Buying More Cost-Effective Than Renting
A study recently published by RealtyTrac reveals that buying more cost-effective than renting a home in Miami-Dade County, cheaper than renting by about 11 percent in fact. When considering the affordability of buying versus renting a typical three-bedroom home given the median income of the area, RealtyTrac discovered that rent payment would consume about 45 percent of a person’s paycheck, while home payments would cost just 33 percent. Most people assume that renting is the more cost effective choice, however by buying a home you are not only spending less on monthly payments, but you’re also investing in your financial future. That home will be an asset that can pay off big time in the future, whereas a rental will not provide that resale opportunity.
This trend can be seen nationally as well, with 351 out of the 461 counties studied reflecting a similar pattern. The economists who conducted this survey believe that the reason more people are continuing to rent as opposed to buy is slowing wage growth and increasing housing costs. People have less money coming in, and the slight increase in the cost of property discourages them from purchasing a home so they continue to rent despite it actually being more expensive. Putting money down on a home seems like a scary financial commitment to most Americans, however in the long run it ends up costing less. If you have been considering buying a home in the Miami-Dade area, now is the time to do it, as prices have been falling for the past few months. Contact a RE/MAX agent today and they will be happy to help you with all your real estate needs for Miami Properties, including all the eclectic neighborhoods and areas that are in and around Miami-Dade County!