In December of 2015, experts began making predictions for the 2016 real estate market. One of which, from this article on Realtor.com was “Already unaffordable rents will go up more than home prices.” Now that we’re halfway through 2016 – let’s take a moment to assess if this trend prediction was on-point, and what it means for your average buyer in South Florida.
The current average price for a home in Miami-Fort Lauderdale is $235,500, and the current median rent is $1,886. When you plug this in to a rent vs. buy calculator – you can find a great one here – buying becomes cheaper than renting, after initial costs are covered in less than two years. According to Zillow, this trend holds true nationally, as well.
A Good Investment
Now that you know the numbers, as well as the fact that home values are going up every year in South Florida, buying is clearly a good investment. If you’re not already looking, start. In the meantime, get yourself ready.
Prepare to Buy
If you don’t have money set aside, start aggressively saving for a down payment. Start talking to a mortgage broker or brokers – a real estate agent can point you in the right direction – to see how much home you can qualify for depending on your projected down payment and your credit score. If you uncover any credit issues, now is the time to work them out while you are saving. Get all of your ducks in a row.
Start the Process
When you’re ready to go with your down payment, cleaned up credit report and letter of approval for a mortgage, start working with a Realtor on your actual home search, narrowing down possible neighborhoods and locations based on your budget, wants and needs in a home purchase.
Real estate is a great investment. When you’re ready to buy, call our team!