Bad time to buy a home in Knoxville? (foreclosed, rental)

[RAMFEB31]

Hello Everyone. This is my 1st time on this forum since I've never thot about this area until a long time former employee, who has done very well for himself and now planning retirement from the rat race in So. Ca, to manage his own property invited me to look at some of his rental properties. Though I've read a few of the posting here as well as did a little research on your city, I still have questions regarding investment and home properties as well as living condition. For instance, what is the latest average vacancy factors? And real estate foreclosures: are they increasing? Are the general employment increasing, stable or decreasing? Are there inklings of large employers moving, downsizing or moving in? In your honest opinion, is the local and state gov't becoming more or less restrictive? Are any of you feeling being pinched due to the increase cost of living?

[hiknapster]

Originally Posted by RAMFEB31

Hello Everyone. This is my 1st time on this forum since I've never thot about this area until a long time former employee, who has done very well for himself and now planning retirement from the rat race in So. Ca, to manage his own property invited me to look at some of his rental properties. Hi!

Though I've read a few of the posting here as well as did a little research on your city, I still have questions regarding investment and home properties as well as living condition. Okay.

For instance, what is the latest average vacancy factors? Don't know anything about rentals.

And real estate foreclosures: are they increasing? From last year, yes. Not sure about the last couple of months. They seem to be bought up fairly quickly. Investors and people want the deals.

Are the general employment increasing, stable or decreasing? Not sure. Heard of closings. I don't think it was a lot of people out of jobs. Jobs can be tight, though, because of all the college kids, but one can get a job in a pinch. Opened up the employment page, Sunday, and was surprised. Good, decent jobs. Not TONS. But a lot for a city our size and a heck of a lot more than many places in this country.

Are there inklings of large employers moving, downsizing or moving in? I don't know. My employer is large, and they aren't going anywhere.

In your honest opinion, is the local and state gov't becoming more or less restrictive? Local government can be weird. Not really restrictive.

Are any of you feeling being pinched due to the increase cost of living?No.

I wouldn't invest anywhere unless you know your area and market. I think it would be an excellent area, in the long run, though.

But wouldn't your former employer know about his rental properties and the market?

[goodbyehollywood]

Everybody in America is feeling the pinch; Knoxville is no different. Some things cost less here; others more. It's not a good time to be taking on risk unless you're extremely risk-tolerant and well-funded with a long-term timetable.

Foreclosures are rising in almost every state. Knoxville is more stable than most areas, but I wouldn't invest here-- or anywhere-- until I knew the area very, very well. Houses rent quickly in some areas and sit vacant in others. The heretofore solid rental market could be impacted by an oversupply situation, if unsuccessful sellers try to rent properties instead of selling them. There is little panic selling in Knoxville; sellers are patient. Many are willing to wait it out. As they should.

Employment is stable, but the job market is fairly tight. Companies do come, but large companies tend to locate closer to Nashville. Knoxville's airport and general business climate are not enticing to many companies.

The local government is difficult to deal with, and backroom politics are shameful. Awful. Wretched. Horrid. Hideous. Really, adjectives fall short. If you're a deep-pocket developer or share a common agenda with money changing hands, you might like it. Otherwise, see above adjectives.

Just one person's perspective. You'll get many more.

[mbmouse]

I think it can be a good investment area for rentals, can actually be great IF you buy 3 bedrooms, 2 bath, 2 car garage with basement and fenced in back yards. Be willing to rent 6 months leases or month to month and allow Fido and Fluffy. You could very well stay filled. There are lots of people moving here from elsewhere but either need to sell that house in X state before they buy here. Or they want to rent for a while in the school district of their choice so they can get a feel for the area before they buy a home here.
We all here on CD can attest to many, many , many people asking for this type of rental, however, there is very few of these types. The majority of rentals are one year lease, no pets and or not enough room for storage of all those boxes that they don't want to unpack until the buy.
As for where, it really depends on where and what kind of property you buy as to whether it will stay full.

[hiknapster]

Originally Posted by mbmouse

I think it can be a good investment area for rentals, can actually be great IF you buy 3 bedrooms, 2 bath, 2 car garage with basement and fenced in back yards. Be willing to rent 6 months leases or month to month and allow Fido and Fluffy. You could very well stay filled. There are lots of people moving here from elsewhere but either need to sell that house in X state before they buy here. Or they want to rent for a while in the school district of their choice so they can get a feel for the area before they buy a home here.
We all here on CD can attest to many, many , many people asking for this type of rental, however, there is very few of these types. The majority of rentals are one year lease, no pets and or not enough room for storage of all those boxes that they don't want to unpack until the buy.
As for where, it really depends on where and what kind of property you buy as to whether it will stay full.

Wow. That is right on the money. Literally.

MBMouse have you ever thought of creating start-up businesses?

[mbmouse]

Originally Posted by hiknapster

Wow. That is right on the money. Literally.

MBMouse have you ever thought of creating start-up businesses?

Did and Do

[powet]

There is an important fact that most people miss, probably due to constantly being bombarded by real estate agents about the need to own a home. Renting is the right thing for a lot folks to to, simply because you can be flexible and move to where the jobs are. Owning a home in tough economic times can be an albatross around your neck, not an asset like the realty companies tell you it is.

I own a nice home, but like owning anything else, it is not the end all and it is not the best thing for everyone. Another thing to keep in mind if looking for a home is that real estate agents work on commission. They will push you to the brink of what you can afford. Buy less than they tell you you can afford. They won't be around to make the payment when foreclosure is staring you in the face. One more thought, I have never seen a home make anyone happy, though many get caught up in the moment when looking and think it will solve everything from marriage problems on down. It won't. Only you can make you happy.

[aquarijen]

Sure, you have some valid points, but somewhat of a broad generalization. My Realtor did not push me to any brink, lol - she helped me downsize from a large house to a house that is about 1/6th of what I can "afford", so not all are like that. You just have to find a good one - one you can work with and who will be a partner in finding what you want. Only you know your budget and what you can (or want to) afford.

[Beretta]

I think it is a great time to buy a house! (provided you are going to stay employed)

[creeksitter]

" I have never seen a home make anyone happy"

Oh, I've had houses make me happy. But then I'm a real estate junkie and besides I'm not going anywhere except on vacation. But I agree homeownership is not for everyone.