As Nashville continues to grow, residents new and old are trying to decide whether it’s wiser to rent or buy a home in the Music City. Your choice will hinge on many factors, including everything from flexibility to predictable monthly expenses. Contacting a trusted real estate agency in Nashville can help make your decision easier.
What You Should Know About Renting in Nashville
For those looking for freedom, renting may be the way to go. You don’t have to worry about long-term loan payments or residential home taxes when you rent. Especially if you’re new to Nashville and aren’t sure which neighborhood you’d like to settle in, renting can offer you the ability to test different areas out to see what works for you. In some cases, you don’t have to worry about maintenance or yard work with renting. Typically, landlords are responsible for paying for and scheduling repairs around the complex, allowing you the benefit of not having to worry about expenses when things break.
With renting, you are normally not allowed to customize your space as you please. That means no painting rooms or altering other interior aspects like countertops and floors. This can be a deal-breaker for some who prefer to have their space be entirely their own. As a renter, you could also face unpredictable rent increases each time your lease is up for renewal. Your rent could fluctuate based on an increase in property taxes or other changes happening within the real estate market.
Average Cost of Renting in Nashville
On average, the cost of rent in Nashville is around $1,581 each month. Meaning if you sign a one-year lease, you should budget to spend $18,972 on rent for the year. Before renting, you should also discuss the price of utilities with your landlord and see if renters insurance is required. Depending on where you’re looking to live and what the housing real estate market might be doing, renting might be the more affordable option.
What You Should Know About Buying a Home in Nashville
Homeownership can bring a sense of stability, a feeling of belonging to a community, and pride in having something that is yours. When you own your home, you get to customize it to your tastes and sensibilities. Purchasing a home is generally a good investment if you’re looking to stay long term, and you don’t have to worry about your monthly payments increasing with a fixed mortgage. Other hidden benefits of homeownership include:
- Mortgage interest is tax-deductible
- Improve your credit score
- Wealth accumulation
Purchasing a home is a big decision and may seem like a risky choice if there’s a chance you might need to move again in the near future. If the real estate market is down and you want to relocate, you may find it difficult to sell and move on. Additionally, depending on how the market is doing, the overall cost of homeownership may appear to be higher than renting. Some expenses you’ll have to account for with homeownership but are hidden in renting include:
- Property taxes
- Water and sewer service
- Pest and rodent control
- Homeowners insurance
Average Cost of Buying a Home in Nashville
The average cost for a home in Nashville is $405,000. Keep in mind, if you need to finance your loan, you will also be paying interest. You should also be aware that the residential property tax in Nashville is based on the county Assessor’s appraised value of your home.