With purchase prices relatively low compared to local rents and purchase prices very low in Memphis compared to other foreign markets, foreign investors have been pouring into Memphis from New Zealand to Italy to China since 2011. Today the market remains strong. Some investors buy to have a second home with the security that the Memphis market offers that can’t be found in foreign lands. Others prefer a turnkey rental in one of the best rental markets in the world. And still others are rehabbing and flipping houses. The Memphis real estate market offers opportunities for all investment models.
What Makes the Memphis Market So Attractive to International Investors
French explorers first build Fort Assumption in 1739 on the site that would eventually become the city of Memphis in 1819. Future U.S. President Andrew Jackson was among the founding fathers of the city.
There are many reasons this particular site was picked to establish Memphis. Among them is that it is located on the Mississippi River nearly mid point between the Ohio Valley and New Orleans. It wasn’t long before it grew into a valuable river port and trading center.
Memphis is one of the best kept secrets for savvy international investors. Investors are finding the affordable entry level prices for investment real estate to be more attractive than almost anywhere else in the world.
Why the Memphis Market is Stable and Thriving
Memphis has one of the highest percentages of renters in the nation. But that doesn’t mean quality renters don’t want to live in a nice house in a good neighborhood. The investment property you want to buy should be in a safe, secure neighborhood, close to shopping, have good schools, and other amenities such as entertainment that are desirable to tenants. These are the type of investment houses that flourish in Memphis.
Where you will maximize your profits and minimize your risks are houses that appeal to middle-income working class people. In Memphis, prices for these houses generally range between $40,000 to $80,000. Your investment will cost less and your return on investment will be the greatest.
Memphis has more than it’s share of major corporations, including International Paper, FedEx, AutoZone, First Horizon, St. Jude Hospital, and others. Memphis is also home to the University of Tennessee medical and dental schools. All of these and more add up to a stable rental market.
In addition to being an air cargo hub for Fedex, Memphis is the third largest railroad hub in the country, which Warren Buffet recently saw fit to invest in. The Memphis River Port is the second largest inland port on the Mississippi River, connecting Memphis to 25,000 miles of interconnected inland waterways. Memphis is a mega distribution hub with eight federal highways, three interstate highways, and seven state highways making trucking to the rest of the country easy from the railroads, waterways, and air cargo hubs.
Memphis is ranked number one for property appreciation by Moody’s Case Schiller Index. Moody’s projects houses in Memphis will appreciate 18.8% over the next four years.
Memphis is and will continue to be a destination real estate investment market for international investor for the foreseeable future.
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