Did you know in the United States there are around 50 million renter-occupied homes?
The housing market is an attractive proposition for investors because prices rise over time. Investing in property is a sure-fire way to increase your net worth.
But there are different types of housing markets, and you can expect different types of returns on investment in those markets. So it’s critical that you choose carefully when selecting housing investment properties.
If you’re thinking about investing in the Tennessee housing market, there are some characteristics that you should look for in the major housing markets in the US. The Tennesee real estate market is one that has performed well for investors and is expected to continue doing so.
Here’s a look at the Tennessee housing market and why it’s an attractive option for housing investors.
Types of Investing
There are a few different ways you can invest in property. Take your time reviewing each option and then choose the one that appeals to you the most.
Fixer Upper
The first option is to buy a property that needs some renovations. You’ll want to buy your Tennessee property below market value, make some changes and sell it quickly.
Common renovations include upgrading the kitchen and bathrooms and creating an open concept floor plan. You don’t want to hold on to the property for too long because you’ll have to start paying for the upkeep which will decrease your profits.
Buy and Hold
The buy and hold strategy means you’re in for the long haul. You’ll purchase a property with the intention of renting it out and collecting income. Right now the homes in Tennessee are selling for more than the yearly average. This trend is expected to continue so now is a great time to buy to make a profit.
Short-Term Rentals
Short-term rentals are another great option for you, as a real estate investor. People are flocking to Tennessee for vacation. You charge more nightly if you lease out your property short term. There are many resources for investors who want to take advantage of this option.
If you are looking to lease out your property for a short amount of time but not on nightly bases there are other options too. Many people who travel for work such as traveling nurses need places for weeks at a time.
Tennessee Real Estate
Memphis and Nashville are great places in Tennessee to invest in. They both have a high demand for housing and people will may more to live there.
There are specific times of the year that are better to buy a house in Tennessee. If you want to buy your investment property at the lowest price January is the best month of the year. People are just getting settled after the holiday season and January is the middle of the school year for families with children.
It’s often more expensive to move during January as well due to weather conditions. This lowers the housing prices making it a great time to buy. There are often more houses to choose from as well.
However, the best time to get the lowest mortgage rates is in December. In the last year, the number of housing for sale rose by 5.0% and the and home prices rose by about 25%
Tennessee vs. United States Stats
It can be helpful to compare the Tennessee housing market to the national average. Tennessee’s average rent is around $850 and the nation’s average is a little more than $1,000.
Property taxes can also make a difference when you are making your investment decisions. The state’s average property taxes are $1,190. However, some cities will have significantly higher taxes than others.
The nation’s average home price is $46,300 more than Tennessee’s average. Home appreciation rates are up from the last few years as well which is a good sign for all property investors.
Housing prices are not expected to fall anytime soon, so buying a property now is a good idea. However, the rate the prices are increasing by is expected to slow down a bit.
First Steps to Take
If you are ready to start investing in real estate, find a great real estate and management company to work with. Working with a reputable company will increase your chances of finding the perfect property. It will also help you maximize your profits.
Setting a budget and goals should be a priority before you finalize your purchase. You need to be prepared for the following steps.
Finding a mortgage company will also help you through the home buying process. They will be able to advise you on the best loans for your goals and financial situation.
Tennessee Housing Market
If there was ever a time you should be investing in real estate, it is now! In fact, 2022’s housing market is predicted to be the best year to invest in the last ten.
Investing in the Tennessee housing market is smart for several reasons and the number-one reason is that housing is a necessity. People need a place to live. This means that housing will always be in high demand, meaning there will always be a buyer for your investment.
The work has been done for you, too. Many houses, including investment properties, will be on the market this year and the next. Going into 2022, it remains a strong market for buyers as well.
If you are ready to start gaining passive income, contact us today and we will assist you and answer all your questions