Memphis Coming Back To Life With Robust Profit And Sustainable Communities

Memphis is coming back to life with robust profits reported in the Tennessee banking industry and a drive to create sustainable communities. This progressive economic and urban regeneration is not yet enough to boost the local residential housing market, but is making Memphis particularly desirable to investors.

Why Memphis? Why now?

The area continues to provide rich pickings in foreclosed property. The indigenous market is not yet wealthy enough to snap up the foreclosures, but local buyer resales will be boosted as the economy recovers over time. The urban regeneration will also boost the residential attraction of the area. In particular, part of the sustainable community drive is to assist with federal funding and government incentives. This will, over time, help the local market to start purchasing property again. These combined factors provide investors with a ready-made tenant market and short-to-medium term resale options.

Tennesse banking industry starts to recover

Figures from the Federal Deposit Insurance Corp. (FDIC) report approximately one third (57) of Tennessee's 191 federally insured banks were in the red or reported flat earnings in the second quarter of 2010. This is an improvement over the first quarter, when over half (97) of the FDIC backed banks reported either flat or negative earnings. It is an even bigger improvement over the second quarter of 2009, when more than 70% (139) of the state's banks were stuck in a rut of unprofitability.

Kirk Bailey, chairman and CEO of Memphis based Magna Bank, Explains: "We do see some signs of improved economic activity, but it's not enough to believe the economy is out of the woods yet. Residential housing sales have slowed down considerably in the past 90 days without federal stimulus and it appears the federal government is reluctant to continue providing stimulus dollars without an identified funding source."

Sustainable community spirit

Step up The Sustainable Community Initiative and Choice Neighborhoods Initiatives, which have joined forces. The intention is to unite various federal agencies and help the area's government incentives run more smoothly and efficiently. The Sustainable Community includes Housing and Urban Development, the Department of Transportation and the Environmental Protection Agency. Choice Neighborhoods is made up of agencies such as Health and Human Sciences (HHS) and the Department of Education (DOE). Together they will nurture healthier, more inclusive communities, improve transportation and promote a clean energy economy. Rehab housing, education and employment training will also be covered by the joint drive.

Emily Trenholm, executive director of the Community Development Council of Greater Memphis, comments: "The federal funding environment has undergone significant changes, causing a stronger and more formal emphasis on partnerships. We need to help our organisations as a community get up to speed. It is really designed to help us, as a community, to be competitive in this new federal funding environment."

Karla Davis, director of urban strategies for Memphis Hope and a member of the joint committee, adds: "It is essential for members of the community to maintain a living for themselves and their families. Neighbourhoods can become more sustainable by the community providing a place for people to live, work and play, safely and affordably."

The sustainability conference is to take place on 22nd September at the University of Memphis' Fogelman Executive Conference Centre.

Act fast for Rapid Cash Profits

The Rapid Cash Profits strategy was tailor made for Memphis and the time to act on it is now. Memphis is a recovering area and wise investors are snapping up foreclosed housing and completing efficient refurbishments, ready to rent and then resell into the flourishing community.

Investors are being advised to act fast to take maximum advantage of this profitable time.

If you are ready to invest in the USA and want some advice and assistance on how to benefit from Memphis property investment today, pick up the phone and talk to Greg Glagow, Axis USA Portfolio Manager, on 0333 444 1440 for a no obligation initial discussion. Or check out currently available USA investment opportunities here. To learn more about US property investment in general, please download the Axis USA Investment Guide.

Live with Abundance

Rod Thomas FCA  

Posted in Property in Memphis

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