Your ability to purchase residential real estate as a home or investment in the Miami area may depend largely on the current market, as well as personal factors. However, analyzing these is not necessarily a straightforward task. According to Forbes magazine, how the up and down patterns of Florida real estate may affect you includes considerations such as uneven growth rate, the increasing prices of homes and even how long you plan to own the property.
If you are planning to purchase residential property and lease it to renters, Miami-Dade County’s new growth indicates that it is likely to continue to attract people to fill the available apartments. Not only that, if a bust period follows the current trend of rising prices, as a landlord you may have an easier time meeting mortgage payments on your property, since demand for rentals is forecasted to remain high.
The strength of the rise in residential property prices may be skewed by investors rather than homebuyers, though. So, taking out a mortgage that represents a high percentage of the value of the property may make payments difficult as prices climb, and it may increase the rate of loan defaults and make future mortgages difficult to obtain. As a result, this may not be the ideal time to purchase a home as a short-term investment.
South Florida’s appeal to retirees and international investors may prevent the market from collapsing again, even as it drives up the apparent demand and the attempt to meet that with new construction. Although analyzing the predictions about the future of Miami real estate may assist buyers in making important decisions, the information provided is for educational purposes only, and should not be interpreted as legal advice.