Real Estate Information Archive

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 [email protected].

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

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: [email protected]

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

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

There are many renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage – either your mortgage or your landlord’s. Many renters also think they do not qualify to purchase a home. We have found that in most cases they are qualified and sometimes their new mortgage payment will be less that their current monthly rental. Get your Free Report, click here: Why Rent When you can Buy!

As The Joint Center for Housing Studies at Harvard University explains:

“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.  

That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”

Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:

“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”

As an owner, your mortgage payment is a form of ‘forced savings’.  This savings allows you to have equity in your home that you can tap into later in life. You equity will also tend to grow as market values increase and your principal decreases. However, as a renter, you guarantee your landlord is the person with that equity.

Why not start building your own equity? Contact Pete Veres, ABR –Accredited Buyers Representative for a Free Buyers consultation and learn the steps to homeownership. Feel free to call Pete at 505-362-2005. 

Pete Veres, with RE/MAX Elite in Albuquerque, NM wants to share the following update. RE/MAX CEO on Bloomberg TV: A New Reality for U.S. Real Estate.  Dave Liniger, co-founder at Re/Max, talks with Brendan Greeley about the strength of the U.S. housing market, the appeal of home ownership to millennial, and the role of housing in the U.S. economy. He speaks on "Bloomberg Markets." (Source: Bloomberg)

Dave speaking about renting vs buying? In the local Albuquerque market we have a demand for rentals, rents are increasing and what that show us that there is an opportunity to invest in real estate. It is also a great time for renters to buy however many renters don’t realize that can qualify for loan and in most cases even for as low as $500.00 down. Please click here to find out how:www.abqrentfree.com Dave also talks about what millenials are doing. We are seeing millenials very active in the Albuquerque Area market. Interest rates are still at all-time lows and we are seeing inventory decreasing in the Albuquerque market. In fact, Pete Veres, Certified Residential Specialist and top RE/MAX Agent in Albuquerque quotes “ We are seeing inventory problems in specific areas and price ranges for one story homes”. Please let us know how we can help with your specific real estate requirements. Contact Pete Veres at 505-362-2005. You can also track homes for sale, homes sold and pending in your local area with our free market snapshot. Just visit this free resource at: www.abqmarketinfo.com Thank you.

Buying a house is still more affordable than renting a place with similar square footage in 58 percent of U.S. housing markets, according to RealtyTrac.

RealtyTrac released its 2016 Rental Affordability Analysis last week and found it's cheaper to buy a house than rent in Bernalillo and Sandoval counties.

The report looked at average three-bedroom rental units and homes in 54 counties across the U.S., and compared numbers from the U.S. Department of Housing and Urban Development (HUD) as well as weekly wages through the Bureau of Labor Statistics.

In Bernalillo County, RealtyTrac found the average wage earner would spend 36.6 percent of their income on a monthly home payment, compared to 37.7 percent of their income on rent. In Sandoval County, the disparity was even more apparent, with residents having to spend 33.8 percent of wages on a home, compared to 39 percent of take-home pay on rent.

Pete Veres, Certified Residential Specialist with RE/MAX in Albuquerque, NM agrees that buying a home in many cases may have a lower monthly payment. You can also have some tax benefits and build equity for yourself. Most buyers are not aware how easy it is to get a Free Loan Pre-Qualification. In fact, some buyers may even qualify for a downpayment as low as $500.00. For a Free Report click here: Why Rent When you can Buy?

RealtyTrac vice president Daren Blomquist said with rents rising faster than wages in most markets, it may be a good time to buy for new homeowners.

In markets such as Albuquerque, New Mexico, where home prices are still relatively affordable, 2016 may be a good time for some renters to take the plunge into homeownership before rising prices and possibly rising interest rates make it increasingly tougher to afford to buy a home.

On the other hand, RealtyTrac found it's cheaper to rent than buy in Santa Fe County. The average Santa Fe worker would have to spend more than half of their income to afford a house payment in The City Different, compared to about 39.1 percent on rent.

As expected, it's cheaper to rent than buy in bigger markets on the coasts and in Texas. RealtyTrac has an interactive map showing four New Mexico counties and data from other states. Click the map below to view the interactive map.

Pete Veres wants to share the RE/MAX National Housing report. RE/MAX researches 53 major metropolitan markets every month & analyzes the data to get a pulse on the US housing market. Here are some highlights from this months report in the quick video. If you would like to get a copy of our Complete Albuquerque Real Estate Market report please call me at 505-362-2005505-362-2005  or email me at [email protected]. You can also click here to see the October Albuquerque Real Estate Market Update Summary.

Pete Veres wants to share the RE/MAX National Housing report. RE/MAX researches 53 major metropolitan markets every month & analyzes the data to get a pulse on the US housing market. Here are some highlights from this months report in the quick video. If you would like to get a copy of our Complete Albuquerque Real Estate Market report please call me at 505-362-2005505-362-2005  or email me at [email protected]. You can also click here to see the September Albuquerque Real Estate Market Update Summary.

Buying a Home: What does your Buyers Agent do for you? Part 1 

By: Pete Veres, CRS, ABR - Accredited Buyers Representative

Helps arrange financing.

1. Assist in locating sources of mortgage loans and options

2. He helps you review how much you can afford but how much you may want to spend.

3. He will provides assistance in comparing different financing options.

4. Helps provide information on purchasing incentives that may be available.

Assist in finding the right property.

5. Identify your needs and wants in a property.

6. Find appropriate available properties.

7. Set up an automated e-mail alert system that immediately notifies you of properties that fit

your requirements.

8. Sort through inaccurate information about homes in the area.

9. Provide ready access to all MLS-listed properties.

10. Network with other agents for properties not yet in the MLS

11. When required he can preview properties prior to showing.

12. Help select the proper homes for viewing that meet your needs

13. Aid in narrowing your search until you have identified your top choices.

14. Schedule all appointments to view homes

15. Assist in analyzing the pros and cons of each property.

17. Help you in evaluating properties for suitability, affordability, and resale value.

Most poeople who rent think they can't afford to buy a home. THINK AGAIN! We just closed a client who was rents and they ened up saving $200.00 a month on their rent and the bonus is they Own a Home!