Rent vs Buy
We all have our own reasons for deciding whether to rent or buy a home. Sometimes it just doesn’t make sense for someone to purchase a property depending on their work, financial or family status. For those that are on the fence about deciding if they should rent or buy, I can’t answer the work, financial and family status questions, but I can lay out the facts about what Nashville’s housing market looks like. Hopefully this enables you to make the most informed decision possible.
Nashville Rent Increases Among Highest in Nation
According to an article in The Tennesseean, Nashville is outpacing the national average of rental rate growth still seeing significant increases. The article went on to say that, “Nashville’s quarterly numbers, meanwhile, place it on Axiometrics’ top 25 list of highest annualized effective rent growth in the nation.” This is mainly due to the demand and supply law where the demand is definitely outpacing the current supply.
Investors have taken notice of Nashville’s booming rental market, which is one reason why Nashville was named to this recent list of best cities to invest in real estate.
What Does All This Mean?
If you are in a position to buy a home instead of rent, here are a few things to consider when making your decision.
- Nashville rental rates are among the highest in the nation
- Unlike rentals, once you have purchased a home, your payment on a fixed mortgage loan doesn’t go up every year.
- Mortgage Rates are currently still low (in the 4’s) when last checked
( ex: a $250,000 at 4.3% would roughly have a mortgage of about $1,500/month)
- Nashville is ranked as one of the highest cities in the nation for home investments
- Tax deduction for interest paid on mortgage loan as long as the home is no more than $750,000.
Hopefully this helps paint a clearer picture of Nashville’s current housing market and how it is possible to take advantage of historically low rates to make a solid investment in a booming city. Feel free to reach out to us with any questions or information about a certain property.