Website: Owning Home Pays Off Quicker In Nashville

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Website: Owning Home Pays Off Quicker In Nashville

CREATED Apr 30, 2014
by Todd Walker

NASHVILLE, Tenn. – One of the biggest questions many residents of Nashville face is whether to buy or rent property.

Rent has not been getting any cheaper and neither are homes. New research from a popular real estate website may give some good insight.

Zillow has released its annual "break-even" research for real estate markets all over the country.

Nashville appeared to be ahead of the national average.

The website said, on average, Nashville homeowners break-even or save money owning their homes after two years.

Robert Creecy, an affiliate broker for Re/Max in Nashville, said the research is a good broad view of Nashville's market, but doesn't get into specifics.

Creecy said he tells his clients they'll break even, on average, after about three years of ownership, and start making money after five.

"I don’t agree that real estate should be a short term investment," he said. "It should be looked at as more of a savings bond. You’ve got to stay there long enough to cash in."

Creecy said sellers have a lot of expenses in the closing process.

He said their break-even point isn't until the property has appreciated enough to at least cover those expenses.

Creecy said home prices and demand can vary greatly within a zip code, which is what Zillow uses to break down its research.That could give homeowners false hope.

Creecy said the best practice for homeowners is to base their research off of properties within a one-mile radius of their own residence.

To see Zillow's research and how other areas around the country fared, click here.

Email: twalker@newschannel5.com