It’s the question that haunts most millennials today, should you buy a house or rent? Most people want to own their own home, it’s just a matter of finding the right home for the right price. If you’re left pondering this question, here’s a breakdown of what you should consider when deciding if you should own a home or continue renting…
Buying a home is a great investment
Yep! When you purchase a home, you begin to build equity as you pay the house off. All those mortgage payments mean something because eventually you will pay it off and completely own something of great value. With renting, you are paying the mortgage off for someone else. Not sure about you, but paying off a mortgage we don’t get to benefit from in the end doesn’t sound like a good investment! If you’ve been renting for a while, it might be time to start considering purchasing a home.
Renting gives you flexibility, but it’s a terrible long-term investment!
Costs of Buying a House
When debating the question of rent vs. buy, the costs of purchasing a home is at the top of the list of discussion. The down payment is the biggest cost associated with buying a home. A 20% down payment is standard, but many first-time home buyers cannot afford a heavy down payment. Each mortgage type has their own down payment requirement, so there is some flexibility. It’s to your advantage though to put as much down as possible when buying a home. A bigger down payment could mean a lower monthly payment and a better interest rate. While you are renting, use this time to save up a down payment.
Buying a home is more than just a down payment. People buy homes every day, so the costs are nothing to fear, but it’s important to know what to expect. Find out the other costs involved with purchasing a house on this infographic.
The costs of buying a house also depends on the type of mortgage you get. FHA, USDA, VA, and Conventional loans all have their specific requirements. You can find more info about the different mortgage options here.
Settle down to buy a house
One of the reasons renting is so appealing (especially to young people) is the amount of flexibility it brings. You can literally hop around to different apartments, neighborhoods, and cities every year if you wanted (not recommend though). If you still aren’t settled with your job or city, renting makes sense for the short term. Don’t wait too long though! Like we said, buying a home is a great long-term investment, renting is not.
Generally, you should plan to live in the home you purchase for at least 5 years. According to the National Association of Realtors, people stay in their home for an average of 9 years before selling. Buying and selling a home cost money, so doing it too soon after you purchasing could mean you lose money. When you’re ready to put down some roots, buying a home is a great decision. Even if you’re not ready to buy a single-family home in the suburbs, purchasing a condo or townhouse in the city is a great option if you plan to stay for a few years.
Home ownership is our passion at Location Williamson. We get up each day excited to help people achieve their goal of owning a home, whether it’s their first or 15th home, in Metro Nashville. Our team would love to talk to you more about owning a home. Wherever you’re at in the process, feel free to bring us your questions. Reach a buyer specialist at 615.469.1412 or online.
Begin your home search right here on LocationWilliamson.com. Search any property on the MLS in Metro Nashville by price, size, location, and feature. If you’re looking specifically for homes in Brentwood, Franklin, Spring Hill, Thompsons Station, College Grove, or Fairview, check out our community guides.