Purchasing Locks In Your Costs, Whereas Renting Does Not.
With mortgage rates hovering around 3% today, it is generally accepted that the debate of ‘rent vs. buy’ generally falls squarely into the ‘buy’ category. For example, the principal and interest payment on a $500,000 30-year fixed rate mortgage at an annual rate of 3% is $2,108.02 per month. It would be difficult to find a comparable rental home for that amount of money in today’s market. Understanding of course that buying also includes insurance, real estate taxes and other expenses not associated with renting, buying is still very compelling, especially when considering locking in a 30-year fixed rate mortgage at today’s historically low rates and the potential for value appreciation.
Owning a home also provides the peace of mind in knowing that you are in control of your housing, whether any improvements or additions you wish to make, or the number of years that you choose to remain in your location. And of course, there are other positive financial reasons to owning, such as personal income tax benefits, as well as not having annual rental cost increases.
We believe that, even though there are currently inventory challenges in South Florida, the opportunities to begin the path to ownership are plentiful.