There is no question now that for millennials in South Florida and Broward county, buying a home beats renting — but a shortage of affordable homes has left young locals and first-time home buyers trapped renting apartments they can barely afford.
According to a new study done by Trulia, buying is 44 percent cheaper in Broward.
Trulia assumed that buyers would put 10 percent down, a more realistic figure for millennials and first-time home buyers than the standard 20 percent down payment.
“The fact that buying is a better deal is particularly surprising because home prices in South Florida have been on a tear over the last three or four years,” said Ralph McLaughlin, Trulia’s chief economist. “But rents are going up quickly too.”
In Broward, the median price for single-family homes and condos was about $200,374 in September, compared to a median monthly rent of $1,750, the study found. When you do the math, renters in South Florida spend more per month than they would on a mortgage without the benefits of building equity in a home.
But finding a home to buy isn’t easy. “Even though it’s cheaper to buy than to rent, that doesn’t mean that [South Florida] is a cheap place to live,” McLaughlin said. Besides, there is a shortage on homes available on the market just now.
Putting together a down payment can be a challenge as well.
Across the region, real estate agents say that modestly priced homes in decent neighborhoods spark frenzied bidding wars, and investors who put down cash almost always beat out locals who need mortgages. Buyers complain that many homes they come close to purchasing end up failing the strict inspections required by first-time home buyer programs.
As the area gets build up, prices of homes are quickly going up once again. Inventory on homes for sale is shrinking. The biggest hurdle is to start the process and work with a realtor that can guide your steps towards "The american dream".
Here is a link to Trulia's rent vs buy calculator. It's very useful if you want to find out what is the best option for you. Thanks to Eleanor Fisher (Outreach Coordinator at Trulia for recommending this tool.
If you are tired of renting or have any questions about becoming a homeowner, or are in the market to sell or buy real estate, please don't hesitate to contact Renzo Lara of Castelli RE Services. We'll help you find a place that matches your budget and lifestyle!
We have tons of properties here in Fort Lauderdale.
Hope you enjoy!
As the area gets build up, prices of homes are quickly going up once again. Inventory on homes for sale is shrinking. The biggest hurdle is to start the process and work with a realtor that can guide your steps towards "The american dream".
Here is a link to Trulia's rent vs buy calculator. It's very useful if you want to find out what is the best option for you. Thanks to Eleanor Fisher (Outreach Coordinator at Trulia for recommending this tool.
If you are tired of renting or have any questions about becoming a homeowner, or are in the market to sell or buy real estate, please don't hesitate to contact Renzo Lara of Castelli RE Services. We'll help you find a place that matches your budget and lifestyle!
We have tons of properties here in Fort Lauderdale.
Hope you enjoy!
