Renting in Nashville? Here’s Why Buying a Home Can Build Your Wealth—And What Costs to Expect

Renting in Nashville? Here’s What You Should Know Before Buying Your First Home 

If you're currently renting in Nashville, chances are you've thought about buying a home- but maybe you’re hesitant. After all, rent can feel simpler: one monthly payment, no surprise repair bills, no worrying about property taxes.

But here’s the flip side many renters overlook: when you rent, you’re building your landlord’s wealth, not your own.

Buying a home isn’t just about having a place to live. It’s a long-term financial strategy. Over time, homeownership can help build your net worth through rising property values and paying down your mortgage.

Renting vs. Buying: It’s Not a Simple Math Problem

Deciding whether to rent or buy isn’t just comparing your rent to a potential mortgage payment. Consider:

• How long do you plan to stay in the home?

• Are rents expected to rise where you live?

• What do your income prospects look like for the next five years?

Doing nothing (continuing to rent) is still a decision. Even in an uncertain economy, it's smart to evaluate your options carefully and plan ahead.

Why Owning a Home in Nashville Builds Wealth Over Time

One of the biggest mindset shifts from renting to owning? Every monthly mortgage payment helps you build equity. Unlike rent, which is gone the moment you pay it, a portion of every payment goes toward owning more of your home.

And here in Nashville, home values have historically trended upward—meaning the house itself often appreciates in value over time. Think of your home as both shelter and an investment vehicle.

Even if your mortgage is higher than your current rent, you’re paying yourself—not just a landlord.

But Homeownership Isn’t Just a Fixed Payment

While a fixed-rate mortgage gives you a predictable house payment, homeownership as a whole is not a “fixed cost.” There are ongoing, often rising expenses you should plan for:

• Insurance premiums (especially in areas prone to storms)

• Property taxes, which tend to rise as home values increase

• HOA fees (if applicable)

• Maintenance and repairs

These are costs renters typically avoid—but they’re part of protecting your investment once you own.

Plan for Maintenance: 1% to 3% of Your Home’s Value

Here’s a rule of thumb: budget 1% to 3% of your home’s value every year for maintenance and repairs.

Why aim for the higher end? In Nashville:

• Skilled contractors are in short supply, which drives up service prices.

• Climate shifts (hotter summers, heavier rains) mean homes need updates they didn’t in the past—like better insulation, new gutters, or better stormwater drainage systems.

You might go a year spending very little—but big repairs will come. Saving for them ahead of time will protect your finances when they do.

Get in the Habit: Set Up a Home Savings Fund Now

Even if you're still renting, start practicing for homeownership by creating a maintenance fund. Set aside a bit each month, as if you already owned a home.

Once you buy, that fund can become your safety net for unexpected repairs—a tree falls, the HVAC goes out, or the roof needs attention. Being prepared means less financial stress.

And When Repairs Are Needed? Don’t Wait.

Deferred maintenance is one of the most expensive mistakes new homeowners make. If something needs attention—gutters, siding, insulation—handle it sooner rather than later. Small issues snowball into bigger, costlier problems over time.

Yes, Homeownership Is Work. But It’s Worth It.

Buying a home in Nashville might feel overwhelming, especially when rent feels simple. But remember:

• Your mortgage helps build your equity.

• Your home’s value may increase, growing your net worth.

• You gain control over your space, your future, and your investment.

Owning isn’t just about the monthly payment—it’s about playing the long game for your financial future.

Wondering If You’re Ready? Let’s Talk.

If you’re renting now and curious whether homeownership makes sense for you, let’s chat. I’ll walk you through what to expect, how to prepare, and what options exist for first-time buyers in Nashville.

No pressure—just honest advice.