IS BUYING A HOME IN ALASKA LESS EXPENSIVE THAN RENTING?

Is buying a home in Alaska less expensive than renting?  Buying Alaska Real Estate can often be approximately 50% cheaper than renting when the added advantages of appreciation and income tax savings are factored in.  If you wish to find out what's best for you, feel free to contact us on our website at Alaska Home Sellers.  You can also look at Mat-Su homes for sale here to see what your money will buy in the Wasilla Real Estate market.

A couple of months ago we blogged about the concept of the Boomerang Buyers that are coming into the Alaska Real Estate market, and how I feel they are going to further drive inventories lower and therefore resulting in higher prices in the months to come.  And when combined with our blog on Interest Rates and what is happening with the Anchorage Housing Shortage you can begin to gain some insight as to how these pieces of the Alaska Real Estate puzzle all start to fit together.   

According to Trulia's Winter 2014 "Rent vs Buy Report", it is 38% less expensive to buy than rent in 100 of the nation's largest metro areas.  Here is a link to the full story Trulia's Rent vs Buy Report Winter 2014.
  
There is even a very cool calculator on there that allows you to input your specific area and to use the sliding scales to find out more for your unique situation.  The link to the calculator can be found here Rent vs Buy Calculator.   As the article points out, the financial advantage to buying vs renting will lessen with an increase in home prices when also combined with higher interest rates.  We are already seeing an increase in both home prices and interest rates for home buyers in Alaska.  There is never a "one size fits all" answer to questions like this and it is only after counselling sessions with a competent real estate professional and an accountant that the answer will become more clear for your particular situation.  As Residential Finance Consultants, we employ even more empowering calculators to design a customized analysis tailored specifically for you.  

If you are a current homeowner and are contemplating a move you can visit our website and fill out this Short Form to obtain a quick estimate on your Alaska Home's Value.  We can prepare an analysis for you illustrating what the financial aspects of making a move now look like compared to waiting.

We can also be reached at (907)352-1828 to privately discuss your Alaska Real Estate goals.

Greg Shepard
Associate Broker GRI, SFR, RFC
Jack White Real Estate Mat-Su