What Studies Show
Wondering what the best time to buy a home in Nashville is?
Are you thinking about just how affordable the Nashville, TN real estate market is at the moment?
Consider this: The average price of homes in Nashville was around $490K by September 2022. Home prices have been upward trending at a rate of 22% year-on-year with the average price per square foot pegged at $289, according to Realtor.
To choose from, there are more than 128 neighborhoods in Nashville — with Hillwood being the most expensive neighborhood (at $1.3 million average listing price) and Heron Walk being the most affordable neighborhood in Nashville (average home price at $320,000).
Should Americans Buy a Home Now?
These are hard times, and the way things are going: “It depends” is the overarching answer to the question: Should I buy a home now?
The overpowering crush of inflation, rising mortgages, and simultaneous rise in rentals are unequivocally leading to some form of unexpected optimism.
More than 6 out of 10 Americans (around 56%) consider that these are the best times to buy a home, according to a OnePoll study.
More than 51% of the respondents in the study believe that they see homeownership as a stable investment opportunity. Around 42% want a stable home (that they can call their own) at the time of retirement.
According to Dan Snyder — CEO and co-founder of Lower, a fintech mortgage firm puts it this way:
“Homeowners have gained tens of thousands in equity over the past few years. This is money renters have left on the table ”
At The Premier Builder Group, we think:
If you need a shelter over your head, you’d want to invest (when you can and while you are able) in a home that you can call your own.
You don’t want to make landlords rich by paying rentals, losing out on the opportunity cost (of years, in total) of owning equity in your home, and having a rent-free property by the time you ride into the sunset during your golden years of retirement.
Have the bandwidth to own a second home(or a third one) purely for investment purposes — buy to sell, flipping real estate properties, investing into commercial properties, or for buying homes for rentals?
Then, you’d need to take each investment call on a case-by-case basis (taking several factors into account).
Making the Case for Buying Home for Rentals In Nashville
If you browse the Internet, you’ll clearly see two schools of dominating lines of thinking as far as buying a home for rentals is concerned: Rentals make sense. Or Rentals don’t make sense.
In the end, homes are an asset. Does home buying for rentals make sense? Is it worthwhile? Do rentals help you build wealth, set the path for passive income?
In the year 2017, at least 47% of rentals — across United States — were owned by individual investors, according to the New York Times.
I managed multi-housing projects, commercial properties, home renovation projects, and more.
I know this for sure: As long as you have your numbers, do proper calculations, and take the right call (with the help of experts in Nashville real estate, for instance), you’ll make better investment decisions.
Thumb rule: Here’s how to calculate the ROI on property ROI = (Net Profit/Cost of Investment) x 100
To get there, answer questions such as:
● What exactly is the property you are considering, and what for?
● What is a reasonable return on your investment?
● What do you need for the investment to be worthwhile?
● What are your expenses, for as long as you own the property (until you sell, rent it out, and so on?). Factor in all the costs (not just the purchase price).
● On top of the above, also consider factors such as insurance, opportunity cost due to vacancy (especially, if it’s a rental), change in property value, mortgages, financing costs, maintenance costs, insurance, utilities (if any), and more.
We’ve already done the leg work for you and keep an eye on some of the best properties available in Nashville, Tennessee. Get in touch with us if you’d like to save time, effort, and get a leg up on the process.
How To Explore Further Real Estate Opportunities [That you didn’t think of]
If you want to invest in Nashville real estate, you could do it (as it were).
Let’s say you want to buy a home in Nashville, TN with the sole purpose of buying and selling for profit.
If you just did that, there’s no value in it (except that ownership changes hands). You’ll probably make a little more.
However, if you purchase a property and “add value to it” such as undertaking a home renovation project, you make the property that much more appealing to prospective buyers. Plus, you now have skin in the game notwithstanding the immediate uptick in property value.
At The Premier Builder Group, we offer financing options for Home Renovations and Remodeling cost up to $200,000.
Create the living place you love. Email us or call us for questions.
Whether you are looking to buy property in Nashville, undertake home renovation projects here in Nashville, and more, there are ways to make it work to your advantage.
Want to go beyond just one home or two? Are you a realtor looking for help with projects in Nashville? Would you like help with managing multi-housing projects and large real estate deals?
Perhaps, you can think about realtor initiated projects — which we, at The Premier Builder Group specialize in.
We, at The Premier Builder Group, also provide services — such as Interior Designing, home renovations, property investment, property management, and more.
Our projects span across helping out overextended builders, general property contractual services, and much more.
