Rent or buy? This is a question that millions of people face when it comes to deciding where — and how — they will live. Many more people will be facing this question in the coming months as graduation season gets into full swing and young people everywhere begin their professional, ‘adult’ lives. The question of which option is better between renting and buying residential property has proponents on both sides, and there are usually a variety of factors to consider when it ultimately comes down to making a decision.
When it comes to buying property, one of the biggest perceived drawbacks is what is known as closing costs. These costs can include a few different types of fees and charges, and sometimes the total can be at least a couple thousand dollars. But, for those individuals and families interested in South Florida property, a recent article shed some light on some data that may put the fears about closing costs to rest.
According to the article, buying residential real estate in South Florida will lead to one of the shortest ‘break-even’ points in America. The data indicated that it only takes two years for homeowners in the local area to recoup the amount they paid in closing costs. Experts suggest at that point it becomes cheaper to own a home than it does to rent. The real reason: property values in South Florida are going up and up, with no definable end in sight.
Although the increased pace of residential development in South Florida may impact property values sooner rather than later, at the present time homes in the local area are a hot commodity. And while some people may enjoy the flexibility that renting presents over owning, renters in South Florida may want to think about the positive aspects of home ownership.
Source: Sun Sentinel, Zillow: South Florida homebuyers break even in 2 years, Paul Owers, May 16, 2013