Is the Memphis area a good Real Estate Buy?

[aneftp]

Seems like I am making poor impression of myself on this board. For that I apologize.

I do not live a lavish lifestyle at all. I save most of my money. I put a 30% downpayment on my house in the DC area and pay into the principle each month.

I originally posted because my fiancee was pressuring me to buy another home because she did not want to rent. I'm not too sure if the Memphis area was a good buy. If this were South Florida or either east and west Coast, I would buy a home because you have a lot of choices and I know the homes will eventually rebound. I keep on hearing from people not to buy a home in the Memphis area (these are from some friends in Germantown).

The Hummer is leased because 1. 70% tax deductible because I'm on a 1099 and 2. It was only a 24 month lease.

The BMW I just paid it all off already.

I'm just trying to get a good feel for the area. (I've been to the Memphis area 4 different times in the past 4 months). I specifically had it written in my contract that I have a 30 day out clause. This is more of a compromise between my fiancee and I. If it were I perfect world, I'd live in California.

With regards to the AMT, state income tax plays a major part. Being single my personal hit is about 44K. If I have over 100K in deductions (state income tax, property tax, etc) anything over that 44K cannot be deducted and that counts as your AMT extra tax. Plus I pay 20% capital gains tax instead of 15% and I have to be very careful if I take out a home equity line of credit because if I use it for anything other than for the improvement of the home, I cannot deduct the interest. The highest percentage of people who get hit with the AMT live in the highest income tax states like New York New Jersey, Maryland, DC, California. States with no income tax account for very little of people who get hit with the AMT (like Tennessee, Texas, Florida, Washington State)

The flight I took on Northwest was last month. Seems like Northwest has decided to lower their prices from DCA to Memphis.

[Pearlbob]

Well, no one wants to hear about your personal income or posessions in that much detail. If you like living the high-life in Cali, you will not enjoy Memphis. If your gf enjoyed growing up in Chattanooga, she will not like Memphis. What does it matter if she was born here? I have no innate desire to move back to where I was born. I'm not a bird.

Memphis seems to house 3 types of people: people who grew up here and still live here. People who moved here for work and stayed. People who moved here to be close to family and stayed. It doesn't sound like you are any of those 3. Memphis is a very, very poor urban city. Very poor. Very uneducated. Very "ghetto" for lack of a better word. Not all of it, of course. But if you are used to some sort of lavish west coast lifestyle, you're not going to enjoy it here.

I like Memphis okay. If I had some sort of million dollar income and I could move anywhere, I'd be on the next $1300 flight out of here.

[simcity]

That was a pretty darn good post Mr. Pearlbob. You're not a bird? lol

He's right though, 1/4 of the population of Memphis currently lives in poverty and our cost of living is well below the national average for a city of this size. I suppose Memphis is cheap on most levels when compared to DC, but you tend to get what you pay for.

I'd also love to live in CA or in the north east, but I fall under category #3 and I'm trying to get ahead by not moving every 5 years like the average American does.

[Pearlbob]

Haha, I was just joking around, no offense to anyone. It would be one thing though, if she grew up here, and wanted to move back. But just being born here and never living here---doesn't make much sense to me.

I always get dismayed where I hear national reports saying how cheap Memphis is. Sure, we have a ton of $70,000 homes here! I wouldn't be caught dead living in one though (or...maybe I would be...).

In terms of things like food, shopping, gas, Memphis is low priced though. Gas for a Hummer might run you though.

[daneinmemphis]

Hi.
If I were you and knew I was going to stay for a longer period -at least a few years, I would definitely buy. especially with that kind of rent you are talking about. I would probaly look outside Shelby County, it seems like that is where it's "happening" now. and with your ability to pay for a more expensive home I would look in either Piperton or Hickory Withe, both in Fayette at the Shelby border, with exclusive new homes and no city taxes, (which could add up with a 800k home) and not least important, I've heard they have a sane mayor out there.
Anyway, good luck