Anyone who has, or who will, for that matter, aspire to settle in Florida, is bound to stumble upon this dilemma: renting vs buying a home in Florida. Now, we don’t want to burst your bubble, but the answer to this question will not be simple, or one-sided. Ultimately, the decision will up to you. However, before you make it, and call movers North Miami Beach Florida to help with relocation, we recommend that you read the following few lines, as they will assist with making the choice that best suits your needs.
Renting vs buying a home in Florida – the essentials
One might feel confused as to why the answer is not a simple one or the other. Let us further explain. Namely, deciding whether renting vs buying a home in Florida is the right choice for you essentially comes down to a few factors. You need to be mindful of:
- the current market conditions
- your financial standing
- your life situation
The thing is, every individual has a different vision and real estate needs that would fit their lifestyle and family. When you look at it now, the real estate market in Florida is a hot seller’s market. This means more competition amongst buyers, which further leads to higher housing prices. Such a situation is going to affect not only the price of your house but also your decision to go for an apartment or townhome.
The median price as a factor for renting vs buying a home in Florida
This is as financial factor of this decision as it can get. Florida home values have gone up 6.3% over the past year, and certain predictions state that they will continue to rise up to 3.6% within the next year. The median home value in Florida is $225,200., while the median price of homes currently listed in Florida is $295,000, with the median price of homes that are sold is $227,800.
When it comes to the median rent price, it is $1,850. Looking from a purely financial perspective, it would be good to buy a house and eventually sell it. Still, you are going to need some serious negotiating skills in order to ensure you are paying a fair price on the house. As is seen from the previously stated, houses are rather fairly priced right now, and rent is not considered as incredibly inflated. Be that as it may, we suggest that you delve into some further research, and find out what option best suits your situation.
A word about renting
People who are not looking to be tied down to a property almost unanimously favor the option of renting. This is also a better choice for people who currently do not have the financial assets to buy a home. What you ought to take from this is the following: planning to stay in the area for a few months or years makes the decision of renting a place much more sensible.
In addition, not everyone is willing to buy a house simply because of the number of expensive upfront costs that almost unavoidably come with it. When buying a home, you need to make sure you can afford to pay closing costs, a down payment, and any real estate commission fees.
Renting is great if you don’t want to be responsible for as many costs in the beginning. In the majority of cases, your landlord or property management will solely require a security deposit and first months rent. In case you are moving in with a pet, you might have to pay a special deposit for your furry friend, but that usually does not exceed a few hundred dollars.
What’s also a big plus about renting is that you don’t have to bother with paying for repairs or upgrades. If something breaks, you would call the landlord and report the problem. It’s their responsibility to find someone who will come and fix it.
However superb the previous part was, the downside of renting is that you have to deal with what you have. This means that if the carpet is old, and the paint on the walls is chipping, you are not the one who makes the decision of fixing it. You are at the mercy of the existing conditions of the residence, as well as the mercy of the landlord when you need something replaced. Depending on the landlord you got stuck with, it can sometimes take days for them to have someone come out to make a repair.
Narrowing this situation down to your case, you need to think of the place you are moving into. As your Miami Beach Movers can attest, Florida is prone to natural disasters. This can relieve you of the responsibility of paying for often damages from a storm. However, if a storm causes minor damages, it can take weeks or even months for the repair to end.
Some more about buying
As previously briefly mentioned, the housing market in Florida is booming, and not showing any signs of stopping. Further meaning that buying a house in Florida can prove to be a profitable investment. Housing prices are not too high, and selling is rather affordable, given the average income in Florida.
One of the biggest reasons people choose to buy a home is having control of what you choose to do with your property. You get to make repairs and improvements on your own accord, not having to ask any property management or landlord.
An additional and a rather important benefit of buying is that the monthly payments will be paid off one day. In Florida, the average rent payment on a monthly basis is $1,850. When you scale it to a year, you will pay over $22,000 without gaining anything in the end. Some consider this not to be a worthy investment if you can call it that since nothing is coming back.
Owning a house comes with a lot of responsibility. Amongst other things, you have to pay for your own repairs and upgrades and are in ch9-+*arge of paying property taxes and homeowners insurance. Buying a home in Florida means that you need to be aware of the possibility of paying for a decent homeowners insurance bundle. Once you factor in susceptibility to flooding, tropical storms, and hurricanes, you can end up paying more every year for good coverage.
Ultimately, when thinking about renting vs buying a home in Florida, you can see that there is a lot to take in. Make sure that you take ample time to make the decision that best suits your needs, possibilities, and desires.