Buying a home is a smart investment now. Real estate mortgages are low hovering around 3.27% ranges while rent costs continue to rise. For example, over the last six months Nashville Tennessee one bedroom rental apartments increased by $65.5 to $832 per month (8% increase) and two bedroom apartments have increased by $79 to $978 per month (8% increase). Buying property to gain a steady rental income from renters is a sound investment if you are retired and have the time maintain the units. A frequent trend I’m seeing is aging baby boomers looking to downsize. This is causing home sales to rise dramatically in many communities like Ridgetop Tennessee (see charts & analysis below), where the economy is very strong and you can pick-up a nice 3 bedroom home on one acre for below $169,000 comments, James Rickman, CEO of Tennessee Estate Sales & Business Liquidation. As the country struggles with greater debt, higher taxes and reduced rent tax deductions, its more attractive to buy a home.   

Despite three million homes in foreclosure in the U.S., a steady trend is growing among retiring baby boomers that are downsizing and locating closer to urban areas that are accessible to public transportation.

By 2016, over 72 million baby boomers will have retired many requiring medical care for diabetes, cancer treatment and dementia. I’ve seen a lot of homes “for sale by owner” that can be a great way to save as few thousand dollars on closing costs if you find the right opportunity. Need estate moving sales fill out form below. 

Real estate housing outlook for 2013 and beyond:

• The housing recovery is accelerating for the next 3-5 years.
• Expect a rise in home sales, construction, remodeling and real estate prices that will help boost GDP.
• Investor demand for foreclosed properties is high.
• A new generation of Americans is growing up to create households and families. Need to create family legacy will drive up the demand for home sales.
• New home construction in places like Ridgetop Tennessee just 23 minutes from downtown Nashville are booming with strong economies based on small business growth.
• Home prices are expected to rise in many business friendly towns across America like Ridgetop Tennessee about 7% annually through 2016. The healthy real estate values are a better yield than most bonds.