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Miami Condo Investments. Weighing Your Options between Buying and Renting in Miami

Written by Posted On Friday, 12 February 2016 12:07


If you come from Atlantic Ocean’s long island, that is located to the east of downtown Miami, then you probably know that there’s a lot that the real estate market has to offer there. With its plenty white sandy beaches, the amazing nightlife experience that never ends and the well spoken Miami, the place is an irresistible one to visit, settle down and live. However, one of the most important questions you can ask yourself is whether to buy or rent a home there, or is there a good tome to look for Miami condo investments. Well, here are a few considerations worth making before settling to a decision about Miami condo investments and Sunny isles Beach real estate.


The Pros of Renting


Without describing it much, renting home involves leasing or living in property that is not yours for a defined time period at a particular agreed rate paid monthly or annually, whichever is on your lease agreement. There are a number of advantages in renting a home over buying, which include the following as much as Miami condo investments and other real homes for sale in the area is concerned.


  • Renting Is more Flexible: – Unlike buying a home where you are more likely to settle in the place you buy property, renting allows more flexibility in terms of exploring an area well before committing yourself to settlement. During your lease period, you can research Miami Beach as an area, the Miami condo investments available, as well as the rest of the real estate market better especially Sunny isles Beach real estate and discover some things you didn’t know about the place, which is a good thing as compared to buying property in an area you don’t know well, especially if you have to go for a mortgage loan. Also, in the where your career requires you to move to a different location, you can do that without much strain, unlike in buying a home, where you either have to go back to the hectic process of trying to sell your home if necessary, or look for other accommodation which includes renting as you will be returning home on a periodic basis perhaps.

  • Income Stability and Creditworthiness: In this age and day, you can actually build a line of credit or repair a bad one through your rent payments. This is mostly done through ensuring timely rental payments, which upon building a good history can have a positive impact on your creditworthiness case you need a mortgage in future. Renting can also be a safer alternative when you are uncertain of your income stability, and can be a precautionary measure for avoiding bad credit in case your income decreases, while the opposite is also true in the case of an increase, where you can qualify for better mortgage deals.

  • Recurrent Home Expenditure: In renting also, you don’t have to worry about property maintenance expenses, since your landlord or apartment manager is always on the other end of the telephone at your service, especially if your rent payments are made in time. In some cases in Miami condo investments, the landlord may also take care of utilities such as water and garbage collection, while yours will be primarily taking care of the rent.



Sunny Isles Beach Real Estate


The Cons of Renting


The major disadvantages of renting however include the fact that you have limited freedom as your landlord might decide to increase your rent at their own convenience, if not evict you for petty reasons such as minor disagreements. The freedom of making home improvement decisions is also limited in renting, and most importantly, renting is a bit on the downside when it comes to homeowner’s equity for you.


The Pros of Buying


  • Homeowner’s Equity: One of the major benefits of buying a home from and to have Miami condo investments is that you increase your equity. As a matter of fact, you can use your mortgage as security for acquiring a second loan (refinance) if your credit history is in good shape. In this case, your home becomes your equity. All in all, every payment you make towards repaying your mortgage is a plus in increasing the degree of ownership of the property regardless of the risk.

  • Taxation Benefits: Homeowners are also entitled to a number of tax benefits in terms of deductions such as interests on mortgage and property taxation. They also get to benefit from tax relief on profits gained from selling the property.

  • Freedom of Control and Property Development Decisions: Unlike in renting, being a homeowner allows you maximum freedom of control. Most buyers of Miami condo investments get to enjoy the freedom of performing their preferred home improvement projects such as painting, remodeling, and décor, which serve to increase the property resale value.  One of the most desirable area in Miami is Sunny isles Beach real estate market.


The Cons of Buying


The downsides of buying include the high risk of losing property in the case of inability to pay or consistently service your mortgage. Also, buying means it will be your own responsibility to take care of all recurrent, maintenance and home improvement expenses as well as paying the utility bills. In buying a home, you also stand a risk going into bad credit if your source of income gets compromised along the way as you service your mortgage.


Which One Is Better Between Buying And Renting Miami Condo Investments?


The debate can be a lengthy one, but apart from the pointers above, there are a few additional factors that can determine this on a case by case basis. These include the specific location in Miami and Sunny Isles Beach real estate, the particular housing market at that time, as well as the amount of time in question. Depending on these factors, it’s imperative to use online buy vs. rent calculator to determine what’s best in your individual case. Regardless of the opportunity cost and recurrent expenses involved in buying however, it always feels good to own a crucial asset, especially if it’s one of the Miami condo investments and you have a solid income base for your mortgage. So should you buy or rent a home? For more information contact Miami realtor.


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