GAS PRICES ARE EXPECTED TO KEEP RISING! QUIT BURNING $$$ IN THE TANK AND LET THE HOUSING MARKET BE A POSITIVE INVESTMENT!

Why Gas Prices Are So High?

High gas prices are usually caused by high prices for crude oil, which accounts for 55% of the price of gasoline. Distribution and taxes influence the remaining 45% of gas prices. Usually, distribution and taxes are stable, so that the daily change in the price of gasoline directly reflects oil price fluctuations.


In February 2012, concerns about a potential military action by either Israel or even US against Iran caused high oil prices. Second, some oil refineries in the US were closing. Third, oil and gas prices tend to rise every spring, in anticipation of increased demand during the summer driving season. As a result, gas prices hit $3.50 a gallon by February 15.


LOOKING AT REAL ESTATE AS A POSITIVE INVESTMENT!


Oil prices are expected to continue rising so outside of selling or trying to trade in your vehicle for less than market value, especially our favorite gas guzzler vehicles, what can WE do?? Coincidentally, RENT prices are also rising so why not make the most of your hard earned money work for you and look into purchasing a home/property in the Anchorage area. Interest rates are LOW and housing market is coming into the "busy" season with spring approaching. Your primary residence, as well as an investment property (like a condo or crash pad for the work week), can have mortgage interest deducted from taxes and can be a positive investment. Not to mention we are very fortunate that our housing market in the Anchorage Bowl and surrounding areas have not taken a dive in property values. On the contrary, a vehicle is not a positive investment and depreciates quickly in value, with accelerated maintenance expenses, and to top it off (no pun intended!) the rising cost of fuel!!


Let’s say for example, your place of work is in Anchorage, and you are living in Wasilla. Your minimum monthly fuel cost may take up to $500 per month out of your monthly budget. While if you live in Anchorage, your monthly fuel cost would only take you up to over $100 per month. There is a huge savings and of course, you do not have to travel so long just to get to work. Gas prices may continue to rise up to as much as $5/gallon this summer. This may increase your gas expenses by 25% per month.  See table below for comparison.


Fuel Expenses at Current Prices

Summer Fuel Expenses at Forecasted $5/gallon

***If you want to reduce the impact of increasing gas prices and live closer to your work place, here is a resource to view the active Homes in Anchorage & Surrounding Area.  All or email JAMES TEAM REAL ESTATE for more information at 907-865-6594 or you may call me directly at 907-242-7653.***