For the last 6-9 months real estate pricing has been slowly on the rise. Now the interest rates are starting to creep back up as well and many investors who purchase investment property using bank financing are starting to take notice. Rates for the longest time have been on the high 3% low 4% range and now they are back over 5% on average for investment property loans. You should be able to get a slightly better rate if you put down 25% as opposed to 20%. This increase should be a signal to investors that now is the time to buy while rates are still down. Though the concern among investors, you have to realize that 5% is still low. My first two properties I purchased back in 2008 have rates of 6.75%.
Property pricing has also risen due to many factors in the market. Hedge funds and affiliates are just a few factors that are making the increase in price go up. The demand for investment property being at an all time high has contributed to the price increase as well along with the overwhelming demand from wholesalers all competing to buy the same foreclosed houses. Memphis real estate has had a strong rental market which has kept Memphis one of the top markets to buy property in even with the increase in price and interest rates. With almost 50% of Memphis population renting, there will always be a need for rental property. Bottom line is that you need to be buying property and the time is now.