Knoxville is a city with a plethora of advantages, such as a reasonable cost of living and high quality of life. Therefore, whether you want to move out of your family home, expand your family, or have a change of scenery, Knoxville has got you covered. However, with the housing market being as unpredictable as ever, it can be challenging to decide whether you should buy or rent a property. Such a decision is often accompanied by plenty of doubts and questions we are here to answer. So, buy vs. rent in Knoxville - what makes more sense for you?
Important factors you need to consider when choosing between buying and renting in Knoxville
With plenty of different variables that you must consider, it would be impossible to list them all. However, there are certain things that you must be aware of before you decide whether to buy or rent in Knoxville.
Your budget
First and foremost, you must consider your available budget. This will significantly influence your final decision. Carefully calculate how much money you can put aside for various expenses associated with renting and buying, such as mortgage fees for buying and renter fees for renting. However, other expenses will also play a part. When it comes to owning a home, the funds needed for a professional real estate agent and further maintenance costs of owning a home are only two examples of additional expenditures associated with home ownership. As for renting, you will need to think about the needed safety deposit and possible parking and maintenance fees.
Knoxville's housing market
Another factor worth considering is the current housing market. Although it seems to be constantly fluctuating, certain things can be expected. In Knoxville, the median home price has risen 22.7% compared to last year, and in August, it was ~$319K. Compared to the US's median home price of ~$429K, Knoxville's prices are 25.6% lower. As for renting, the current median renter fee in Knoxville is $1,504. This is around 13.4% higher than what the average American renter pays. There is an almost equal amount of renters and homeowners in Knoxville. Homeowners make up 47% of the population and renters the other 53%.
Preferred Knoxville Neighborhood
Since Knoxville is the largest city in the Eastern part of Tennessee, it is safe to say it has plenty of neighborhoods that you may be able to choose from. Depending on your budget, needs, and wants, we are sure you'll find the right area for you. This is why it is essential that you first do your research and pick a location before you plan a long-distance move to beautiful Knoxville. Then, the only thing left to do is find professional movers that can take you there. Just make sure to read reviews and compare different options before making your final decision.
Buy vs. Rent in Knoxville - Pros and Cons
Now that we've presented some of the critical factors you first need to consider, let's talk about what will truly help you choose whether to buy or rent in Knoxville. Below are the pros and cons of each option.
Buying
If you are interested in buying a property in Knoxville, here are some pros and cons you can expect.
Pros:
- Buying is an investment: Every time you pay your mortgage fees, you will have something to show for it, which is your investment for the future in the shape of real estate.
- Presence of different tax benefits: You can expect various tax benefits as a homeowner in Knoxville. Some allowable deductions are mortgage interest payments, property taxes, loan origination costs, and loan prepayment penalties.
- Your home is your own: When you purchase a property and get those keys, you can do whatever you want with your space. Furthermore, you may feel safe and have more room to grow a family.
- Being a homeowner is a huge milestone: You will feel a sense of accomplishment knowing you've just bought a place where you may plant your roots.
Cons:
- High prices: Buying a property can be quite costly since it is associated with many fund-draining tasks.
- High interest rates: Tennessee currently has high mortgage rates of 7.29% for a 30-year fixed and 6.44% for a 15-year fixed. These rates have not been as high as they are now since 2008.
- Necessary maintenance: Once you purchase a home, you must maintain its value and overall state.
- Less flexibility: Planting your roots in a purchased property reduces your ability to move around.
Renting
Renting can also be a great option, but be aware of the pros and cons.
Pros:
- Less expensive: If you are not financially ready to purchase a home, renting is perfect for you since it is less costly, and you will not have to get a loan.
- Easy and cheap application process: The process of renting in Knoxville is relatively straightforward, with only a couple of additional fees (as previously mentioned).
- No or fewer maintenance tasks: If anything stops working while you're under rent, you are not the one responsible for fixing it.
- More flexibility: You can easily change your apartment complex, neighborhood, city, or even state if you live under rent.
Cons:
- Not building equity: When you rent, you aren't accumulating equity, which can be quite a downside if you rent a property for many years.
- Changing rent fees: Each year, rent costs typically increase without much cause or justification. This makes it hard to plan your finances a few years in advance.
- Often comes with less space: If you want a spacious living space, most apartments will not cut it.
- Less security: Your living arrangement entirely relies on your landlord's whims and wishes. Therefore, you will have to move if they decide to sell or transform the property into a vacation space.
The final verdict: Buy vs. Rent in Knoxville
Buy vs. Rent in Knoxville? The battle is real, but when you know what to consider, you can have an easier time deciding. Consider your needs, wants, and circumstances thoroughly in order to choose between renting and buying. Furthermore, ask for guidance from your loved ones before making the right decision. And if you do decide to purchase a home in Knoxville, contact a local real estate agent that will be able to assist you.