Non-Financial Reasons to own your Albuquerque home
(Transcript Snippet): ” Tego:
On a side note on that, you know, I told you about, I think you listened, oh, I made you listen to, I made you that podcast from, gosh, I can’t think of his name and I’m sorry, the CEO of Homeland,
Tracy:
Right from Santa who’s based out of Santa Fe.
Tego:
Yeah. Santa Fe Albuquerque. And they, they really specialize in, in homeownership, helping people that may be one, otherwise have the opportunity to participate in homeownership, have that opportunity
Tracy:
That would be priced out of the market. Yeah. Yeah.
Tego:
And They, they have a whole thing to have coaching and they have a bunch of things to help people get into home ownership. And he said something that’s really stuck with me. And that is that home ownership is affordable housing because he talks about, you know, that, that
Tracy:
How much rents have increased, how much rent is increased,
Tego:
But that when you’re a homeowner, you know, for the most part, your cost of housing, this is a national stat, 10, your cost of housing is 10% less than renters as a whole. And I thought that was important, but okay. I was going to say, I was going to say the nonfinancial and here we go. I’m going all financial,
Tracy:
That was Jesse Abrams, with Home Wise
Tracy:
Really interesting. And since you brought it up, let’s talk about that just a little bit longer. Okay. So, you know, well,
Tego:
It’s so funny, we started off that. We’re not going to talk about the financial reasons for owner home ownership, which there’s a bunch of them we’ll get to that, but go ahead. No, this is, well,
Tracy:
One of the things that really struck me that I hadn’t hadn’t really, I mean, I’ve heard it, but I, the way he said it, I really understood it. And I probably won’t be as eloquent as he was in his podcast or the interview
Tracy:
Or the podcast. Yeah. But it was an interview.
Tracy:
But so he said, you know, if you look at generational wealth and going back to the 1940s and fifties and sixties, when women and people of color perhaps were not allowed to purchase homes or were not allowed to have loans, right. They weren’t given the opportunity in those families to build wealth through owning real estate. So when you know, the grandparents and parents of those folks passed on, they weren’t leaving a house that had a hundred or $200,000 worth of equity to the family to continue on with their wealth building because they weren’t homeowners. They were renters. And when he looked at how rents have increased proportional to housing costs, rents have increased considerably. And housing costs are still more affordable, especially in our market than than renting, right. Rents go up every year and your mortgage, once you lock it in tens to say the same, except for taxes and insurance. And we talked about that, but
Tego:
It’s funny how you hear something, it just clicks and you go, yeah, your, your mortgage cost doesn’t reset every year. Your rent for the most part resets every year.
Tracy:
Right. But the whole thing about how generational wealth and building wealth and families, and being able to leave it for the next generation, some, some sort of amount and you know, not everybody leaves the value of their equity in their home to somebody. A lot of times they turn that into cash to take care of themselves in older age. Right. So that they can maintain a lifestyle. Right. For sure, that’s a reverse-mortgage thing.
Tracy:
Or equity line of credit or kind of the same thing, but right. Yeah. Home equity line
Tego:
Of credit in a, in a reverse mortgage
Tracy:
Are very different, similar, but different, very different.
Tego:
It’s tapping into the equity in your home. Okay. So the non-financial reasons to own, to be, to be a homeowner. And I know there’s a bunch of people out there that think, we shouldn’t be saying that people should buy homes right now because the market’s gone crazy and prices have gone through the roof and there’s going to be a bubble that’s going to burst. Well, I think the question you always have to ask is, okay, well, where are you going to live?
Tracy:
You’re going to live somewhere. Yeah. Are you going to pay my money to live somewhere? Should you be paying somebody else’s mortgage? Or should you be paying your own?
Tego:
And I believe if you’re gonna, you know, be in your home for awhile, you’re you’re going to be just fine. Right. And okay. So non-financial reasons to own a home
Tracy:
Private very much so. Yeah. Yeah. Having a space that’s safely your own. Yup. Yup. Yup. You can
Tracy:
Choose who’s there. You don’t have a landlord saying I’m giving you 24 hours. Notice we need to come in and inspect your place or whatever.
Tego:
Yep. Yeah. It’s yours, you know, it’s, it’s your private space? I think stability is a big deal and I, I know, you know, that, that whole thing about Muslim, you know, hierarchy of needs and that, you know, okay, once you have food and shelter and whatever, you know, the next thing you need is security. And stay-put stability goes along with that and having a house and stability to go with that, I think is a, is a big deal. One of the things that I think people overlook is personal expression, but you don’t have to ask the landlord if you can have, you know, the dog, right. You can’t, you don’t have to ask the landlord. If you know, I can paint that one wall orange. Right. I don’t have to ask that landlord, if I can put a gazebo in the backyard, if I want, or the, or the big built-in kitchen that everybody wants right now, which you’re not going to do. Right.
Tracy:
Outdoor, which you’re not going to do because you can’t take it with you. Right. You know, you’re not going to invest in improving the property very much versus if it’s your own. Right. I
Tego:
Think another one is good. Here is accomplishment. And I would add just pride in, you know, feeling good about your successes and having in being a homeowner. Right.
Tracy:
And, and pride in having a legacy for your family of ownership.
Tego:
Yeah. Comforts, you know, but you can enhance
Tracy:
It and make yourself as comfortable as you want.
Tracy:
Right. Do you want that orange wall? You can make it to your comfort. Right.
Tego:
I think this last one, it says community you think about what’s happened over the last year and the, the, the, the lack of, and need for social interaction. Right. And being part of a community, being part of a social network. And when you become ownership in a community, that’s what happened. Right.
Tracy:
You know, what’s interesting, kind of a side note on that Tigo is when you buy a new home in a new home neighborhood, you tend to get to know your neighbors really well, because everybody’s kind of moving in at the same time, because normally Dr. Horton Pulte Abrazo Twilight, they kind of build up a street. Right. And they kind of try to get out of people’s way so that they don’t just build a random house here or there over their new neighborhood. They try to kind of build out. So they get construction moved away from where everybody’s moving in. So a lot of times they’re finishing homes all within the same few weeks, right. Up the street. And so the neighbors or the people moving in, I’ll tend to get to know each other because when you move into an established neighborhood, they all know each other they’ve already been there 20 years. They don’t get together anymore. You know, you think about our neighborhood Tigo. When we first moved in, we were the first or second people in that neighborhood were both
Tracy:
Moved in like the same week. Right.
Tracy:
I always say we were first, but I think their moving truck might’ve been right in
Tracy:
Front of us, but outward yards, a hundred yards.
Tracy:
But when we moved in, I used to spend a lot of time. I had a community list on 4th of July, all the little kids in the neighborhood we’d get together. We decorate bikes with ribbons and flyers and everybody would get dressed up and they’d get,
Tego:
It was that one neighbor that shot that bottle rocket into our tree and almost cut, burned our tree in our front yard. Yeah. Well, that’s a whole different conversation, but that didn’t stop
Tracy:
It. But for several years, probably until I got too busy in real estate, honestly, I would organize neighborhood, get togethers. We would do holidays. We would have happy hours. We would get together with our neighbors. Now it’s been 19, 20 years. Right. Yeah. And honestly I probably don’t know everybody anymore in our 28 house neighborhood. Right. And we haven’t had a 4th of July parade. We used to get the Corollas, police and firetrucks to come to our little neighborhood and, and do those things. But I mean, you know, community’s huge, meaning is a big deal. And again, I
Tego:
Think people are yearning for that after, after COVID right. And, and just getting back out and we’ve all seen that. Right. And the restaurants and the shopping and, you know, people just want to be out, you know, we live down here in our offices down here off Alameda near the river. We’re [inaudible] open,
Tracy:
But khaki open-space, I have no idea. All I know is how brain pronounces it. And, but khaki sounds good. Yeah. So it’s, you know, Alameda
Tego:
And Rio Grande and there’s the parking lot there. Yeah. Oh my gosh. Every weekend that parking lot is not
Tracy:
Just, not just weekends anymore. And you know, for, for people that want to take the Boskey trail, right? Yeah. We take the, the Alameda bridge westbound every day. Right. And it’s amazing how so many people are still hanging out along the banks of the Rio Grande and enjoying the water with their dogs and having picnics and setting up shade structures. And to me, that’s one of the best things that’s come out of COVID.