Murfreesboro TN home prices are down. Mortgages rates have never been lower. More and more financial experts are saying BUY NOW!
Trulia - Rent vs. Buy Index - BUY in the Murfreesboro TN area!
FORBES MAGAZINE - BUYERS DO BETTER THAN RENTERS!
CBS Money Magazine - NOW is a Good Time to Buy!
CNN Money - Rent vs. Buy? BUYING WINS!
But the Murfreesboro TN real estate market is still a buyer's market in most areas as many people are opting to rent instead of buy! Maybe Peter, Paul and Mary should record "Where have all the buyer’s gone?"
Fear is keeping many buyers from taking the steps to become home owners. They are accepting their role as renters and waiting, and waiting, and waiting. They are scared of their future employment, scared of another recession, scared to make a mortgage commitment, and scared home prices will continue to drop.
These are legitimate concerns. However, I encourage people to look past these fears which are not facts, but false beliefs. For most people, their monthly budget has to include a housing expense. After all, we have to live somewhere whether we rent or own! Right now, real estate in Murfreesboro TN favors buying over renting. Your monthly housing expense will be lower if you purchase your own home vs. renting.
According to CNN Money Magazine, it makes more financial sense to buy if their rent to buy formula is15 or below. The basic formula takes the purchase price and divides it by the estimated annual rent of a similar home. All homes are unique, but in most portions of Murfreesboro, this rate is closer to 10! You can read more and see examples in my former blog posts about the Murfreesboro TN Real Estate Market Recovery and The Golden Era of Homeownership.
I've referenced articles where experts and financial wizards make a strong case for buying a home now. Here are my top financial reasons why renters should get over their fear and purchase a new home:
You will never be debt free if you always rent! You will always have a monthly housing expense (debt) unless you purchase your own home. Even though the market may go up and down, if you buy a home, you will eventually be debt free...which is a great goal for retirement!
Your monthly payment including taxes and insurance will be LESS! In most cases, if you buy your own home instead of rent in Murfreesboro your monthly payment will be less. See an earlier blog I wrote which gave some examples for homes in the $250,000-$275,00000 range. In addition, you will have a locked in payment with no worries over future rent increases. For more information and examples of rent vs. buying real estate in Murfreesboro TN, read my blog Crazy Like A Fox!
You will lock in your monthly housing expense! Your principal and interest will never go up. You have complete control over your monthly housing expense for years to come! According to one study renters are living beyond their means! In 1960 only 24% of renters exceeded the recommended maximum of 30% of their pretax income for rent. Compare that to 2009 when 25% of renters paid MORE THAN HALF of their income toward rent and utilities! Rent has continued to increase since that time and continues to rise with the greater demand for rental homes. The threat of rising home prices, mortgage rates, or rent rates are all eliminated when you purchase your own home.
For home buyers willing to look past their fears, it can be a great time to buy a Murfreesboro home! Don't miss out on this Golden Era of Homeownership! The next song you hear may be, "Where Have All The Houses Gone!"
When you are ready to start the search for your new home, please contact Sherri Wellborn with Keller Williams at 615-566-3789! Don’t let fear hold you back!