If you read the newspaper, surf the net and watch tv then you like everybody else has been tidal waved with negative economic news. Our economy is based on investments and in my view investments are long term; fast cash is an easy way to economic disaster (personally and nationally)! Whether it's stocks, bonds, mutual funds or real estate investments they should all be long term investments. I'm not talking about flipping properties, I'm talking about true real estate investments, the ones you live in or make a return on; single family residences, condo residences and multi family properties. Purchasing a home or condo for self use is a fantastic way to start your personal wealth building. Currently, mortgage loans are available with as little as 3.5% down through FHA with rates under 6%. This is a great deal. I'm not talking about sub-prime deals, I'm talking about people buying well within their means for the purpose of having a roof over their head and letting the property appreciate over the long term. Conventional mortgages are also available with as little as 5% down. So, when you think about it 3.5-5% is a great good faith amount that works for you in two way: One, you start your wealth building and two, you get the pleasure of using your investment. Imagine that you invest $10,000 on a housing down payment today, in 5 years (long term) what will your investment be worth? Factor property appreciation, mortgage pay down, tax & interest deductions plus your personal benefits of living in the property and you have built up a solid investment.
Downtown Memphis real estate is, in my opinion, a very solid investment for many reasons. We never had the huge peaks and valley's in our market's appreciation. We never had mass amount of speculators buying and flipping properties. Our sales prices are relatively low as compared to other major cities and we have many major draws to our city, both entertainment and financially.
Don't let the news get you down, our local downtown Memphis real estate market is a solid investment and if you have questions or comments contact me or feel free to post.
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Take a look at his article about downtown Memphis real estate from the Memphis Business Journal:
http://memphis.bizjournals.com/memphis/stories/2008/09/01/story3.html
The article discusses how sales have remained constant when compared to last year, while prices are continuing to rise. As demand for urban real estate continues to rise, prices will surely follow. Interest rates are at historical lows (Another .5% reduction today), sellers are eager to make a deal, and supply is high. All of these individual components combine to form a great Buyer's market. As energy costs continue to soar, more people will look for ways to reduce overall living costs. This too will add to the demand for urban living options. I believe we will continue to see downtown prices rise as the number of available properties shrink.
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