What If Stability Is The Best Investment

Rent keeps rising, and it can feel like your housing payment disappears the moment you send it. We dig into a different way to look at the decision: what if your monthly payment could help you build wealth, buy you more freedom, and give your family real stability over time?

We walk through the most important benefits of homeownership in plain language, starting with the money side. We talk about potential tax benefits like mortgage interest write-offs (and why even high-net-worth buyers sometimes take a home loan), plus the long-run power of home price appreciation. Then we get practical about equity: how paying down principal turns a required living expense into ownership, and how that can function like a ready-made savings plan as the years go by.

We also cover predictability, because a fixed-rate mortgage keeps principal and interest steady even as rents trend upward over decades. From there, we shift to the lifestyle wins: the freedom to paint, remodel, and truly make the space yours, along with the stability of staying in one neighborhood long enough to build real community ties. And if you’re considering a condo or townhome, our legal minute highlights an important protection: your right to cancel after receiving required disclosures under Minnesota law.

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Transcript

Welcome And How To Reach Us

Jason Walgrave 0:15

And welcome back, folks. This is U.S. Home Talk coming at you every Wednesday at noon Central Standard Time. Jason Walgrave here with Walgrave Real Estate Group and the Minnesota Real Estate Team at Remax Advantage Plus. Also in studio, the great Marcus Walgrave with Hag Realtors. Marcus is uh headquartered out of the great city of Sioux Falls in the great state of South Dakota. We've got uh we also have Mike's not here today, mortgage mic, folks. He has he has so many loans to do. He doesn't even leave the office. He just he doesn't even sleep, he just works through the night. And then of course we've got our fantastic producer, Evan Little. Uh, he is also our insurance guru. So all things insurance with Paragon. Uh all right, folks. What are we talking about today? Reasons to buy a home. A lot of reasons to buy a home. Uh, I still believe that it is uh the American dream, a part of the American dream to be a homeowner. And uh today we're gonna be talking about reasons to own a home. All right. Best way to get a hold of us, of course, is our website, ushometalk.com. Check that out. Um, we've got all of our past shows. Uh you can connect directly with all of us uh here on the show and all of our fantastic show partners. Uh all things real estate. Go to ushometalk.com. We've got a real estate hotline number, 612-234-7585. That is our real estate hotline number. You can call um or text uh during the show. Feel free to send questions over via text. And you can uh send those questions or comments in the comment section on Facebook and YouTube as well. So we do appreciate however you tune tune in, whether it's uh Wednesday at noon or later in the week through all the streaming platforms. Um we we do really appreciate everyone that uh tunes into the show. All right,

Pops Hat And Quick Catchup

Jason Walgrave 2:09

let's do it. Reasons to own a home. But first, Marcus, you like my new hat? I do like it. Pops.

Marcus Walgrave 2:15

I don't I don't I don't have the proper lighting. I was gonna rock a hat today, too.

Jason Walgrave 2:19

But uh so that is it's um as you know, I I I'm a grandfather now, uh Tanian. My daughter Tanian and her husband uh Riley, they had their little baby girl Berkeley about four months ago. So I am a grandpa, um, but I wanted something that sounded cooler, so I got this hat. Actually, actually, Tay got me this hat. It says Pops. Pops. I like it, it looks good.

Marcus Walgrave 2:41

Nope, Evan doesn't like you're just you're just gonna be grandpa. Sorry, man.

Jason Walgrave 2:45

I think you know what? It's funny that you say that, Evan, because Tay was talking about that last weekend. She's like, you know what, Dad? I kind of feel like it's gonna be grandpa instead of Pops. And I'm like, thought I'd be cool, thought I'd be cool, but it uh is what it is. All right, reasons to own a home.

Tax Benefits And Smart Leverage

Jason Walgrave 3:01

Uh tax benefits. There are tax benefits uh to owning a home. Um, one of the biggest ones is the ability to write off the interest uh that you pay. So um if you do a mortgage on your property, it's a principal and interest payment. Usually they also escrow for taxes and insurance. Um, so talk to your accountant. There's tax benefits of owning a home, writing off the interest. Um, you know, depending on your your tax situation, you may not be able to rent uh write off additional things as well. So uh tax benefits is uh is one of the uh one of the reasons to own a home.

Marcus Walgrave 3:36

Jason, I think I just read recently that some of the um world's wealthiest, wealthiest people took out home loans, and you know that's the reason why. I think Zuckerberger did, and I want to say either Musk or Bezos two of those three did in I think in the last like two years. Yeah. Took out a home loan product, and it's like, well, yeah, I mean, if you can write off an incredible amount of um of interest, and uh, you know, if your CPA says this is a good move for you, you know, why not?

Jason Walgrave 4:06

Yeah, and and just depending on you know how you invest your money. I mean, the you know, a lot of folks, especially in the you know, 20, 21, 22, when they're when the rates were really low, um, our cash buyers, they still took out a mortgage because and the reason they did is because their money, their cash was was able to make more or a higher return than the interest rate on the mortgage that they're paying.

Marcus Walgrave 4:31

So not only their financial advisor were saying, What's that a three percent? You know, I mean I can almost guarantee I'm gonna get you eight. Right. So give me your cash, yep. Let me, you know, let me invest it, and and then you go take out this killer, you know, 30-year loan for three percent or whatever, you know, 15-year loan for two and a quarter or whatever those super low rates

Appreciation And Long-Term Wealth

Marcus Walgrave 4:52

were.

Jason Walgrave 4:52

So tax benefits number two on our list reasons to own a home, folks, is appreciation. If you look at the last 50 years, the average appreciation is approximately 4.2 percent. Um, so you know, you buy a $500,000 house, and historically speaking, that home is going to appreciate over $20,000 per year. Um, I mean, it is, you know, we we have we have uh younger buyers that will uh purchase a home, you know, right out of college. They'll purchase a home right out of college, and after four or five years, um that home has appreciated enough to pay off all their debt, all their student loans. You know, and so appreciation is a big deal. Uh, if you're renting, of course, you're not going to realize the appreciation your your landlord is. Um, and and that's why it's number two on the list.

Marcus Walgrave 5:43

I wish we had that chart. Um, we've we've shown it in in past shows. Um, you know, if you ever want to see any of our past shows, you can visit us on our website, ushometalk.com. But it was that the the last 50 years, and it was like um of the last 50 years, or maybe even more, um, there was only like two years where the and this is this is the the entire US housing market. Obviously, it's different from from local market to local market, but as a as a as a whole, I think there was only two years that there was a decrease as a whole, is a decrease in in uh uh uh value from one year over to the year. Yeah, yeah. The other 48 years they saw some sort of appreciation, you know, to and and and so yeah, the proof is in the pudding, right?

Jason Walgrave 6:28

Historical data, just look at it, right? Uh, folks talking about reasons to own a home. Uh, best way to get hold of us is our website, ushometalk.com. We have a real estate hotline number. You can call our text anytime. That is 612-234-7585. Let's go back to our list.

Equity Beats Rent Every Month

Jason Walgrave 6:45

Reasons to own home. Um, number three, equity. Money paid for rent is money you'll never see again. But mortgage payments uh let you build equity ownership interest in your home. Um, and I think that's you know, it's we often use the phrase, uh, hey, look, whether you own or rent, you're making a mortgage payment. It's either yours or your landlords, right? And so um you have an you have an opportunity to build equity um through home ownership. Um equity and appreciation. Equity and appreciation. Sounds sounds like a good deal.

Home Equity As Built-In Savings

Jason Walgrave 7:19

Next on our list, savings. Building equity in your home is uh a ready-made savings plan. What does that mean? So let's say you got a payment and it's a $2,000 a month payment. Um, of course, in the beginning, a larger portion of that will go towards interest, but but some of it will go towards the principal. And the longer you have that mortgage, the more of that payment goes towards the principal. It's for savings. It it it's for it's like you're putting money into a savings account, um, especially if you look at appreciation, historical appreciation data. Uh, so it's it's a great way to um uh make your your live your monthly living expense payment uh a part of your your saving plan. Um, folks, we got three more to do on the list. Let's let's jump over to a uh Jeff O'Brien legal minute.

Condo And Townhome Rescission Rights

Jason Walgrave 8:08

Probably should have given Evan just a little bit of a heads up on that one.

SPEAKER_03 8:12

Well, this is Jeff O'Brien, attorney with Harsh Blackwell with the U.S. Home Talk legal minute.

Jeff O'Brien 8:16

If you are purchasing a townhome or condominium, whether it be new or used, did you know that you have a right to cancel the purchase agreement? Under the Minnesota Common Interest Ownership Act, a purchaser of a townhome or condominium must be provided with a disclosure statement within ten days after signing the purchase agreement. This disclosure statement includes copies of the association documents, the declaration, bylaws, budget, and other information required by law. Once the disclosure statement is provided, the purchaser has ten days to cancel or rescind the purchase agreement. For units being resold by an owner other than the original declarant, a resilled disclosure statement must be provided to the purchaser within the ten-day period. And again, the purchaser has ten days to rescind the purchase agreement. These rescission rights can only be modified or waived in writing in a document separate from the purchase agreement, which is signed no sooner than three days after the purchaser signs the purchase agreement. This is Jeff O'Brien, attorney with Hodge Blackwell with a U.S.

SPEAKER_03 9:01

Home Talk legal med.

Jason Walgrave 9:03

Thank you, Jeff O'Brien. Great info as as always. So so let me ask you, Marcus. Um in comparing last week's show to this week's show, did I did you find that I I was less loud in my breathing? Did I do a better job this week?

Marcus Walgrave 9:18

There's mute buttons. I mean, we all you know have to clear our throat or mute button. Um out of breath and gotta be a little bit heavier than than other people. Well, mine's on my mic. I don't know about yours. So I can just click it.

Jason Walgrave 9:32

I'm cautious to click any buttons during the during the show because it just boots it right out. We're talking about uh reasons to own a home. Best way to get a hold of us, our website ushometalk.com and our real estate hotline number, which you can call or text anytime is 612-234-7585.

Predictable Payments As Rent Rises

Jason Walgrave 9:54

Uh, next on our list, predictability. Uh, unlike rent, which uh by the way, rent uh um on average will double every 20 years. So rent doubles every 20 years, you get a 30-year mortgage, and uh your payment's not gonna change. Your principal and interest payment's not gonna change. Taxes and insurance, if that's escrowed in on the deal, uh, taxes and insurance will likely go up uh because they always do. Um, but your principal and interest payment is locked in, it's locked in for as long as that that loan is, and so uh as a renter, your rent's gonna double every 20 years. Uh, when you own a home, that principal and interest payment will remain the same. So predictability, folks talking about reasons to own a home. We got a couple left

Freedom To Customize Your Space

Jason Walgrave 10:39

here. Freedom is number six on our list. The home is yours, you can decorate it any way you want to. Uh, you can remodel. Um, if you own a condo or a town home, you're going to be restricted. Um, usually the exterior of the property. Uh, some single-family home associations have some covenants, uh, some rules and restrictions. Maybe you can't paint your house uh uh neon pink uh or something of that nature. But but it's yours. You want to put a new carpet, you go for it. You want to paint the interior, you want to do uh you want to invest money into your home, you have the freedom to do that uh as a renter. You you're very limited. You know, sometimes landlords will let you paint, you know, paint some rooms or something of that nature.

Marcus Walgrave 11:21

But um and make sure you get that approved because make sure you get it. You definitely want that security deposit back when that's when you move out.

Jason Walgrave 11:28

So that's exactly right. Folks, talking about reasons to own a home. We got one left on our list. Uh, be sure to check out our website, ushometalk.com. Best way to get a hold of us anytime, of course, uh, is our website and our real estate hotline number, which is 612-234-7585. We're

Stability And Community Roots

Jason Walgrave 11:49

talking about reasons to own a home, and the last one is stability. Uh, remaining in one neighborhood for several years allows you and your family to build um long-lasting relationships uh within the community. I think this one's a big deal, right? Uh it's you know, as a renter, uh we see two-year leases once in a while. Uh, rarely do we see more than than a two-year lease, but uh the reality is is is renters often uh they're moving more. And then the more often you move, the harder it is to build those long lasting relationships within your neighborhood and your community. And so um, you know, I think this stability is a big deal uh for you know folks and and if they have kids and and and the community. So stability is is the last on our list for reasons to own a home.

Marcus Walgrave 12:40

And now it seems like now more than ever, uh that that stability um uh uh desire from our buyers is is is top of the list. It is. Um, we kind of had this is uh a seven, but I mean, you know, in no particular order. But I mean I could argue that that could be one of them, one of the most important. And you see that, right, Jason, we'll go into neighborhoods where it's like, okay, homes do not sell in this neighborhood. Yes. Um, you know, they they rarely do they go to the market. And when they do, what happens? Bidding more. Yeah, you know, there's been 40 people who wanted to get into this neighbor for the last 10 years, and when that market hit when that house hits the market, I mean it it's like everybody wants to get it, but then you go to a different neighborhood where it seems like turnover is is once every two years, people are are moving in and selling, you know, that's not nearly as desirable. And that's kind of that stability. You kind of want to okay, you know, we we we uh um did a house tour and we saw the neighbors in the back, and looks like they got a couple kids and they're playing, you know, sports. Well, we got kids, we like sports. This could be a really cool you know relationship that we build with our neighbor that we never thought we were going to. Let's make a move on that house. So I mean, I I I'm completely agree with that. Not that I was disagreeing with the other ones, but that stability is is key right now.

Jason Walgrave 13:58

Yeah, it it's a it's a big deal. I've got I've got one set of buyers and and they want a specific neighborhood in prior league. I we've been looking for two years.

Marcus Walgrave 14:09

Yeah.

Jason Walgrave 14:09

And I think there's and do you think you're the only one looking? Oh, I know I'm not in that neighborhood. Yeah, because we we've gone door to door, we've sent out letters. I mean, there's and there's probably only 45 home, maybe 40, 45 homes in this little neighborhood. So very uh highly desired. Um, and so but you're right. I mean, people when they move in there, and here's the other thing interesting about this specific neighborhood. Um, we are seeing some some sales, um, but many of them are from uh parents to kids. And and so so they're you know, so they're selling, but they're selling within the family because they grew up there and they want to stay in the neighborhood, and yeah, you know, the parents or grandparents they want something smaller or one level or whatever the case is, and so you're seeing some transfer, some deed transfers that are just going from parents to kids or grandparents to grandpa grandkids, and so it's pretty cool. Pretty cool.

Marcus Walgrave 15:05

Yep, that is cool, folks.

Jason Walgrave 15:06

We

Final Thanks And Sign-Off

Jason Walgrave 15:07

do appreciate you tuning in this week to our show. This has been ushometalk.com. Uh, go to uh our website anytime. We have the real estate hotline number, which is six one two three four seventy five eighty-five. And again, thanks for tuning in, whether it's Wednesdays at noon or later in the week uh via streaming platforms. We do appreciate um every single one of you and uh look forward to uh being back.