Florida: Buy or Rent?
The decision between buying or renting can be tricky, especially with the real estate market currently. Some real estate economists recommend renting, due to home ownership being expensive right now.
According to a new report released by Florida Atlantic University’s College of Business, buyers in Jacksonville are paying 23% more money that they should be for homes. Homes in Tampa are overpriced by 32%, Orlando by 21% and Miami homes are 16.9% overvalued.
Real estate economist and associate dean at Florida Atlantic University Ken H. Johnson points out, the investment market is stronger and more stable than the housing market, which is why he’s urging Floridians, to rent instead of buy.
“Individuals should consider renting a similar type property, and then reinvesting the money they would have spent on a down payment, property taxes, maintenance insurance, etc., and take that money and invest it, and there won’t be that much of a difference, that’s a better way to go right now,” Johnson said.
Johnson said the cost of renting a house in Florida has spiked as well, but not as much as the price of homes, which in many circumstances are selling for more than they appraise. Johnson says the higher price you pay today, the tougher it will be to get a return on your investment.
Johnson’s advice could save buyers and renters thousands of dollars!
Thank you Tarik Minor, Anchor and I-TEAM Reporter for News4Jax.