Buying property instead of renting in South Florida is a big step forward for most young families and touring fixer-uppers to million dollar dream homes in neighborhoods such as Palmetto Bay, Pinecrest or South Miami can be a thrilling experience.
But as exciting as the experience is, it can also be daunting and overwhelming because of one major factor – money. Before you get in over your head, you need to need to do some homework and really put yourself to the test by asking, “Can I afford this house?”
The first thing I tell prospective homebuyers is that you should not be buying a house because of market conditions. The markets will fluctuate because that is what they do. Prices will go up and sometimes they come down, but you can’t base your purchasing decision around real estate cycles and trying to time your investment just right. That’s because your decision to buy a home should always be based on your financial well-being and not the short-term fluctuations in the real estate market.
If you’re planning to stay in the home for a while, the short-range variations of the home’s value will not make a significant difference in your investment over the long run. Plus, your decision to purchase a home should be based on your own timing, and if the time is right, then don’t wait.
Just remember that most lenders require a 20 percent down payment, before you will ever receive a mortgage. It’s still possible to secure a loan without the 20 percent down, but you’ll have to pay private mortgage insurance to make up the difference. In addition to your mortgage, you also need to factor in insurance, taxes, maintenance and monthly bills. Potential new homeowners need to do the math before they get in over their heads to understand whether or not there is space in their budget for this kind of investment.
If your budget is too tight, now might not be the right time for you to purchase a home. But the good news is there is a home for everyone out there and for all kinds of budgets. That’s why it’s important to have an experienced and truthful real estate professional by your side to help you navigate the process.
If you’re considering selling or purchasing a home across South Florida, please visit Roger Snyder Homes or call us at 305-987-2859 for more information.