Published October 23, 2023
Top 4 Benefits of Home Ownership in Minnesota
Buying a home in Minnesota is a huge investment which can seem intimidating, especially if you're a first time buyer. The prospect of a hefty down payment followed by monthly mortgage payments is enough to convince many people that they'd be better off renting. However, while the initial cost of buying a home will always be more than renting a home, there are some substantial advantages to home ownership that are worth considering.
Have you been debating whether to rent or buy a home in Minnesota? Continue reading to learn some of the biggest benefits of home ownership.
4 Significant Benefits of Buying a Home
Hedge Against Inflation - During periods of inflation, the cost of pretty much everything goes up - except for the mortgage payments you make on your home. Home ownership is considered a hedge against inflation because the monthly amount you pay to your mortgage lender will never change, regardless of the state of the economy. By contrast, the cost to rent a home skyrockets when the inflation rate rises. 2022 saw the highest inflation rate in decades. While inflation rates have been lower so far in 2023, they're still higher than in most recent years. Buying a home in Minnesota can protect you from future inflation rate spikes.
Equity - You've definitely heard the term "equity" before but in case you didn't know, equity refers to the value of a mortgaged property that you own. As an example, if you're living in a home that's worth $500,000 and, between down payment and mortgage payments, you've paid $250,000, then that's your current equity. But with each monthly mortgage payment, your equity will go up. If you live in your home long enough, you'll eventually own all of it. This is in stark contrast to renting a home, where no matter how long you live there and how much you pay, you'll never own any of it.
Improved Credit - One big bonus of owning a home in Minnesota is that it helps you to build up your credit history. By consistently paying your mortgage lender on time each month, you're proving that you're reliable with your money and can be trusted to pay back a loan. In the future, when you need to take out a loan to buy another property, or for any other expensive purchase, your good credit history will give you access to better loan options. Meanwhile, renting a home usually has no impact on your credit score.
Personalization - Beyond the financial benefits of buying a home in Minnesota, home ownership also provides you with limitless possibility for customization. In a rental property, you likely won't be able to make any alterations to the existing structure or even paint the walls, at least without the approval of the property owner. When you buy a home, you can personalize it however you'd like. Don't like the paint? Pick a new color. Interested in an all-season porch? Have an addition built. Want a swimming pool? Have one installed. When you own your home, you can make it look and function any way you want it to.
Are You Ready to Be a Homeowner?
If you've decided that you're ready to commit to buying a home, you'll need to partner with a trusted local realtor to help you make the right choice. Connect with the Chris Fritch Team with eXp Realty today if you're interested in working with our real estate agents to buy a home in the Twin Cities metro!
