Renting vs. Home-Buying in the Minneapolis/St. Paul Metro: Pros and Cons

The question many of individuals are facing with is whether to continually rent or buy a home or condo in the very near future. There are no easy answers to the dilemma. You need to ask yourself the following questions; do you want to add equity to your landlord’s bank account? Or consider homeownership?

As of June 2017, www.RentJungle.com states that an average one bedroom apartment in Minneapolis is $1,461.00 a month and two bedrooms is $2,042.00 a month. The St. Paul rental averages for one bedroom apartment is $1,202.00 a month and a two bedroom average is $1,510.00.

Please see below a Rent vs. Buy Calculator via www.realtor.com.

http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/

According to www.trulia.com third quarter report for 2017, it is 45% cheaper to own than to rent by researching the top 100 largest cities in the United States.

There are many aspects to consider before you decide which option is better in regards to renting verses buying a home or a condo.

You will find the most important aspect is being your own financial situation.

Homeownership is one of the biggest investments an individual may have in their lifetime.

Mortgage Calculator
 
http://www.mortgagecalculator.org 

Disadvantages of renting

A disadvantage of renting, on the other hand, is that your landlord may have too many rules and you won’t be able to retouch, renovate or make any changes to the house or condo without his/her permission. Also, renting does nothing to build your equity; you have no satisfaction of owning a property.

Advantages of buying

One of the biggest advantages of buying a home is that you have the satisfaction of owning an asset; building equity is important in these times. Homeowners may qualify for tax deductions for mortgage interest and property taxes.

If you have questions pertaining to the home-buying process or wish set-up appointment, feel free to call Realty Group, Inc.- Shannon Lindstrom, Realtor at 612-616-9714 or email at Shannon@MplsUrbanLiving.com today.

Reference:

http://www.rentjungle.com/average-rent-in-minneapolis-rent-trends/

http://www.realtor.com/home-finance/homebuyer-information/home-mortgage-interest-deduction-limitations.aspx

 

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