Albuquerque Schools Represent an Investment in Home Equity

By Richard Barrington
Local Lender Columnist
Aug 1, 2008
At a time when many home owners are struggling with falling home values and rising interest rates on their home loans, a school tax bill might seem like an especially unwelcome sight. For Albuquerque residents though, school taxes could help increase home values, making home equity loans and cash out refinancing feasible.

Albuquerque Schools: Commitment to High Standards

The Albuquerque Public School system has made a commitment to high standards which is reflected in several clearly-articulated goals:

• All schools in the Albuquerque system meet or exceed Adequate Yearly Progress benchmarks.
• All students meet or exceed proficiency standards in reading and math.
• All students entering the ninth grate graduate within four years.
• All teachers, staff, students, and parents consider all schools and facilities to be safe and of high quality.
• All employees, students, and families report 100% satisfaction with instructional and administrative processes.
• All levels of the organization meet or exceed accreditation standards and proficiency measures.

What This Means for Cash-Out Refinancing and Home Equity

These educational goals are admirable, but what have they got to do with things like cash out refinancing and home equity? The answer is that school quality is a key factor in drawing home buyers to a community. The more attractive the school district is, the more demand there will be for housing in the area. In turn, housing demand is a necessary ingredient to support housing prices. Stable demand can help bolster prices throughout the area. This benefits people who intend to sell their homes and homeowners who hope to borrow against the value of their homes, either through a home equity loan or cash out refinancing.

When home prices across the country go into a slump, it is a reminder of how many things about the housing market are beyond an individual homeowner's or community's control. However, one thing they can control is setting a high standard for the quality of the school district. In the long run, this should be a positive for local property values.

Because of the relationship between school quality and property values, the high standards of the Albuquerque school system are likely to benefit more than today's children. They should also benefit area residents who might be in the market for home loans in the future.

Source:
Albuquerque Public Schools

About the Author
Richard Barrington is a freelance writer and novelist who previously spent over twenty years as an investment industry executive.