This leads many renters to ask, “Should I Buy instead of Rent?” It is a continuing dilemma facing many would be first time homebuyers. It also creates a lot of discussion and sometimes debate. So why is “Rent vs Buy?” such a tough question to answer? There are many variables in a home purchase investment. The biggest is location which can often determine the price of a home. We used to be blessed in the Minneapolis/St. Paul with reasonably affordable real estate. It wasn’t long ago where a first time homebuyer could get into a solid starter home for under $200,000. Now with higher rents and extremely low housing inventory, those homes are snapped up as soon as they list and often with multiple offers. This low inventory has driven prices up but as rent continues to increase, it still makes a home purchase very attractive.
But as mentioned earlier, several other factors do come into play when deciding whether renting or buying makes more sense to an individual’s needs. Taxes, insurance costs, maintenance, utilities, mortgage rates and how long you plan to stay in the home are a few of the things that need to be added into the rent versus buy equation.
So, how do you best decide whether Renting or Buying is the best choice for you? Check out the NY Times Rent VS Buy Calculator. This is an interactive tool where you will be able to adjust the graphs to what is happening in your market, your life and your future. The tool calculates where the breakeven rent versus buy point would be for you.
Need additional help to decide if buying a home is right for you? If you are buying, selling or relocating to Minnesota and need help from a professional REALTOR®, give me, Teri Eckholm of BOARDMAN Realty, a call or visit my website for a FREE Home Buyer Success Guide or FREE Home Value Report. I specialize in acreage and lakeshore properties in the north and east Twin Cities metro area including Ham Lake, Lino Lakes and all communities in the Forest Lake School District! Serving Anoka, Chisago, Ramsey and Washington Counties in Minnesota.
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