Should you buy or rent a property in Miami Beach
Have you ever thought about moving to Miami? One of the most popular cities in Florida certainly has many things to offer. It has seven miles of beautiful beaches, more than twenty parks, endless shopping, dining, and nightlife options. In addition to this, Miami is a popular tourist place. Therefore, if your work is related to tourism, then Miami is a perfect place where you can move or expand your business to. However, if you plan to move to Miami, then you should think about your future home. It is not the same to buy or rent a property in Miami Beach. For this reason, read the article to find out if you should buy or rent a property in Miami Beach.
Before you decide if you should buy or rent a property in Miami Beach, learn more about this coastal city. Interestingly enough, the municipality is found on the natural and man-made barrier island that separates the Atlantic Ocean and Biscayne Bay. The commercial center of South Florida is made of Port Miami, downtown Miami, and Miami Beach. The population of Miami Beach is around 92,000, which makes this coastal city the 26th largest city in the state of Florida. The National Register of Historic Places listed Miami Beach’s Art Deco Historic District. Here you can find the largest collection of Art Deco architecture not just in the United States, but in the world. There is a large number of hotels, buildings, apartments, and other structures made between 1923 and 1943. Barbara Baer Capitman led the movement to preserve all the architectural heritage in the Art Deco District.
Buy or rent a property in Miami Beach – price breakdown
As mentioned, Miami Beach is a relatively large city with around 92,000 people living here. The median household income is around $47,216 a year. If you want to compare to the US average which is only $28,555, you can see the difference. In addition to this, the average home price is around $376,000 while the average rent is around $2086. Many specialists claim that is better to buy a home rather than rent it in Miami Beach. Specifically, it is 23 percent cheaper to buy a property than to rent it at the national level. However, the difference is even more pronounced in Miami Beach. It is 43 percent cheaper to buy a property than to rent it. To put it in numbers, you can rent a house for $5,000 per month and never own it or you can buy it and pay $2,700 in monthly mortgage payments.
Buying a property in Miami Beach – explained
Even though it is better to buy and own a property, buying a home is not completely risk-free. So, you might want to wait before you start searching for the moving companies Miami Beach. Many properties in Miami Beach are either purchased as rental vacation properties or investments. Apart from this, Latin American countries affect the market as well. When the political atmosphere becomes tense in any Latin American country, many foreigners start buying properties in Miami. This is very helpful to the local marker. However, it does not help other people since the competition increases. This leads to the price increase as well. Therefore, prices are always on the rise. The median price for a single-family went up 5.9 percent while condo prices increased jumped up 13.4 percent. Specialists expect the rise to continue even more in the following years.
The other costs of investing in Miami Beach Property
Unfortunately, there are even more costs to pay when you wish to buy a property in Miami. These do not include moving cost, costs of hiring movers in Fort Lauderdale, packing, transport. Here are all the things you will have to pay.
- Documentary Stamps and Documentary Stamps on the Mortgage
- Intangible Tax on the Mortgage
- Recording Fees
- Title Insurance
- Mortgage Payment that consists of the principal amount and the interest
- Insurance which is between $300 and $1,000 for most homeowners
- Maintenance costs which depend on the state of your property
- Taxes which are around 2% of assessed value
Taking all of this into account, see if you can prepare your budget. It would be wise to consult professionals about mortgages and interests. Make sure you can pay for all these costs.
Renting a property in Miami Beach
Now it is time to focus on renting a property in Miami Beach. First, here is a price breakdown for renting. The median monthly rent for a one-bedroom apartment is around $1,800. You should expect to pay around $2,500 for a two-bedroom apartment. This is quite expensive when you compare it to the other cities in the nation. Miami and Miami Beach ranked as the ninth one on the most expensive rental market list. However, sometimes it is more convenient to rent an apartment or a house than to buy it. For example, you are moving for a job or to attend a university. If you only plan to stay temporarily in Miami Beach, there is no need to buy a property. In addition to this, if you look hard enough, you can find apartments for a really good price.
What to do in the end?
Renting does seem like a “safe choice” since it is a financial burden in the long run. However, renting can be also seen as a “waste of money” since you are paying a large amount of money for a property that will never be yours. The answer depends on your situation. If you are planning to settle down in Miami Beach, then buying a property is definitely a better option. Of course, you need to be eligible for a mortgage. On the other hand, if you live in Miami Beach for a short period of time, then there is no need to buy a property. You can just rent it for a period that you will be living in Miami Beach.