Are you contemplating a relocation and uncertain about whether to rent or own a residence in Florida, FL?
Are you unsure which option would make better financial sense for you?
Do you have concerns about finding the ideal house or apartment to suit your preferences?
Are you uncertain about your financial capabilities in this regard?
This article will explore various ways to help you determine whether renting or owning a home in the Florida region is the appropriate choice for you.
How To Know If Renting Or Owning A Home Is Right for You in Florida
From the 1950s to the 1990s, the majority of families in America aspired to achieve home ownership as a prominent objective. Owning a house was considered the quintessential “American Dream,” and not owning one carried an accompanying social stigma.
But, that rule has changed in recent years. The convergence of the economic recession and the collapse of the housing market bubble has rendered renting an appealing alternative for a significant number of Americans, perhaps even for you.
Formerly, the decision to rent or own in Florida was based on whether one preferred a house or an apartment. However, nowadays, there are opportunities to acquire apartments/condominiums and lease homes, providing renters and prospective property owners with a range of options to choose from and live in the type of property that best suits their needs.
Renting is great for people who want flexibility. If you are beginning your professional journey and aspire for the flexibility to move frequently, then renting could be an excellent alternative for those who prefer to experiment with different areas within their city before establishing a permanent residence.
Owning a home ties you to one location for a good period of time. Choosing to abandon your mortgage could severely damage your credit, and opting to sell your home is a time-consuming and difficult undertaking that may result in a partial loss of your initial investment.
Contrary to common belief, in numerous scenarios, opting for renting instead of owning can prove to be more financially advantageous, particularly when the local real estate market is experiencing minimal annual growth. As tenants pay a predetermined amount each month, homeowners are faced with additional expenses, such as homeowners insurance, upkeep and repair costs, and community association fees, among others.
It’s not always best to rent, however. The American dream of homeownership endures, granting you the liberty to personalize and rearrange your abode to your liking, free from the apprehension of jeopardizing your deposit or offending your lessor. Such autonomy over your dwelling epitomizes true freedom.
Homeownership as an investment. Although the housing market in Florida, FL has recovered locally, it is worth noting that the current trend of home values is not following the pattern seen during the housing bubble’s build-up, which is actually a positive development. Nevertheless, owning a home can still provide the advantage of potential appreciation in the property’s value, as seen in the past where home values grew at an average annual rate of around 6.4% from 1968 to 2004, surpassing inflation as well as various stocks and other financial instruments.
As a homeowner with a fixed rate mortgage, you enjoy the benefit of inflation protection. To illustrate, let’s say your mortgage requires a monthly payment of $500 throughout the loan term. Nevertheless, the value of $500 can undergo substantial alterations during a period spanning 15, 20, or 30 years. Since individuals generally experience an increase in income over time, a fixed-rate mortgage can gradually consume a smaller proportion of your net earnings each month.
When making the decision of whether to buy or rent your next home, there are several critical factors to take into account. The key is to engage in the same process you are currently undertaking, which is learning how to determine if homeownership or renting is the appropriate choice for you.
Above all, it is crucial not to commit to any payments that you may not realistically be able to fulfill throughout the duration of the agreement. This applies regardless of whether it is a $600 monthly rent for twelve months or a $550 monthly mortgage for the following 15 years.
Have You Considered Renting To Own A Florida Home?
There is another “hybrid” option to just renting or buying a house.
If you would love to own your own house in our area… and…
- Just want to try a house out before you buy it
- You’re not able to get a home loan to purchase a house right now for various financial reasons
- You have some cash to put down on a home and can pay the rent and would rather work toward owning that house
… renting to own a local house may be right for you!
Check out the rent to own process here on this website and if you want to get on our list to see Local Florida FL Rent To Own Homes… head over here to see available rent to own homes here in Florida.
See our latest rent-to-own homes by going through the link below!