Should I Buy or Rent my Next Home?

A big question and debate now a days is should I buy or rent a home. With the down payment, home maintenance and upkeep, property taxes and home owners insurance it’s easy to think that buying a home is out of reach and that renting is a better alternative.

Hi, I’m Angie Groettum, The Twin Cities Running Realtor®.

One of the greatest joys of ownership for many people is setting down roots. When you buy a house, you have your own home and land and become part of a community, meeting and sharing with your neighbors, getting involved in local issues and putting an investment back into the community.

This lifestyle can be very attractive, especially if you have children who will enjoy the stability a home can provide.

According to Forbes.com, Minneapolis is the 2nd worst state to rent in the country which in turn makes it the 2nd best place to buy a home.  The average rent per month is $965 while the average monthly mortgage is less at only $843 a month.

A few things to keep in mind: while renting you don’t have to pay for mechanicals that can break down on occasion but you are subject to rent increases of 3-6% each year, whether you received a raise at work or not. However if you have a fixed mortgage, your mortgage will remain the same year after year even as the cost of living increases. That is a plus for buying on the month to month platform.

For the long term consider this, you have to live somewhere right? So let’s say you pay on average $1000 a month on rent for 30 years that’s $360,000 plus a security deposit of $1000 that you have paid someone else. What do you get in 30 years? $1000, if you kept the place in tip top condition.

Now let’s say you bought a home. So in Minneapolis you’re paying $122 less per month, but you decided to invest that extra money into home improvements over the years. Ok, now you have 2 options, you can continue to live in the home, mortgage free or sell and walk away with some serious cash.

People ask me all the time, is this a good time to buy? I want you to know this: The housing industry has gained strength in recent months, home prices are still down and interest rates continue to be low so that all makes it good, but my recommendation is that the right time to buy is always and only when it’s the right time for you.

To see all my current listings in the Minneapolis St Paul area, or to get a Free Custom MLS Report, please click on my website there are two pages to help you, NEW HOMES & JUST FOR YOU. You can also call my office at 952-844-1545, on my cell phone you may call or text me at 612-600-9540.

“See you round the neighborhood”