Middle Tennessee – A Choice Market for Home Investors

2015/05/nashville-real-estate-300x178.jpgNashville Tennessee is slowly becoming the choice for many home investors for purchasing housing units, especially single-family homes for rental purposes.
A newly published report states that the housing market in Nashville sits in the No. 4 position among the top 10 residential housing markets in the U.S. for investing in single-family housing options.
Properties in many cities across the nation have become the focus of many investment companies. The main reason is that these investment companies are buying the properties solely as long-term investment options. These investment firms are not just flipping the properties but are leasing them while they wait for home values to recover fully.
What is it that makes Middle Tennessee real estate the ideal market for investing in single-family housing options? According to Ingo Winzer, the founder and president of Local Market Monitor, which tracks prices for local housing, the Middle Tennessee Real Estate Market is the right market because of its low employment rate, job growth rates, and vibrant population including the fact that the prices for homes are averaging 16% below market value.
American Homes 4 Rent is one company that has a portfolio, which consists of over 900 housing units in the Nashville area. A company filing for the third quarter of 2013 reports that these 900 homes or more have a cumulative value of over $180 million. As a real estate investment trust of B. Wayne Hughes, a Californian billionaire and Public Storage Inc. founder, American Homes, intends is to acquire, renovate, lease and operate single-family housing units primarily as properties for rent.
The hunt for housing units is in full swing as many other investment companies are buying U.S. houses for the sole purpose of renting them out. However, American Homes is the main investment firm in the middle Tennessee area. The investment firms are focusing on purchasing foreclosures and other troubled properties, most often at very low discounts, especially in states hit the hardest by the housing decline. The sharp decline in property values not only affects Florida, but also has now become a factor in other cities including Nashville.
Investment firms expect that the demands for single-family rental will remain strong for future years since young people are not in a hurry now to buy homes. Other factors include increased college loan debts, tight credits, sluggish job market and weak wage gains. All these are causing potential first –time homebuyers to delay buying their own home. Consequently, people will continue to be long-term renters, so say the experts.
Nashville is definitely not a well-known market nationally. Bob Parks, the CEO of Bob Parks Reality, states that rental properties are generating strong returns in Nashville. To some extent, Nashville tends to be the upcoming investment opportunity. The rental market is vibrant with owners of no more than 10 properties making great returns on their investment. Now is the ideal time for small, mid-term or large investors to “plug” into the Middle Tennessee, because here they can generate great returns on residential properties.