According to information from Realtor.com, it’s now less expensive to buy than it is to rent in several cities. Per the study, in 15 of the 50 largest metros in the United States, owning a house is equivalent to or more low-cost than renting as long as mortgage rates stay stable. Nine other markets came within 5% of switching from selling to buying.
The median monthly cost of buying a median-priced home in the 50 biggest metros was just over $1,900, compared to $1,727 for rent. Cleveland, Chicago, Pittsburgh, Riverside, California, and yes, Miami are among the cities where buying is less expensive.
The following is the approach used by realtor.com: Purchasing and rent costs represent current values and do not account for the amount of time the property has been purchased, price and rent appreciation, or inflation. Purchase costs are estimated using realtor.com metro-level home listing price data and mortgage rate information for January of this year, and are dependent on buying with a 30-year fixed-rate, completely amortizing mortgage of 80% (20% down payment), and require taxes and insurance. Each rental unit evaluated by realtor.com ranged in size from two to four bedrooms, making them similar to a traditional home buy.
Even with the highly active Miami housing market, the Miami-Fort Lauderdale-West Palm Beach metro area seems to be a better deal, with a median house price of $400,000 and a monthly mortgage of $2,092. At $2,350 a month, renting is prohibitively costly. Snowbirds that rent in South Florida during the winter months can affect rental rates.
With buying being cheaper than renting, we are the hard money lenders in Miami you need for quick financing. Instead of waiting weeks or months and seeing deals fall through, we offer quick approval and flexible terms. Contact us for more information on Orlando hard money lending.