Should you buy or rent in Miami?

To buy, or not to buy and rent instead, that is the question. For many of you who are planning on moving to Miami in the near future, or even those of you who already reside here, you might often ponder this quandary and find yourself groping for answers in the darkness. Well, we got some good news for you: a recent housing study, conducted by Trulia, has found an answer to this troubling question. The verdict? Buying a house in South Florida is definitely cheaper than renting.

To solve this puzzle, the average costs related to both buying and renting were calculated. In Miami-Dade, the median price for single-family homes and condos was roughly $241,000 in September, versus the $1,955 median monthly rent (In Broward, the numbers were $200,374 compared to $1,750). As far as down payments went, the study assumed that buyers would put 10 percent as a down payment.

After they “mathed” things up, it was found that buying is 43 percent cheaper than renting a home in Miami Dade County, and 44 percent cheaper in Broward. This is because renters in the southern end of the Sunshine State spend more per month on renting than they would on a mortgage without the benefits of building equity in a home.

Although it is better to buy a house or condo, this is easier said than done. There is always much competition for the good deals on the market – many investors have been flocking to Miami to invest in condominiums and houses in the recent years, as discussed in a previous blog post. To make matters harder, the amount of houses and condos on the market for sale number a lot fewer than those for available for rent. In the coming years, Miami’s apartment pool will increase by 3,200 units, 1,000 of which are coming in 2016.

Despite buying being cheaper than renting, in the end it is ultimately up to you. Are you looking to invest, settle down, or own a getaway home? Or are you simply looking for short-term housing? Regardless of your answers to these questions, the Brickell.com team is always available to help you in your apartment search and is only one click or one call away (786-306-4287).

 

Based on: http://www.miamiherald.com/news/business/real-estate-news/article40508565.html