Benefits of Home Ownership in the Twin Cities
Owning your own home instead of renting has numerous benefits. Owning a home in the Twin Cities has even more. Not only do the Twin Cities have a variety of activities to offer the whole family, and boast impressive schools and job outlooks – it’s also got some of the best neighborhoods in Minnesota. Deciding to purchase a home is a significant one. Make the right choice by settling down in the Twin Cities and enjoy an excellent quality of life for you and your family. Discover ten Advantages of Owning a Home:
No, we’re not talking about the property tax you pay, but the deductions you can claim for paying it. At tax time, you can deduct both the mortgage interest and the property tax that you’ve spent from your annual income. As a new homeowner, this should be especially exciting to you, because during the first year your mortgage pays off mostly interest.
2. Credit and Equity
Owning your home and paying a mortgage can help you build and maintain your credit and equity. Both of these things have the power to determine what you can lease and finance in the future. For example, if your washer and dryer quit working, you can go to Lowes and finance another set. This funding wouldn’t be possible if your credit and equity reports aren’t showing the top scores.
Your equity is the portion of the house that you have already paid off. So, if your loan started at $100,000 and you have paid off $25,000, then the equity of that home is worth $25,000. Every time you pay on your mortgage, your equity goes up.However, while a mortgage has the power to increase your credit and equity, it can also damage it if you don’t make your payments on time. When you understand and maintain a good FICO score, you give yourself an advantage with future purchases. As you make your payments and pay off the mortgage loan, your score will go up in increments.
Both scores show lenders that you are willing, capable, and responsible enough to make your payments on time. Therefore, it lets them know that they can trust you to pay them back if they decide to lend to you. If you miss a payment, your credit and equity can drop quickly. So make sure that you’re making your payments on time.
When you purchase a home, you invest in the future. Over the course of time, your home’s value will increase. On average, it will rise three to four percent annually. What this means is that what you pay for your home now, has the potential to double in the next 20 years. In turn, you make a profit.
Appreciation rates in the Twin Cities have increased since 2000. The average home value in January 2000 was around $100,000. Near the end of 2017, the average price was $143,000. In 17 years, the value of homes increased by over 60%. The Twin Cities’ appreciation advantage makes home ownership incredibly desirable.
Taking care of your investment can help your home gain appreciation and value for later on when you’re ready to sell. Regularly keep up with the maintenance of the home, repairing and fixing issues promptly, and add features that enhance the home’s appearance over time. You’ll be glad you did when it’s time to sell your home.
4. Moving on Up
Because of the equity and appreciation your home will gain over time, owning your first home can help you to move to a house that is bigger and better in the future. On average, first-time home buyers put three percent down, while second time home buyers put down 22%. These statistics are partially due to the payout on the sale of your first home. Plus, the credit and equity ratings you gained from making all your mortgage payments on time help to secure financing for your next home purchase.
5. High-Ranking Variety of Neighborhoods
The Twin Cities offers a variety of neighborhood styles. We can help you find the one that’s right for you.
- Ranking as the number one neighborhood to live at in Minnesota is Linden Hills. This community contains 7,000 people from diverse cultures and backgrounds. With an A-plus rating for families, this neighborhood provides a safe and engaging environment for your family for years to come.
- Coming in second is Macalester-Groveland in St. Paul, MN. This neighborhood is much more prominent with 20,000 occupants, but it still maintains an A-plus rating, quality schools, and low crime rates.
- The third best neighborhood in the Twin Cities area is Lowry Hill in Minneapolis, MN. With a smaller community of just 3,000 people, its low crime rates and diverse population is sure to make you feel safe and welcome. Plus, there are some impressive houses in this neighborhood from which to choose.
- The fourth best neighborhood to live in within the Twin Cities is Lynnhurst in Minneapolis. Over six thousand people diversely populate this community, and the area offers several shopping opportunities and A-rated schools. Lynnhurst has low crime rates and beautiful homes for sale.
The decision to buy a home involves many vital factors. You want to ensure a quality life for you and your family by providing the activities, top schools, and best neighborhoods that fit your family.
You are making an impressive choice by settling down in the Twin Cities area. Home ownership comes with its perks, and purchasing a home is an excellent investment to prepare for your future. Select from several exquisite homes in the Twin Cities. Enjoy high-quality schools and low crime rates in the Minneapolis-St. Paul area.
The various neighborhoods offer engaging communities that will provide plenty of amenities to fully enjoy the life you’ve always wanted. The decision to purchase a home in the Twin Cities is one that will reward you for many years to come. Contact Twin City Lending to secure your Twin Cities advantage today.