To Rent or Not to Rent in South Florida. That is the Question.

With all this talk about this being the time to buy real estate in South Florida only holds true in certain circumstances.  Do not buy just because you believe you are achieving the American dream, because with it comes the American nightmare, i.e.; sky high taxes, insurance, and maintenance.  Couple that with the fact that you have to live in the house for at least five years to see a return and I think you have your answer. 

Just about everything for sale down here is either a short sale or foreclosure.  Therefore, you are always going to be competing against them for the next five years, minimum.  Throw in a trinkle of new construction and you are in for a long haul when it comes to selling.  Are you prepared to stay in your new home for five to ten years, pay the higher taxes and insurance, and finally, risk your maintenance going through the roof because your neighbors are deadbeats?  If your answer to that is no, rent. 

Right now a lot of landlords are gouging because they know this, so look around and don't go with the first rental you see.  Do your homework on the neighborhood's rental market.  And if you cannot afford it, by all means, don't rent it!  Getting evicted is as bad as a foreclosure on your record because the landlord can file a judgment against you, and that doesn't go away till you pay. 

You can and should do all of this with a qualified rental real estate agent.  Renting in South Florida is a strenuous ordeal for those moving in from out of the area because things are so different here in terms of the laws, leases, money down, etc.  I like to tell my clients that they are not in Kansas anymore.  Besides, our services here are free to the tenants, so take advantage of it.  I have been an agent and landlord in South Florida for 14 years now and have seen the best and worst.  If you're a landlord now is as good as it's going to get, so take advantage of it if  you're not going to sell.  But if you're a tenant be prepared is my best advice.  Have your credit  and move in money ready to go. 

This is not a difficult question.  You just may not like the answer.  Rent in South Florida for now and hold on tight.  It's going to be a bumpy ride.