At times, when weighing the benefits of buying vs. renting in Minnesota, it can feel like you are surrounded by people yelling ‘buy a home in MN! It’s the only way to work towards happiness!’. However, it’s important to remember that this is YOUR experience and applies to YOUR situation, which is why it’s smart to consider buying vs. renting a home in Minnesota. The Antonov Group recommends starting with 3 big questions:
- Does buying fit within your financial circumstances?
When comparing buying a home vs. renting in MN, remember that there are large expenses outside of the actual base price of a home. Ask yourself:
Can I gather the funds for a down payment?– shoudl I go ahead with a 3% down loan or should I save until I have 20% down?
What monthly mortgage payment can I afford, and when considering buying vs. renting in MN, would rent be more affordable for me?– Keep in mind that your mortgage payment is a combination of amortized interest (see our dictionary of real estate terms!), property taxes, homeowners insurance and of course loan principle.
What number of years would be my ideal length for the life of my mortgage? 5? 10? 20? 30?– Longer loan life means smaller monthly payments, however, it also means that over the years of your mortgage, you will spend significantly more on interest.
How would this affect my interest payments?– Remember, your interest will be calculated monthly, so if there are more months in your loan life, then there are more payments added to it. Consider comparing amortization schedules on 15 and 30 year loans and you will see a huge difference in interest paid.
Can you handle the duties that are usually performed by a landlord, such as repairs and maintenance?
If you’re not handy, and no one else in your household is a tool whiz either, you either need to prepare for maintenance expenses, or start learning these skills ASAP. Your home will require all kinds of expected and unexpected care, and when comparing renting vs. buying in Minnesota, these can make a significant difference in your budget. Can you or a member of your household:
Perform daily snow removal/de-icing throughout owning a home in winter in Minnesota?
Turn on/off an outdoor faucets or the main water valve?
Switch out furnace filters?
Test a smoke detector?
Paint walls and repair holes, scratches and wear and tear?
Change toilet flappers?
Climb up and clear gutters?
Cut down tree branches?
Repair any leaks?
If not, it might be worth going back to review buying vs. renting in MN
- Can you handle the emotional work that comes with owning a home?
While it is rewarding, buying a home in MN can also be stressful and take you on an emotional rollercoaster. From choosing your home-buying A-team to committing to the largest investment in your life, to simply preparing for a no-excuses, get it done snow removal plan, this is a major life change and adjustment. The Antonov Group will help you prepare for these conditions, but you have to be ready to update your lifestyle!
Whether you are renting a home in MN or buying a home in MN, The Antonov Group can represent and support you every step of the way. We want to make sure you find the best choice for you, and can start by helping you decide whether to buy vs. rent a home in MN.
