Do you wonder what the difference would be owning a home vs. renting a home in the Albuquerque or Rio Rancho NM area?Albuquerque Home Appreciation

Think about this. When you rent a home for $1,000 per month and leave the home in 5 years you paid $60,000 to a landlord. You did not receive any tax break for the interest deduction. You get nothing back but maybe your deposit.

On the other hand if you bought a home for $200,000 and had a 4% appreciation rate over that 5 years you would gain roughly $40,000 in equity, not to mention you paid down your mortgage say $20,000 and took the interest deduction which saved you money on your income taxes. Now you have a home worth $240,000 and owe $180,000.  Look at what you have accomplished! You have built net worth rather than having paid down a landlords mortgage you paid down your own. Look at it as a forced savings account with interest paid to you. Now does this help you in deciding whether its better to buy or rent? You have to live somewhere and even though value can fluctuate it ALWAYS rebounds.

Example of adjusted mortgage payment:

Home Price $200,000
Monthly Payment $1,168
Monthly Tax Saving $103
Tax Adjusted Payment $1,105

Did you know...


Was the average price gain from 2016-2017 in 20 major markets

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