For renters, currently in the market looking for their next home. Might of already seen the difference between finding a rental property in South FL compared to the market we are currently in. Realtor.com tracks prices across the country and recently released data showing the Miami-Fort Lauderdale-West Palm Beach market had the largest increase in the U.S. The study showed median rent in South Florida was just under $3,000 per month in March. That’s a 57.2% jump from the previous year and by far the largest percentage increase in the nation. Being that the wages have not increased, a portion of renters are struggling to keep up with their monthly cost of living.
To flip the coin! this is amazing news for an investor/landlord who has the same fixed mortgage rate or better yet, has already paid their property free and clear. Producing better cash flow for the same property. Not required to do anything else to the property like upgrades or renovations in order to do so. Yeah, you can make an argument that an investors expenses, such as property tax and insurance, may increase over time, but they’re unlikely to increase at a rate anywhere near what rents will increase. Overall, they’ll see that rents will continue to pull farther and farther away from their fixed-rate mortgage expense, if any.
As someone who chooses to rent, having the finances and credit score to purchase a property to do so. throwing such a large amount of money down into a property when a lot of the interest rates that we’re seeing are about as costly if not more including the cost of insurance, taxes and maintaining a property at the end of the year. Allowing me to have more capital to reinvest my money for a quicker return, rather than a home I’ll continue to put money into for years to come hoping I make a return on my investment when it comes time to sell. It’s all about perspective. You have the power on both sides of the coin as long as your educated on both sides and have a well thought out reasoning behind your choice.