Buying vs Renting in the Twin Cities
Buying vs Renting in Mpls and St. Paul, MN
Are you currently a renter in the Twin Cities who is thinking about buying a home but still apprehensive about making that move? A home is the single largest purchase you will probably make in your life and I applaud you for your careful consideration, that’s a good thing. In addition, maintaining a house is a large responsibility and you need to determine if you are ready to take that on. If cutting the lawn and cleaning the gutters is more than you want to deal with, perhaps a condo or townhouse is a good option for you. Let's take a look at a few good reasons which might make you decide to turn you the renter, into you the proud home owner!
Downside of Renting in The Twin Cities, MN
Experience has taught me that the quality of your rental experience is largely based on your neighbors above, below and on either side of you. If they are inconsiderate and unmindful that they are living in a community where loud music, unruly children, slammed doors, and late night parties will have a detrimental effect on the peace and sanity of their fellow tenants then you are in for an experience resembling the Mad Hatter’s Tea Party. You may be unlucky and rent from an apathetic landlord who is slow to respond to maintenance requests or perhaps one only interested in temporary fixes while you, the tenant deal with recurring plumbing issues or appliance breakdowns. As a renter, you will probably not have enough storage area for your stuff and have little or no options to personalize your living space.
Home Ownership In Minneapolis and St. Paul, MN Feels Good
For most people, home ownership is still a large part of the American Dream. It is a rite of passage and the superhighway into adulthood. It imparts a feeling of permanence, stability, and security. Whether home to you is a small condo downtown or a single family home in the suburbs it is your personal safe haven, an anchor and a tangible, brick and mortar symbol of your independence. Those are just a few of the many emotional reasons we are drawn to homeownership. However, there are many practical reasons as well that may indicate purchasing a home is the best option.
The Housing Market has stabilized and home values are still on the rise. With every mortgage payment, you make you are building equity for the future. According to Zillow, this year housing values rose 4.8% in Minneapolis and values are predicted to hold steady into 2015. At the end of the day, you will see your money being more productive if you invest in home ownership versus paying a large amount of rent to your landlord every month.
Home Ownership in the Twin Cities has Tax Advantages
Mortgage payments are fully tax deductible. For younger people without children, it is probably the only option to reduce taxes. On a loan of $160,000 at 4.5%, during the first complete year (2015) you would pay $11,846.45 in interest. If your first payment is January 1st, your taxable income would be almost $12,000 less due to the IRS interest rate deduction allowed for ownership of property.
Monthly Cost of Owning in the Twin Cities is Less than Renting
With high rents continuing their upward trend here in the Twin Cities Metro and interest rates still historically low, the monthly cost of being a homeowner is less than being a renter. According to Trulia, it is 48% cheaper to buy a home in the Twin Cities than to rent.
You are the one in Charge
Finally, you have enough closet space for all your shoes! Luxuriate in all the cabinet space you now have in your kitchen. Go ahead and paint your bedroom duck egg blue and your bathroom tangerine sunset! Build those bookcases you have always wanted in your den. Plant tulips in your yard and start a vegetable garden. Turn up the volume on your home theater! It’s difficult to set a value on the pride of ownership and the sense of stability and security owning a home gives to you and your family.
The Bottom Line on Renting vs Buying in the Mpls, St. Paul Metro Area of MN
Low-interest rates coupled with increased inventory and stable home values all are favorable indicators to take that big step and buy a home. With monthly housing costs of owning lower than renting, tax incentives, and equity building are added incentives. If you are inspired to start your home search now, or have any questions about this post or buying a home, please do not hesitate to call.