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Rents On The Rise In South Florida: Should I Rent Or Buy A Home?

An Age Old Question: Should You Rent Or Buy?
Rents On The Rise In South Florida

Rents on the rise in South Florida cities are beginning to add up. The economy has been steadily improving over the past few years and home prices are on the rise. With the sudden spike in home prices across South West, Florida potential homeowners are running from ownership and into lease agreements. In recent years this sudden switch has had an adverse effect on rents causing them to rise absurdly.

The situation always seems to spark conversations, which leads to a common consumer dilemma: Should you be renting or is it time to purchase a home?

RENTCafe’s February 2018 Apartment Market Report shows renters in 10 cities across Broward, Miami-Dade, and Palm Beach counties saw a year-over-year increase in average rent among the 250 cities included in the study. In a separate report from RENTCafe, Florida is listed as one of the least renter friendly states in the country. Data was thoroughly collected from laws related to renting, including rent increase notices, eviction policies and a landlord’s access to properties.

Florida is currently ranked 40th in the country for renter-friendliness. Among the worst renter laws are a three-day termination notice for nonpayment of rent, a seven-day termination notice for lease violations, and no existing statutes regarding maximum security deposit or for rent increases for month-to-month renters.

Based on factual data it is clear that renting is not the ideal choice for residents and new residents to the State Of Florida. However, let’s take a thorough look at the pros/cons of both sides of the argument.

 

Owning:

Pros

  • No Increases In Rent
  • Make your own decisions and have control to do whatever you want inside or outside your home. Create the living space that makes you feel great, it is your home.
  • Homes appreciate in value over time and so does your equity which turns in to major savings. Every month the amount you owe goes down and the equity goes up. Instead of paying rent for the rest of your life you could pay rent for the next 10,20,30 years and own an asset.
  • Payless Federal Income Tax when you depreciate the home and receive deductions on property tax as well as mortgage interest.
  • In current times, mortgage payments are often less expensive than rents.

 

Cons

  • Less mobility to move quickly (although you could always rent it out)
  • Repairs and maintenance are your responsibility
  • Legal Obligation to pay the mortgage

Renting:

Pros

  • No long-term commitment, ability to move freely
  • Maintenance/Repairs are covered by the owner
  • Some areas may be more affordable to rent
  • No mortgage responsibility and no risk of credit or financial ruin if unable to pay rent
  • If the market turns down you are not gaining or losing any value on the home

 

Cons

  • No control over the property
  • No control over the rising rental costs
  • Owners lay down the rules and you must abide
  • Lack of stability (Owners may sell and not renew the lease)
  • No depreciation or deductions to pay less federal income tax
  • No long-term equity or ability to own an appreciating asset

 

Bottomline is rents have increased substantially to correspond with the increase of housing values, the best viable option based on the facts would be to pay the same amount of money for ownership of an asset. With that said, seek out professional advice before making a decision and do your own research to find the best option that fits your area.

For those who cannot qualify for a mortgage but are tired of being burned by absurd rents, we have the solution for you. Contact DPF Property Solutions LLC to get in a home with no banks required today!

 

 

 

 

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