Real Estate Information Archive

Blog

Displaying blog entries 1-10 of 17

It Is Now Cheaper To Buy Than To Rent By 26.3%!

by Elite Asset Management Team


In 98 of the 100 largest metro areas in the United States, it is cheaper to buy than to rent with a 30-year fixed rate mortgage, according to a recent report done by Trulia.

This report is the Rent vs Buy report. The 97 of the 98 metro areas are on a double digit advantage when it comes to how cheap it is to buy vs rent.

The map below shows the metro areas that were studies and how cheap it is to buy rather than rent. The darker the blue, the cheaper it is.

Here’s how Trulia calculates the true cost of rent vs buying.

Trulia includes all assumed renting costs, including one-time costs (like security deposits), and compares them to the monthly costs of owning a home (insurance, mortgage payments, taxes, and maintenance) including one-time costs (down payments, closing costs, sale proceeds). They also assume that households stay in their home for seven years, put down a 20% down payment, and take out a 30-year fixed rate mortgage.

Six year study chart:

It shows the impact of the median home price, rental price, and 30-year fixed rate interest rate used to calculate the ‘cheaper to buy’ metric.


The average mortgage rate back in 2016 was the driving force for making it 41.3% cheaper to buy a home. Rates have been the highest in six years but buying a home remains cheaper.

 

Cheryl Young, Trulia’s Chief Economist, had this to say,

“One point deserves emphasizing: The ultra-costly San Francisco Bay Area is not a harbinger for the nation as a whole. While renting may outweigh buying in San Jose and San Francisco, it is unlikely that renting will tip the scales nationally anytime soon.”

Aside from being cheaper than renting, owning your own home has a lot of advantages. Home values are always rising and you wouldn’t want to miss out on equity.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

 

Rent Still Rising According to Reports

by Elite Asset Management Team

 

If you’re renting your home you probably already know that rent has continued to rise since you first started renting. You’re already losing money by renting and not having home equity and with rent continually rising you’ll be losing a lot more in the long run.

From the 2018 first quarter median rent numbers from the Census Bureau, this graph shows rent increases from 1988 until today:

Based on this graph, you can see that rent has steadily risen over the past few decades. With this information you can somehow guess that it will still continue to rise. Consider buying a home. Lock in your monthly housing expense. Start building equity.

Talk to a realtor and find out what your options are. It doesn’t matter if you’re thinking of buying tomorrow or a few years from now, learn as much as you can. There may be options available for you today that might not be there when you finally decide to buy a home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Survey Says: Ages 50 Below Wants to Own a Home

by Elite Asset Management Team

 

According to the Survey of Consumer Expectations (SCE) by New York Federal Reserve, which has a wide range of topics including inflation, labor market, household finance, credit access and housing, a lot of people under 50 want to own their own home.

The question was, assuming you had the financial resources to do so, would you like to OWN instead of RENT your primary residence?

More than three quarters of people aged 50 below answered they would want to own a home rather than rent. Half of the people over 50 preferred the same.

Here’s a chart with the complete details.

They were also asked about the chances of them owning their own home and 66.4% of those under 50 said they were going to have their own home eventually. Some of the  people over 50 ,23% of them, didn’t want to own their own home.

 

It seems that according to the survey, most of the young people are still interested in buying.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist & ABR – Accredited Buyers Representative who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience, excellent negotiating skills and a superb track record.

You can contact him by calling or texting him at 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com


Owning a Home Still Better Than Renting. Why?

by Elite Asset Management Team

 

A lot of people are still renting even though owning a home has great financial benefits. Why is owning a home better than renting? That is a very easy question.

According to Zillow:

“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”

Why is it financial better to own a home? Here’s why.

1. Top 5 benefits

  • Owning a home is like having forced savings.
  • It is cheaper to buy than to rent.
  • It’s the only investment where you can live inside it.
  • Locked in monthly housing cost
  • Tax savings

2. Net worth is 44x greater than that of a renter if you own your own home.

3.If you bought a home in early 2017, in just 5 years you could build more than $48,000 in wealth.

4. Your rent isn’t just rent. Included in the rent are probably the taxes, the money needed for repairs and profit for the landlord.

However you look at it, owning your own home is better financially than renting.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Should You Own Your Own Home? 5 Reasons Point to Yes!

by Elite Asset Management Team

Homeownership is now gaining momentum. It is now rebounding from recent lows and is going the right path. Everyone has different reasons to buy a home. Owning your own home is a dream come true and it gets better.

 

Here are 5 financial reasons why you should buy a home.

  • Equity – With your monthly mortgage payments, you build equity. You can put this towards home repairs or renovations, pay a debt, or even set it aside for your child’s education.. When you rent, your landlord gets that equity.
  • Save on Tax – Who doesn’t want to save on taxes? You can deduct your mortgage interest, profits from selling your home, and property taxes. Speak with an accountant to be sure which taxes can be deducted in your area.
  • Steady Housing Cost – Rent gets higher as years pass. When you purchase a home, you get to pay a fixed amount each month. You home value may rise due to inflation, but you’ll still be paying the same amount monthly.
  • Renting is more EXPENSIVE – You may not believe it, but it’s true. According to a report done by Trulia, it is now less expensive to own a home than to rent. About 37.4% less to be exact. It varies depending on the location, but it ranges from 6% cheaper in San Jose, CA to 57% cheaper in Detroit, MI.
  • Home and Investment – Your home is an investment. The price will continue to rise as years pass which will result in more money if you decide to sell it. And you can live in it. You can live your life and build memories and also earn at the same time. Owning your own home seems like the smartest move to me. What do you think?

 

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Buy or Rent? Buy! It’s Cheaper in 39 States

by Elite Asset Management Team

 

According to Trulia’s latest report, with a traditional 30-year fixed rate mortgage, owning a home is cheaper than renting. This is within the 100 largest metro area if the U.S.

In San Jose, California, the average is at 3.5% less expensive, a whopping 50.1% less expensive in Baton Rouge, LA and, 33.1% all across the U.S.

In 39 states, owning a home is cheaper according to a study done by GoBankingRates. The map below shows the states where it’s cheaper to own a home.

 

With interest rates at an all-time low, it’s one of the main reasons why it’s cheaper t own a home than to rent. The current interest rate on a 30-year fixed rate mortgage is 3.91%, according to Freddie Mac. The interest rate would have to be more than twice in order for rent to be cheaper than buying.

I’m sure you already know the pros of owning a home: full control of your property, gradual increase in equity, building new memories, and celebrating special occasions with family and friends. When you really think about it, there’s no reason not to own a home.

Meet with a realtor like Pete Veres, CRS – Certified Residential Specialist, SRES – Senior Real Estate Specialist who can help you navigate thru the process and get the job done for you. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

You can contact him by calling 505-362-2005 or by emailing him at Pete@nmelite.com.

He has a great website full of the latest information at www.NMElite.com

Most Americans Believe Buying a Home is a Good Financial Decision

by Elite Asset Management Team

 

The National Association of Realtors conducted a survey called the 2017 National Housing Pulse Survey. According to the survey, most Americans (around 84%) believe that buying a home is a good financial decision.

Here are the major reasons:

Various Tax Deductions

This could be for state, federal and local income taxes.

Mortgage Paid Upon Retirement

By the time you retire, by owning your home, your mortgage could be fully paid.

Building Equity

Instead of paying the rent, you’re building equity by paying your mortgage.

Increase Net Worth

It increases long term wealth and your net worth.

Stable Monthly Payments

Unlike rent which can increase a huge amount over time, monthly mortgage payments are stable and predictable.

 

Bottom Line

Homeownership has always been and still is a crucial part of the American Dream. As our local Albuquerque Market is turning around now is the time to buy. Contact Pete Veres so he can help you get started.

Owning a Home and Its Benefits

by Elite Asset Management Team

 

Owning a home has a lot of benefits. Some people might not know it, but it is actually better than renting and has a lot of advantages.

Here are some benefits from a report done by Freddie Mac.

Home Improvements

If you own your home then you have the freedom to improve the home however you like. From the colors to structural improvements, you can change anything on it to fit your lifestyle. Improving the home might also increase the value.


Payment Stability

Monthly payments are more stable when owning a home rather than renting. Rent continues to rise while fixed mortgage rates allow the stability of a constant monthly amount of payment.


Tax Benefits

You get tax deductions from owning your own home like imputed rent, mortgage interest deduction, property tax deduction, profits from home sale, and more. This is based on the Tax Policy Center’s Briefing Book.

 

Build Equity

Reports indicate that a homeowners net worth is 36 times greater than that of a renter. This is based on a survey done by the Federal Reserve.

According to the National Association of Realtors it is 45 times greater.

 

These are just some benefits of owning a home. If you think about it, it is really better than renting. The community also gets better by being a part of the neighborhood and interacting with your neighbors.

Now, the question is, where do you start?

You can start by meeting with a realtor like Pete Veres, CRS – Certified Residential Specialist who can help you find your dream home. Pete Veres has had over 25 years of Sales & Marketing experience and excellent negotiating skills.

Pete provides his potential clients a face to face buyers consolation meeting, will explain the home buying process and also help connect you with a local lender to provide you with a free loan pre approval.

You can contact him by calling 505-362-2005 or by emailing him at Pete@nmelite.com.

You can also track homes for sale in your neighborhood by visiting http://www.abqmarketinfo.com

The Best Time to Buy a Home is Now! Here are 5 Reasons Why

by Elite Asset Management Team

 

Are you planning on buying a home? Are you ready? It would definitely depend on your current situation and your finances. It is a very big decision so here are some reasons why now is a good time to buy.

 

1. Rising interest rates

Interest rates have been rising since late last year when the Federal Reserve increased its benchmark interest rate by a quarter point in December and in March. There are about three more upward adjustments within 2017 according to experts.

It is expected that the trend of increasing interest rates is expected to continue. Securing a fixed rate loan for current homeowners with an adjustable rate mortgage is advisable before rates increase further.

 

2. Buying may be cheaper than renting

Buying now may be able to save you more money in the long term than renting if you’re living in one of the larger metropolitan areas. It is generally cheaper to own than rent in these areas.

You have to put into consideration al the expenses like mortgage interest expense, repairs, closing costs, taxes, among others. To have an accurate cost comparison, divide the cost of expenses over total number of months you plan on staying in a home.

 

3. Increase in home prices

Home prices have increased over the years since 2007 when the housing crash occurred. It has outpaced renting costs in the past months. Now is the time to buy if this trend continues as it may be more expensive to buy than rent later on.

Home prices are projected to rise over the course of 2017 according to Fannie Mae, Freddie Mac, the National Association of REALTORS®, Kiplinger, and the Mortgage Bankers Association.

The increase averages to 4.9 percent based on the experts’ predictions.

 

4. Shrinking inventory

There are a lot of people right now who were hesitant to jump in during the housing bust and are now in the market for homes and this means the inventory is getting low. It is expected to decline further in 2017 especially for median- and low-priced homes.

Parts of the market with the smallest inventory are moderately priced homes which are homes that millennials are interested in. These buyers, who were born after 1980, are the majority of the buyers now ready to jump into the market.

 

5. Supply and Demand

Since median-priced homes are scarce, buyers compete over them and this makes the prices go up. This is basic supply and demand. Being in a seller’s market makes it difficult for buyers to negotiate a good price as well.

With the increase in prices and rates, some buyers may stop their search for a home and this would give an advantage to those who remain in the market since they would have more leverage to negotiate with sellers.

If you are thinking of buying please get with Pete Veres, CRS – Certified Residential Specialist and set up your free buyers consultation and he can also help provided you with a free loan free approval. Pete is at 505-362-2005, email: pete@nmelite.com

 

Also check out his free home search app Pete Veres- REMAX on apple or android.

  

Buying a Home is Cheaper than Renting by 33.1% in the US

by Elite Asset Management Team

 

According to the latest Rent vs Buy Report from Trulia, in the 100 largest metro areas in the United States owning a home is cheaper than renting with a traditional 30-year fixed rate mortgage. This also holds true here in Albuquerque as rentals homes are in demand.

In Baton Rouge, it is 50.1% less expensive, 3.5% in San Jose, CA, and 33.1% nationwide.

Report Findings Include:

Interest rates are still low. Appreciation of home prices still lower than rental appreciation. Most important is that you build equity owning vs. renting states ‘Pete Veres’. Why pay someone else’s mortgage?

Changes in mortgage interest rates have a great effect on the shifts in the Rent vs Buy decision, with rents and home values moving in tandem. Most renters think they can’t buy but that’s why it’s important to get with an experienced realtor and lender and put a plan in place. Most people are very surprised when they find out they qualify to buy and in most cases save money!

For renting to be cheaper than buying, the rates would have to jump to 128% increase which would be 9.1% from the current average of 4%. That has not happened since 1995, according to Freddie Mac

Based on this study, buying is definitely cheaper than renting. Buying will be a sound financial decision which saves you money. You can still find programs for as low as $500.00 down. Contact Pete Veres, ABR – Accredited Buyers Representative to schedule your Free Buyers Consultation to learn about the simplicity of buying a home. Also feel free to check out some excellent buyers resources at: VIP-Buyers-Resources

Displaying blog entries 1-10 of 17

Syndication

Categories

Archives

Contact Information

Photo of Elite Asset Management  Real Estate
Elite Asset Management
RE/MAX Elite
8300 Carmel Ave. NE Ste. 201
Albuquerque NM 87122
(505)362-2005
Reviews on Zillow
4417042
"Professional and Knowledgeable about real estate in the area, patient with difficult customers like me and my wife (who occasionally wanted very ... more "
5.0/5.0
by rezaarghavani
4279664
"We interviewed the top 4 realtors in our zip code and Pete was at the top of the list. His presentation was professional and well thought out. ... more "
5.0/5.0
by chuck tabbert