Should I Rent Or Buy A Parkland Home?

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Should I Rent Or Buy A Parkland Home?

Parkland and South Florida Rental Costs Are About To Take Off

The Parkland Parrot Real Estate Team is often asked by our clients if it is better to rent or buy.  Our answer is that it depends on the individual situation.  There are certainly times when renting is a better option than owning.  If a person is being relocated to the area for a temporary job, then renting for the short-term is a much better option.  Or, if an individual is very unfamiliar with an area and wants to acclimated, then it is better to rent before you commit to purchasing in an unknown area.

But, in most cases, renting does not make sense over buying a home in today’s market.  Here is why:

  • Even though home prices are expected to soften in the coming months, buying is a better option as the cost of owning a home most likely will increase.  We wrote a great article that elaborates this point: The Cost of Waiting for Parkland Home Prices to Fall
  • Mortgage rates are at record lows.  But, most experts agree that mortgage rates will increase making now the best time to purchase a home.
  • According to a Trulia.com study, it is less expensive to own a home than renting one in 72% among the major cities in the United States.
  • The cost of renting a home is about to explode!

Real estate is based on supply and demand.  In today’s unsettling economic market, many homeowners are being forced out of their homes due to foreclosures.  Also, many on-the-fence buyers are scared to pull the trigger on a home purchase.  In the past year, the supply of rental properties has significantly decreased causing an increase in rental fees.  According to the Calculated Risk Blog, vacancy rates are back t0 2008 levels, which is not far from the 2006 rate which was around 5.7%.  As a result, as vacancy rates decrease, rents will certainly increase which will also eventually support housing prices in the neat future.   Please view the below chart to see the apartment vacancy rate in the United States:

rent-vs-buy-comparison

Bottom Line:  Is now the ideal time to rent?  Our Parkland Real Estate Team strongly believes that NOW is the best time to buy as prices are at record lows, and housing costs will increase!   NOW will also be the best time to lock in a 30-year fixed mortgage at historically record low interest rates.  As a result, you can set up your housing expenses for the next three decades.  On the other hand, rental prices will continue to increase for years to come making owning a home a better investment for now and into the future.

We know the numbers, we analyze the market, our clients make better decisions. If you are interested in buying a home in Parkland or South Florida and are looking for experienced local Realtors, please do not hesitate to contact the Squawk at 954-609-0591 or send us a message here.

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