Both buying a home and renting a home in Minnesota have their advantages. You need to decide which is better based on your current circumstances and your future goals. The pace of home sales and the blend of historically low interest rates make it easier to purchase a home. The combination of market conditions and helpful government programs in Minnesota provide excellent opportunities for Minnesota first time buyers, as well as for current homeowners hoping to downsize or to buy a larger home.

Owning a home is always the “American Dream”. It’s an exciting time to be considering buying a home in Minnesota now. Are you ready, Minnesota home buyers?

Favorable factors of  buying a home in Minnesota

• Historically low interest rates. If you were buying or refinancing in 2001, you’d face mortgage interest rates slightly above 8 percent. Today’s lower rates translate into comparatively lower purchase costs.
• Decreasing housing prices. Minnesota home prices have finally dropped enough to create a buying opportunity for first time buyers in Minnesota. Nationally, prices are down 32% from their peak, set in 2006.
• Assistance Programs
  Eligible Minnesota home buyers could benefit from the current government incentive programs designed to stimulate the housing market and the economy.
• Slow home sales. The longer homes are sitting on the market, more choices for Minnesota home buyers and a better chance of finding the home that you want.

Financial benefits of buying a home in Minnesota

Minnesota Home Ownership

There are many benefits to owning a home in Minnesota rather than paying rent to someone else every month. Depending on the home you purchase, your monthly house payment could be the same as or less than the rent you’re paying. Buying a home in Minnesota not only  helps you avoid the ups and downs of the rental market but also allows you have the ability to remodel and redecorate the home to match your needs and desires.

Income Tax Benefits

Unlike renting, income tax laws allow homeowners to claim tax deductions for the interest paid on their mortgage.

Potential tax savings

With a mortgage, you may be able to deduct your interest payments and property taxes from your taxable income.

A Forced Savings Plan

Paying off a mortgage is a forced savings plan, said Baker. The mortgage bill comes in every month, you pay it and the mortgage balance goes down. Renters, meanwhile, are just as likely to spend their savings and wind up with less money than homeowners.

Potential equity growth

Over time, the mortgage balance decreases and equity builds, even if the value of the home does not increase. You may be able to borrow in the future against the available equity in your home to pay for education, medical expenses, home improvements and other needs, at typically lower interest rates.