Albuquerque Homes Cheaper to Buy Than Rent
Albuquerque homes are cheaper to buy than to rent! Why do you continue to rent when it is cheaper to buy? You can buy very nice Albuquerque homes for $200,000 and under. The mortgage payments on Albuquerque homes priced at $200,000 is about $1250 including principle, interest, taxes, and insurance with a 3.5% down payment. The mortgage payments on Albuquerque homes priced at $150,000 is about $1000 including principle, interest, taxes, and insurance with a 3.5% down payment. These payments assume a 30 year mortgage with 4% loan. Interest rates are at or near all time lows and a 4% interest rate is very typical, and this is a fixed rate! Rents have been climbing at a rate of about 3.5% per year and most forecasters expect this to continue. Rent on Albuquerque homes valued at $200,000 will cost you $1200 to $1500 per month, depending on location and condition. Rent on Albuquerque homes valued at $150,000 will cost you $1000 to $1200 per month, depending on location and condition.
Why Is It Cheaper To Buy Versus Renting Albuquerque Homes?
There are several reasons why it is cheaper to buy Albuquerque homes than to rent. The main reasons are that home prices have seen a dramatic decrease in value in recent years and interest rates are at or near all time lows. Have you ever heard the saying to buy low and sell high? Well home prices are low and interest rates are low, this means it is a grat time to buy Albuquerque homes. Albuquerque homes are decreasing in value and rent on Albuquerque homes is increasing. This is due to a simple economics rule called supply and demand. Simply stated, there are more renters than ever before. There are more renters because many people can’t qualify for a loan or other people don’t want to buy now for fear that Albuquerque homes will continue to decrease in value. My expectations are that Albuquerque homes will continue to decrease in value for the next two years before hitting bottom. If you are looking for a place to live for the next few years, your best option is to rent. It is my opinion Albuquerque homes will increase in value in the longer term. If your long term plans are to stay in one place, now is a great time to buy Albuquerque homes. One last item to consider is your interest payments on a mortgage is tax deductible and will save you $100 to $150 per month on the cost of owning Albuquerque homes.
Albuquerque home builders are offering great incentives to home buyers due to the existing slow market. One last tip, winter is the best time of year to buy a home in Albuquerque because as temperatures drop so does the number of home buyers. Many sellers want to sell and are willing to negotiate and will take less for their home. Call us at 505 401-7500 if you are interested in buying a home in the Albuquerque metro area.