There are a lot of reasons to buy a Knoxville home now. Home prices are historically low. Mortgage interest rates are historically low as well. And, new data from Trulia has given potential buyers yet another reason to buy a home now. According to new data from Trulia, comparing the cost of renting and buying the top 100 metropolitan areas in the U.S, buying a Knoxville home is currently 50% cheaper than renting an apartment.
So, what does this mean for you if you are debating renting vs. buying?
Renting an apartment in Knoxville will cost you more, but depending on your situation the cost may be worth it in the long run. According to the data from Trulia, the average monthly cost of homeownership in Knoxville is $630 while the average cost of renting is $1,260. That is, a $630 or 50% monthly difference. While that may seem like a lot, if you are on the fence about renting vs. buying, it is important that you consider whether or not homeownership is right for you. Are you planning to stay for at least 3-5 years? Are you willing to take on the responsibility of homeownership? While cost is important in this decision, it is also important that you consider what is personally best for you.
Another thing to consider is whether you qualify for financing that will ultimately make buying a home cheaper. Credit can play a huge role in determining what type of financing and interest rate you qualify for. For those with good credit, they can qualify for a low interest rate that ultimately makes owning a home cheaper. While those with bad credit, they may not qualify for as low of an interest rate. If you are unsure of where you fall, consider talking to a loan officer to see what type of financing you would qualify for.
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, Knoxville Home Team would more than happy to answer your questions. Feel free to give Rick a call at 865-696-9002 or send an email to [email protected]. Or, give Kati a call at 865-392-5880 or send an email to [email protected].