By Dennifer Reliford
Does renting here in the Nashville area have you nervous? Stressed? Or Pressed? Don’t worry, you’re definitely not alone. Although renting provides you with the easiest access to amenities without the stress of maintenance costs or untimely repairs, it can wreak havoc on your budget with the cost increase on a near yearly basis. According to Redfin, Nashville’s current market rent sits at a whopping $2,141/ month, with both New York and Boston topping the list at $4000/month respectively. How can you pay down other bills, take a trip, or be social in this inflated rent market?
Kissing your landlord goodbye and considering purchasing a home may sound a bit far-fetched, but with a great strategy and a knowledgeable Realtor, it could be the trick to help get both your current and future finances under wraps. I’ll let you in on a well-kept secret… A monthly home mortgage would be cheaper than most people pay each month for housing and the equity earned in the long-term surely pays for itself.
Most people are not aware of the tax incentives and loans that are available to First Time Homebuyers and also for buyers who may have great credit worthiness but maybe need a little downpayment assistance. Do you currently have a lower credit score and might be interested in enrolling in a credit repair program? Most mortgage lenders have great connections with programs that help buyers get on the road to a loan approval. Reaching out to a friendly Realtor is always a great way to get the ball rolling and get you well connected and on the path to homeownership, and out of the rent trap.
Think about it, if you’re currently paying the market rent of $2,141/month that’s a whopping $25,692/ year of your hard-earned money going out without any tax benefits or any of that hard-earned money coming back your way. Buying a home gives you the luxury of capitalizing on the current real estate market and earning equity (money) from the current market price of your home. Remember, real estate is an appreciating asset which means that the sales price of your property will go up in value as time goes on. Close your eyes and just imagine all that you could do with $25,692 even if we could get those costs cut in half.
Buying a home also allows you the privilege of making changes in your living space, such as painting and remodeling, without having to get permission from your landlord. You can get a pet, plant a garden, have a barbecue, or sit on a porch swing and mind your own business as a new homeowner. Think about all of the constant limitations that your current rented space brings about.
Mortgage loans are readily available for buyers with a credit score of 580 or above, but you’ll need to contact a local Realtor or loan advisor for more information. Buying a home will probably be one of the most expensive purchases that you will make in your lifetime, so choose your Realtor wisely and really be honest when chatting with them about your potential wants and needs. If I can be of any service, feel free to reach out, and last but not least stop renting sooner better than later. You owe it to yourself and also to your wallet. If you are looking to buy or sell a home in the Middle Tennessee area, please reach out and contact me personally at 615-425-3600 (office) and/or 812-841-7037 (cell). Or feel free to email me at dreliford@kw.com and let’s set up a good time to chat about your future Real Estate goals.
