who you can rent or sell your property to as a property investor. Given the statistics in that link, there is no reason to assume that the population of Memphis is going to decline anytime soon.
While the growth has not been as big of a percentage gain as it has been in past years, it has still shown to be stable and continually growing.
6. Low Property Taxes
With Memphis being located in Tennessee, property taxes are a big incentive for you to invest in this state.
This is because Tennessee has one of the lowest property tax rates in the United States. Their property tax rate is 0.64%. Meanwhile, states like New Jersey charge nearly quadruple this percentage.
That means people who own property in Tennessee pay less than half the national average in property taxes. If you want to hang onto a property for a while, the state’s property tax rate can be a big incentive.
7. An Iconic Music City
Take advantage of the fact that Memphis is a music city known for blues and even a little rock ‘n roll. It has Graceland, Elvis Presley’s home, the Rock ‘n’ Soul Museum, and more.
This is good for you because some visitors may want to experience these musical sights. Plus, renters may be drawn to this city due to those aspects.
Talk With Us to Buy Memphis Real Estate Today
These are just seven of the reasons that you should consider buying Memphis real estate. The market is still hot, and if you plan on flipping it or renting it out, there are plenty of opportunities. Do not forget to consider affordability and other peripheral factors like low property taxes, population growth potential, and the city’s attractive music culture.
Are you looking into Memphis properties? Do you need property management assistance? Message us today to see how we can help.