Where Are Your Dollars Better Spent?
Choosing between renting and buying is often as simple as determining how long you plan to be in your current home. For short-term stays, renting is the better option. So much investment is needed for making a purchase that you won’t see a return for up to four years or more. Those planning to stick around a while, however, will find that buying is the better deal.
Real-Life Application
To show you what we mean, we’ve used this rent calculator to give you an idea of the money spent from year to year on both mortgage and rent for the same home. This home, for our purposes, is located in East Nashville, has a price of $150,000 or rent payments of $900 per month. Can you picture it?
For the first four years of living in this home, renting is better. In fact, in year three, you’d save over a thousand dollars just by renting instead of buying. By year four, however, you’d save $364 as the homeowner instead of a tentant, and at six years, you’d save nearly $2000.
These numbers take into account several factors, including interest on your mortgage, property taxes, maintenance, and homeowner’s insurance. While these aren’t necessary expenditures for renting, many are included in the monthly mortgage payment, which would be lower than a lease payment. Where the money is saved, aside from a lower mortgage payment, is in rising rent payments from year to year, for which you receive no equity.
Find Your East Nashville Dream
Believe it or not, plenty of homes in East Nashville fit right into this price model. We’ve selected eleven different properties that could fulfill your hopes of being a homeowner instead of renting. Take a look at what’s available under $150,000 in East Nashville and then start taking control of your future.
Image: freedigitalphotos.net/renjith krishnan
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