Moving to Floirda Renting vs Buying a Home
It's no secret that Floirda is a very popular place to move to.
One of the biggest questions people wonder should we rent or should we buy a home in Florida?
I can speak from my own experience, we moved to Florida in August 2018 and planned on Renting for a year to see how we liked Florida and the area we wanted to live in. We scheduled a trip in July to come down to Florida and look at rentals, we knew where we wanted to be since schooling was the # 1 factor for us, being that St Johns County is and has been the # public school system in Floirda for 9 years running that is where we wanted to be.
We arrived and began our rental search in the target areas with the best schools in St Johns County ( note: not all schools in the county are rated 9 or 10 out of 10) After finding 2 school districts that had 9+ ratings we quickly realized that rentals in these areas were $2,000. - $2,800 a month on average. This was not what we expected but it was reality.
We than started looking at homes to buy, resales and new contruction to compare the costs monthly. We quickly realized that we can buy a home and pay far less than renting in the target areas we had picked. We looked at the financials and used the lowest rental at $2K a month x 12 = $24K of wasted money on a rental. Then looked at a mortgage payment and find that we would be paying far less to own a home. If we stayed a year and hated it and even if the market tanked a little if we threw away $24k on rent or more we could always take a loss of $24K if we choose to sell ( the rent we would have paid at $2k a month) and still owned our own home rather than rent and if we liked it have invested in our own home rather than a landlord. On the upside if the market was stable or increased we would be even better off.
The real estate market in Florida is booming, house values are going up up up. In our case we love it here and stayed, our house value has incraesed about 15% since we bought.
Everyone has a different plan in life but if you are debating Renting vs Buying A House In Florida do some math. Here are some examples.
Let's assume a Rental in the area you are looking to move is $1800 a month
Let;s assume you can buy a home with a mortgage amount of $250K , with today's mortgage rates at or near historic lows here us what you might pay for a mortgage Principle and Interest:
As an example if the loan amount was 250K @ 2.25% mortgage interest rate on a 30 year mortgage the P& I payment would be $995.62 of course you may have mortgage insurance if you put less than 20% down and you have to add your property taxes and homeowners insurance but even adding these fees, it is pretty likely that you would still be hundreds of dollars less than renting to own a home.
I would be happy to run the numbers for you, no cost, no obligation then you can decide what makes financial sense for you.
We have programs that go up to 100% for qualified buyers - contact me for details.
Good luck with your move!
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