Renting vs buying your home in Miami

In Miami the ideal most people aim for is buying a home. Owning a home tends to be an indicator of financial stability. Also, Miami is a very popular city with plenty to offer. Investors from all over the world are taking notice of Miami real estate. However, there is no shame in renting in Miami if that is where you are at. Often it is the most intelligent choice. It is just a good idea to start saving up your money little by little if what you want is to buy a home.

Something to be taken into account is that rent to own schemes are often scams. You really are better off renting, saving your money, building your credit and buying your home, when you are ready and if that is what you want.

Financial Situation

Renting or buying will depend not just on your financial situation, but also on where you are at in life. Maybe you move a lot because of your job or you haven’t found a place where you want to settle down and start a family. People who enjoy traveling can intentionally decide to rent so they can live in an apartment for a few months and leave. Some people really prefer to rent because they don′t want to risk not being able to pay off a mortgage, which can be stressful. You should always be setting aside part of your salary for savings, but only consider buying once you have a steady income.

Landlords

One of the best things about renting is that someone else pays for your repairs and you have someone to complain to when things go wrong. There are, however, expenses which can add up like a security deposit. Also, you may have to pay first and last month′s rent. The reality is you′ll probably be helping to pay-off someone else′s mortgage. You also have to wait for your landlord to get things fixed, which will depend on his availability. If you′re lucky, your landlord will be cooperative and understanding. For now, rents in South Florida tend to be rising. A small two bedroom apartment can be on average $1800 a month, which is a lot of money when you take into account other expenses. For a two-income family the rent will be more accessible, of course.

Financial Incentives

When you own a home, you can decorate it as you please. It is also your responsibility to pay for everything. Also, if the market value of your home increases, you will get a return on your investment. 5 years is a good amount of time to stay in a home. There is also a financial incentive to buy a home. There is a federal tax deduction for mortgage interest and Florida has a Homestead Tax exemption. With these two things combined, the taxable value of a home is reduced by $50,000. Also property tax is limited to a 3 percent annual increase. What you do need to do is hire a real estate agent to guide you. Some banks offer benefits to first-time buyers.

There is usually a lot of demand for cheaper homes, which is why people start out renting. There are bidding wars and the added competition of international investors. You often need a 20% down payment for your loan to be approved. Anything under $250,000 is hard to find, at the moment. If you have the money, property valued over $350,000 will be easier to find.

For more information, you can call Property ACES at (305) 985-2237 and get started with the next stage of your life.