Moving to Knoxville/Maryville Should I buy or Rent? (real estate market, mortgage)

[hooverl]

My wife and I are making a military move to the Knoxville area in August. We're excited to live in the area because I've heard nothing but good things about it; although I've never been there before.

I've been going back and forth in my head whether I should rent or buy. My main concern is how long we'll be there (maybe only 2 years, probably not more than 4) and how much the taxes are, closing costs, etc.

Any advice??

[anothertntony]

Property taxes are quite low. You can see all of the tax rates at:

TN Comptroller of the Treasury - Division of Property Assessments - 2008 Property Tax Rates

Those amounts are dollars per $100 of assessed value. The property is appraised (estimated market value) and the assessed value is 25% of that for residential property. Thus, you can get property tax rates as a percentage of the house's (estimated) value by dividing the numbers by four. Knoxville is about 1.4% of appraised value and the rest of Knox county is about 0.7% (much of what is considered Knoxville, especially West Knoxville, is outside the city limits and subject to the lower taxes).

[oldmanbob]

Renting or buying, all depends on making a fair market purchase, and with todays prices, I would think buying is smarter, as at least you should see some appreciatation, and certainly none on renting, especially if it will be 2 years or more. Prices are stable now, and Knoxville has not been affected as many other parts of the country, but is down, compared to last few years. Good luck, and just choose wisely.

[William Sold]

Buying vs renting....the age old question.

Hoover,

Knoxville home prices are very affordable right now, and obtaining a home with a comparable or even less mortgage vs. monthly rent is absolutely possible. However, 2-4 years can be tricky. Everyone always states that owning a home gains equity, while renting does not. This is absolutely true, though no equity is gained in a level market. As you're not really paying towards your principal in the first few years, renting may be a viable option. In a 2-4 year period, add the two closing costs and it can be a little upside down. The real estate market is great for buyers right now, but not as kind for sellers. If you move in 2 years, your buying advantage may become a seller's disadvantage. I'm probably the wrong side of the coin to be giving that advice, but there's a lot of transient sellers out there in this exact situation right now. However, should you decide to buy, I think you'll find the Knoxville market to your liking. Hope that helps....my two cents

[hooverl]

Thanks for all the great advice! I'm leaning towards renting right now because I discovered it may be less than two years. And as William said (and others have told me) the first few years I wouldn't really be paying towards the principal. I guess I'll just wait to buy my first house until I move somewhere that I plan on staying for awhile.

That being said, I'm looking forward to Knoxville! I've heard it's beautiful!