East Tennessee Real Estate & Neighborhood Source
The latest reports indicate that homeownership is still cheaper than renting in the United States. Let’s get together to find you your dream home – it may be cheaper than you think!
Contact Troy Stavros with CornerStone Realty Associates at 888-388-DOOR xt. 707 or 865-999-0925 today!
Spring has sprung in Knoxville, and it’s a great time to buy a home! Here are four reasons to consider buying today instead of waiting.
CoreLogic’s latest U.S. Home Price Insights reports that home prices have appreciated by 4.4% nationally over the last 12 months. The same report predicts that prices will continue to increase at a rate of 4.6% over the next year.
Home values in Knoxville will continue to appreciate for years. Waiting no longer makes sense.
Freddie Mac’s Primary Mortgage Market Survey shows that interest rates for a 30-year fixed rate mortgage came in at 4.41% last week. Most experts predict that rates will rise over the next 12 months. The Mortgage Bankers Association, Fannie Mae, Freddie Mac, and the National Association of Realtors are in unison, projecting rates will increase by this time next year.
An increase in rates will impact YOUR monthly mortgage payment. A year from now, your housing expense will increase if a mortgage is necessary to buy your next home.
Some renters in Knoxville have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
Are you ready to put your housing cost to work for you?
The ‘cost’ of a home is determined by two major components: the price of the home and the current mortgage rate. It appears that both are on the rise.
But what if they weren’t? Would you wait?
Examine the actual reason you are buying and decide if it is worth waiting. Whether you want to have a great place for your children to grow up, greater safety for your family, or you just want to have control over renovations, now could be the time to buy.
If the right thing for you and your family is to purchase a home this year, buying sooner rather than later could lead to substantial savings.
Want to talk about your specific situation? Call or text Troy Stavros with CornerStone Realty Associates at 865-999-0925 today!
Every year around this time, we take time to reflect and plan for next year. If you are renting your current home but have dreams of homeownership, your plan for the new year may include buying, and you wouldn’t be alone!
According to the 2018 Bank of America Homebuyer Insights Report, 74% of renters plan on buying in the next 5 years, with 38% planning to buy in the next 2 years!
When those same renters were asked why they disliked renting, 52% said that rising rental costs were their top reason, and 42% of renters believe that their rent will rise every year. The full results of the survey can be seen below:
It’s no wonder that rising rental costs came in as the top answer! The median asking rent price has risen steadily over the last 30 years, as you can see below!
There is a long-standing rule that a household should not spend more than 28% of its income on housing expenses. With nearly half of renters (48%) surveyed already spending more than that, and with their rents likely to rise again… why are they renting?
When asked why they haven’t purchased a home yet, not having enough saved for a down payment (44%) came in as the top response. The report went on to reveal that nearly half of all respondents believe that “a 20% down payment is required to buy a home.”
If the majority of those who believe they haven’t saved a large enough down payment believe that they need 20% down to buy, that means a large number of renters may be able to buy now!
If you are one of the many renters who is fed up with rising rents but may be confused about what is required to buy in today’s market, let’s get together to help you on your path to homeownership.
The American Dream of homeownership is alive and well. Before you sign another lease, let’s get together to help you better understand all your options. Call Troy Stavros with CornerStone Realty Associates today at 865-999-0925 or 888-388-DOOR xt. 707.
Did you know a homeowner’s NET WORTH is on average over 40X greater than a renters? Watch the video to learn why. Questions? Contact Troy Stavros with Gables & Gates REALTORS. Serving Tennessee home buyers and sellers in the greater Knoxville and Nashville (Franklin) areas. Contact Troy at 865-999-0925.
Are you ready to get out of an apartment and into something larger? Searching homes for rent Knoxville TN? You might want to think twice about that. Here is why. A recent study by the National Association of REALTORS® that studied “income growth, housing costs and changes in the share of renter and owner-occupied households over the past 5 years in metropolitan statistical areas throughout the U.S.,” showed that over the last 5 years, average rent rose 15%, yet the income of the renters only rose 11%. For those currently renting, the difference between rent and income could get you stuck in a place where it becomes impossible for you to save up the funds for a down payment on a home.
One of the biggest benefits of homeownership is the ability to protect yourself from rising rents and have a fixed dollar amount for your housing costs for the life of your mortgage. Did you know that there is a good chance that your monthly living expenses will go down if you buy a home? That’s right! Many buyers find that their mortgage payments are less than what they were paying in rent.
The other huge benefit of home ownership is forced savings and building your net worth. The Federal Reserve conducts the “Survey of Consumer Finances” every 3 years where they collect data across all social and economic groups. Here are some of their findings:
You might be asking yourself why the numbers above are so different. Here is a practical example. A renter, who has rented year after year, is paying their landlord’s mortgage for them. We know that over that last 5 years rent has risen by 15%. So each year the renter is paying more rent to their landlord, yet that renter’s income might not be rising at the same pace as their rent. Therefore over time it effects their net worth negatively. A homeowner on the other hand, has a fixed dollar amount to pay for their housing, because they locked in their interest rate and monthly mortgage payment for up to 30 years when they purchased their home. When they pay their mortgage payment every month, a portion of that payment goes to interest (to pay the bank) and the other portion goes to principal (which pays down the balance of their loan). Whether or not their income increases or not, we know that home values are projected to increase by an average of 3.5% per year for the next 5 years. As the homeowner pays down their balance and the value of their home increases, this builds their home equity, which in turn builds their net worth. It’s no wonder that billionaire investor, John Paulson, recently stated, “I still think, from an individual perspective, the best deal investment you can make is to buy a primary residence that you’re the owner-occupier of.” (you can read that article HERE)
If the example above wasn’t convincing enough, here are 5 financial reasons to buy a home.
Another study has found that many renters have actually saved up the amount of money necessary for a down payment on a home, but they don’t think they’ve saved enough or think they can’t qualify for a loan. Unfortunately, this simply isn’t true, even if you’ve had a short sale, foreclosure, or bankruptcy in the past.
According to Freddie Mac: “Depending on their credit history and other factors, many borrowers can expect to make a down payment of about 5-10%. And new 3% down financing options for qualified borrowers could mean a down payment as little as $6000 for a $200,000 home.”
If you are searching homes for rent in Knoxville, it’s time get off the rental roller coaster and stop the cycle of rising housing costs. Many have been caught in this trap. You might be ready and willing to buy a home, but don’t think you are able. Let’s change that! Contact me, Troy Stavros with Gables & Gates, REALTORS today and I will walk you through the EASY process of finding out if you are in a position to buy a home. Take this huge step towards increasing your net worth and more financial freedom. I hope to talk with you soon!