Last week Forbes made a big splash in the Nashville and Middle Tennessee real estate market. The article said something we've suspected all along here. Nashville and the surrounding areas are currently among the best bets for appreciation (ranked 4th). The areas mentioned are Nashville, Franklin and Murfreesboro, we would toss in Brentwood, Nolensville, Mount Juliet and Spring Hill too.
There are a couple of things to consider if you are wary of buying real estate now. First, these rates are incredible. A house purchased now will have the added bonus come sales time of an assumable mortgage at a ridiculously low rate. If you think that isn't a factor do the math, the difference between 4.5% (today) and 6.5% (more the norm) when the economy returns to full health is more than $100 per month for each 100K of your loan. That means the average person can buy almost 23% more house at 4.5% than at 6.5%. For the same monthly payment at at the lower rate you could buy a house for $370,000 or wait for the rates to increase spend the same each month for a $300,000 house. $70,000 can move folks into a whole different neighborhood, save you that commute time, get your kids into that school system, move you closer to the lifestyle you craved.
The second thing to consider is time lost. Are saying we'll hold on to our current house until the market returns? Would you say the same thing about the stock market? Without getting into a time vs. money equation simply put, money can be earned back, time cannot.
So if you are ready to buy again or to invest, choose real estate and choose a "blue chip" market. Nashville, Franklin, Murfreesboro, Mount Juliet, Brentwood, Nolesnville and Spring Hill are good bets.
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