This kind of goes without saying, but I will say it anyway. Now is a really, really good time to buy. Interest rates are low. Prices are down. What are you waiting for!
Remember this is a place to live not a stock market investment, they say. Lenders want buyers to spend no more than 28 percent of their gross monthly income on mortgage payments, real estate taxes, and home insurance. Buyers shouldn’t count on stretching further because lenders won’t approve their loans.
- Cash is king. Having enough money in the bank to pay closing costs that are typically an additional 2 percent to 3 percent of the price of the home is necessary.
- Location. Location, location. As any good real estate professional knows, homes in good school districts where the crime is low are much more likely to hold or increase their value.
- Compare. Besides just looking at the comps, buyers should examine what it would cost to rent a similar house in the same area and they might consider what it would cost to buy land and build a comparable home.
- Think long haul. It will probably take at least six or seven years of living in the house to be able to sell and come out ahead.
As for the location part of it, Kingston Springs and Pegram has excellent schools. Harpeth High which serves both communities, was actually one of only four schools in the whole state to win the Blue Ribbon Award last year. Comparing what it would cost to rent in the area is a moot point if you choose the right location. For instance, over the last four years that I have lived here, I have seen my home’s value increase about 20%. That’s wealth that I would not have earned had I rented.
