Part Three: Renting Vs. Buying in Knoxville
In Part I of the blog post series, “Renting Vs. Buying in Knoxville,” we compared the price of buying a home in Knoxville versus that of renting an apartment. And, in Part II, we looked at the benefits of renting. In this blog post, we will look at the many great benefits of buying a home.
Here is a list of reasons why buying a home might be the right choice for you.
- When you buy a home, you building equity over time. When you rent an apartment, the money you pay for rent you will never see again. With the median rent in Knoxville being $637, that is $7,444 each year, $38,220 every five years that you will never see again. Money put into your home is an investment for the future.
- There are many tax benefits to buying a home in Knoxville. Homeowners can deduct the following from their gross income: mortgage interest payment [for mortgages below $1 million or $500,000 if married and filing separately], property taxes, loan origination fees, and loan prepayment penalties. Also, profits from selling your house can be excluded from your taxes up to $250,000 if filing as single and up to $500,000 if filing as married.
- The property you buy is yours. When you buy a home, you have more freedom to decorate it and change it how you please. If there is something you don’t like about a house, like wall color, carpeting, or landscaping, it is yours to change as you please. People who rent apartments are tied to the restrictions set forth by the apartment complex.
When you are debating renting vs. buying in Knoxville, there are many things to consider. If you are not planning on moving and want to feel like you are investing in something instead of throwing money away, buying could be the right decision for you. However, if you enjoy the mobility renting has offer, you may be better of renting. It is important to weigh the pros and the cons and how they relate to your lifestyle.
If you are debating the benefits of renting vs. buying in Knoxville, I’d be more than happy to answer your questions. Feel free to give me call at 865-696-9002, shoot me an email, or simply leave a comment on this post. I look forward to helping you in anyway that I can.