Rent or Buy in Nashville?
Whether you are moving out on your own for the first time, or are new to the Nashville area, the decision to buy or rent a home in Nashville is a highly personal decision. For many people, buying a home in Nashville is a dream come true; however, home ownership isn’t for everyone. For those who decide to rent, Nashville real estate listings typically include a number of excellent rental options as well. Before making the decision to rent or buy, be sure to weigh the advantages and disadvantages of each option.
Buying a Home in Nashville
If you plan to scour the Nashville real estate listings for a home for sale, be sure to consider the costs, responsibilities, and commitment that go along with home ownership first. For anyone buying a home in Nashville, the purchase will typically require a substantial down payment as well as closing costs. Sometimes, you are able to negotiate a sales agreement that includes the seller paying some, or all, of the closing costs; however, you should count on paying them yourself when you create a budget to determine if buying a home in Nashville is your best option.
Along with the initial costs of buying a home, you will have ongoing costs to maintain the home for as long as you live in it. This means that if the furnace goes out, you must repair or replace it. In addition, you will have to pay for homeowners insurance on the home and taxes on a yearly basis. Be sure that you have a firm understanding of what these costs will be before deciding to buy a home. Moreover, some homes require you to pay a homeowner’s association fee each month in addition to all of the other costs. Finally, if you decide to sell the home down the road, you will likely incur costs associated with the sale of the home as well.
While all of these costs may seem prohibitive, remember that buying a home also allows you to build equity in the home. Each month when you make the mortgage payment, you are investing in your future instead of paying off a landlord’s mortgage. In addition, buying a home allows you renovate the home and make it your own—something that a renter cannot do.
Renting a Nashville Home
Although the costs involved in purchasing a home are usually higher upfront than those involved in renting a home, don't be too quick to think that there aren't any upfront costs to renting a home. Most landlords require at least a one month deposit when you rent a home. In addition, they may require your last month’s rent upfront. Depending on the type of Nashville real estate listings you are looking at, the upfront costs involved in renting could be as much as a down payment on a home.
For many, the biggest advantage to renting a home is the fact that there are no hidden costs. Because the landlord takes care of all taxes and repairs, a renter knows exactly how much the home will cost each year. Another consideration is how long you plan to live in the home. For someone whose job could require relocation in the next few years, renting may be a better option than owning because a homeowner does not usually start to build significant equity in a home for at least three years.
Whether you decide to buy a Nashville home, or rent one, as search of the available Nashville real estate listings will likely find you the home of your dreams.