Property Investment Tennessee Factors
Tennessee has a great climate and offers many recreational opportunities. In addition, the state has the lowest cost of living in the entire United States. The unemployment rate is also lower than other US states, and the standard of healthcare facilities is also exceptionally high. However, there are some key factors that investors should keep in mind before they invest in Tennessee.
Foreign Investor Presence
More than 934 foreign firms have invested approximately $ 35 billion in Tennessee, which has led to 138,000 jobs. The automotive industry drives the foreign direct investment of the state.
Rising Home Values
The median home value of Tennessee has seen an 8 % increase since 2017. Even though right now the state home median value is lower than the national average, experts predict that it will soon rise. The steady rise in the home median value will open up property investment opportunities for investors.
High Sales Taxes and Flat Rent Rates
The median rent prices in Tennessee are low; they are lower than the national average, and they are not expected to rise anytime soon. Property taxes are also low, as they have an average effective rate of 0.75 %. However, the sales taxes in Tennessee are the highest of any other US state.
Exceptional Healthcare Facilities
Tennessee has a strong healthcare network, which is why it is an attractive spot for families. The healthcare business in the state has over 400 businesses and adds $ 30 billion to the local economy. In addition to the revenue, the healthcare sector generates, it has also created 210,000 jobs locally. As a result, Nashville was ranked among the best US cities in 2017.
Retirement Friendly
Tennessee is lenient when it comes to taxation, so many retirees are attracted to the state. Currently, there is no state income tax levied upon the residents of Tennessee, and social security is also untaxed.
Opportunities for Property Investment for Sale Tennessee
Currently, there is no shortage of properties in Tennessee, and the conditions are also favorable. Therefore, new property investment opportunities are available regularly. Some examples of the type of property investment in Tennessee are:
- Recreational retreat for sale in Perry County, TN
- Investment and income property for sale in Mckenzie, TN
- 46 Acres of unrestricted land up for sale in Greene Co., TN
- Horse farm for sale in Williamson County, TN
- 7.5 Aces unrestricted land for sale in Whitesburg, TN
There is a lot of variation in property investment in Tennessee, so investors will have plenty to choose from. The rates are quite high and are expected to stay that way so that the investment will be profitable.
Investment property Mortgage Rates in Tennessee
Right now, the investment property mortgage and refinancing rates are below the national average. For a thirty-year fixed mortgage, the rates currently stand at 3.02 %. The rate is at 2.31 % for a fifteen-year fixed mortgage, and the rate for Adjustable Rate Mortgage (ARM) sits at 2.75 %.
- Loan Monkey: 2.875 % (30 years Fixed) (APR: 3.044 %)
- Quicken Loans: 2.876 % (30 years Fixed) (APR: 3.024 %)
Blue Spot Home Loans: 2.999 % (30 years fixed) (APR: 3.004 %)
Property Investment near Me
Murfreesboro, Tennessee
Just 34 miles off Nashville, a small town called Murfreesboro is a good place for property investment. This town has a population of less than 100,000, and in the past four years, the home prices have skyrocketed, currently sitting at $ 240,000. In addition, rent prices are climbing and are expected to remain high in the future as well.
Knoxville, Tennessee
Knoxville is situated in the Southeastern corner of Tennessee and is a tourist hotspot. This city has seen a sharp increase in median home value over the past few months, and since February 2019, the rent average has been $ 250 and is rising. Knoxville is also on the list of the best cities to live in after retirement.
Germantown, Tennessee
Germantown is a suburb of Memphis, and in the past three months, the rental prices in the suburb have been rising, with a total increase of $ 400. Therefore, the rising rent prices present a good investment opportunity.