Billionaire Mayor of New York City, Michael Bloomberg has chosen Memphis as one of five cities whose Mayor's he is supporting through an initiative at his Bloomberg Charities. The Grant is designed to assist Mayors who are in the first 18 months of their terms and are in unique positions to not only tackle problems but also have a willingness to work together to share what is working and what is not.
Memphis, Tennessee - Chandler Reports, the leading provider of real estate data, research and consulting information in the West Tennessee area, released the final numbers for real estate transactions in the Memphis area for February 2011. After leading the Memphis greater metropolitan area for home sales in 2010, Memphis Invest has started 2011 strong leading both January and February in home sales.
Mortgage interest rates continue to rise on almost a weekly basis, according to information released by Freddie Mac. The average rate on a 30-year fixed mortgage jumped to 5.05 percent last week. That is the highest the rate has been in over three years and is the 6th straight week that the rate has gone up.After seven months of declines that put the benchmark 30-year rate at a half-century low last year, the rise in rates has driven down demand for financing and is leading mroe and more investors to seek alternative forms of mortgages. The Mortgage Bankers Association ( MBA) reports on an almost weekly basis that the demand for morgages continues to set new lows each week.
With analysts warning about continued hike in rates, any stall in home purchases will have a chilling effect on an already fragile housing market. What these trends are allowing for though is a huge increase in cash investors entering the market and driving bargain prices even lower.
Freddie Mac’s study, which is based on data gathered from about 125 lenders across the country, tracks rises in rates across the board. Every loan porduct, not just the 30 year mortgage showed increases.
Each week, Bankrate surveys a panel of mortgage experts for their predictions of which way rates are headed over the next seven days. In a landslide, 80 percent of the panelists are calling for continued increases in mortgage rates. Just 13 percent forecast a decline in mortgage rates, and 7 percent expect no change over the next weeks.
With economic predictions like these, I would say it is definitely time to use your alloted number of mortgages for real estate investing while the money is still cheap. As long as the property produces a strong cash flow, get the best rate and term you can while rates are still at these historic lows because many economists also say these rates will most likely not be seen again for a very long time!
I talk to real estate investors every single week who are interested in investing in Memphis real estate with MemphisInvest.com for a lot of different reasons. Some of the most interesting investors I talk to though, are those who are highly diversified in other markets. They own stock portfolios or invest in Bonds and Mutual Funds. They have spent years with financial planners preparing for a day that now seems in jeopardy: Retirement! Most of these investors are turning to a tool that their "advisors" failed to teach them about - Self Directed Retirement Accounts. With the right real estate investments at all time values, the focus to investing in real estate with your retirement account could not have come at a better time.
It is funny sometimes to get the reactions of investors when they hear me talk about diversification in Memphis real estate because they are not used to hearing those terms come from real estate investing companies. Maybe from professional stock brokers or stodgy old men in black suits discussing the economy in terms most of us would never use. But in truth, diversification in your real estate portfolio is very important and can oftern mitigate the over all risk you take as an investor.
Having talked to hundreds of investors each year at Memphis Invest, I have stopped being surprised by the different reasons investors list for purchasing investment property. Often times, the criteria that investors use to determine a"good deal" are as varied as the colors in a box of crayons. As a seasoned investor, I can tell you with atuthority, that if I had to choose one measure for an investment deal it would be its cash on cash return.