Rent or Buy? Tips for Nashville Renters
Today we expect instant gratification for just about everything: food delivery instead of going to a restaurant, or grabbing an Uber or Lyft from an app in minutes instead of calling a cab.
When it comes to choosing a home, renting might seem like the fast option. Just fill out an application and move in, right? But buying a home in Nashville is easier than you may think — and may set you up for long-term success down the road.
Here are three tips on why buying may be a better option for your future:
1. You can build equity if you own your home in Tennessee.
Renting can be a great short-term option after a job change or while you save up some extra cash. But you’ll never get back the money you give to a landlord. When you put money into a house you own, you’re likely to recoup that money or even make a profit when you go to sell. Nashville, ranked as one of the hottest housing markets in the country, is a great place to buy and invest. Home values have increased 8.3% over the past year, and Zillow predicts they will rise 5.5% within the next year.
In addition, your monthly mortgage payments will stop at some point. Think about where you want to be 30 years from now. Sending children to college? Vacationing? Wanting to retire? If your home is paid off, that mortgage payment goes to your pocket, and you’ll be able to support your hobbies. Paying rent to someone else doesn’t stop.
If you or someone you know is handy around the house, consider buying a house that needs a little work. You’ll likely build equity by doing renovations yourself.
2. You may be able to get help paying the mortgage.
Think about renting in a different light. Who says YOU can’t be the landlord? If your mortgage payment seems scary, find a roommate! Not sure where to do that? Ask local friends and family, join renter or neighborhood groups on Facebook, post on local neighborhood sites like NextDoor or Craigslist, or hire a company such as Renters Warehouse to do the legwork for you. You’ve just cut your mortgage payment in half, or more.
3. The down payment might not be as difficult as you’d think.
First-time home buyers get a tax break on purchasing a home. Not only that, but many mortgage lenders (like Membrillo Mortgage Team) have programs to help you bypass that high down payment. We want you to reach your goals, not shy away from them. For example, an FHA loan allows you to buy a home with as little as 3.5% down.
Try using our Peoples Home Equity mortgage calculator to help you determine what costs would look like renting vs. buying a home.
Still not sure? Contact us to talk through it with you.
About the Membrillo Mortgage Team
The Membrillo Mortgage Team, based in Brentwood, TN, is powered by Peoples Home Equity and is dedicated to the simple goal of helping Americans achieve the dream of responsible home ownership. Peoples Home Equity, which was formed in 2001, is a fully functional Conventional and Government HUD-approved lender that closes more than $3 billion in mortgage loans annually. www.membrillomortgageteam.com