To quit renting or delay owning is a crossroad many Minnesotans deal with—at least for those who can actually afford to buy a property. While home ownership is easily the greatest American dream, many individuals that have money for a down payment still refuse to gain a foothold in the property market.
It’s true that it’s hard to leave the conveniences of relying on the apartment complex’s security and maintenance, but having your own place tend to have more financial rewards. If you think about it, buying one of those beautiful Edina or Wayzata, MN homes for sale is beneficial in the long run for many reasons:
You Build Your Wealth
Although you don’t completely own the property yet if you have a mortgage, regular repayments let you build equity on it. Home equity may be an illiquid asset, but it’s still an asset nonetheless. Besides, you may be able to tap into it and turn it into quick cash should you refi down the road.
In addition, the growth in your market allows your property to increase in value passively over time. Especially if you only put down a small down payment, the returns could be extremely high.
You Reduce Your Expenses
If inflation occurs, you’d be at the advantage. As the value of money decreases as time goes by, your landlord would pass down the burden to you by increasing your rent.
On the other hand, your fixed mortgage repayments even go lower as inflation happens. You would actually pay less money in the long run.
You Lower Your Taxes
Little to the knowledge of many homeowners, you can claim your interest payments on your taxes. Mortgage interest is usually considered deductible in both state and federal taxes.
In contrast, you can’t include your rent payments in your tax return if you don’t use your space for your trade or business.
Owning a house is generally a better idea than renting. Especially that rates are historic-lows, there has never been a time to apply for a mortgage to finally realize home ownership.