Question Of The Day: Is It Better To Rent Or Buy A House In Florida?
The real estate market is expected to continue to soar high in 2021. High demand and low mortgage rates are some of the key factors driving this growth. If you are looking for a house now, you might be wondering: Is it better to rent or buy a house in Florida?
Renting A Home
One of the major benefits of being a renter aka a tenant is not having to shoulder maintenance and repair costs as well as property taxes. In general, fiscal responsibility is not as heavy compared to owning a property. The monthly fee is fixed, and even if the rate goes up, you are given advanced notice so you can prepare for it.
When you buy a home, you must have at least 20% of the property value ready as a down payment, on top of the approved mortgage. With rental homes, you only need a security deposit, which is usually equal to one month’s rent. Many homeowners also require an advance.
As a tenant, you get to enjoy the amenities that come with your rental property. If you are renting a seaside luxury home, the rent comes with all the perks of living by the beach. Renting also allows you to live in areas where buying is not an option. This can apply to people whose jobs require them to live in big cities or near business districts where the cost of buying a home can be prohibitive.
Renting is ideal if you want to be more flexible. It is easier to pack up and move if your situation changes or if you want to downsize.
Buying A House
Buying a home is about making an enduring investment. If you are ready to settle down and raise a family, owning makes more financial sense in the long run. The initial costs are bigger but over time, you are building equity. Homeowners in today’s market understand this value.
While property taxes may change, the monthly payments are fixed if you are on a fixed-rate mortgage. You are not at the mercy of landlords or volatile market conditions.
Buying your own home is also about stability and peace of mind. After the hard work, you gain lifelong financial security. It allows you to establish your roots, which is especially important if you are raising children or starting a family.
Another advantage of being a homeowner is having the luxury of choice. You can choose the neighborhood you want to live in. You can customize your home with amenities that suit your lifestyle and passions. When you are a tenant, these luxuries are considered a premium and you pay more for access.
Owning residential property in Florida means you have an opportunity to benefit from the Sunshine State’s position as one of the country’s (and the world’s) most sought-after destinations for tourism and entertainment. Over time, you may decide to expand your real estate portfolio and become a rental property owner. And Florida is one of the most profitable places to become one.
To Buy Or Not To Buy?
There is no one or simple answer to this question. At the end of the day, it is a personal choice influenced by many factors like financial status, work, and family situation, and even the housing market.
If you’d like professional and expert advice on what it takes to be a homeowner in Central Florida, contact The Corcoran Connection. Jeanine and her team will be more than happy to answer your questions and help you make an informed decision.