Welcome to Southwest Florida Real Estate

SW Florida Rental Home Question: Buy Now or Wait? For an increasing number of SW Florida residents, what used to be a slam dunk assumption—that owning your home is preferable to opting for a SW Florida rental home—is no longer so SW Florida Rental Home Question: Buy Now or Wait? Naples, Ft. Myers, Cape Coralself-evident. The powerful reasons for owning are still there: ownership still means that you are building equity over time; it still means you are free from a landlord’s control; and it still means you have the psychological benefits of being the possessor of the place where you live, and the standing in the community that accrues to the permanence that implies.
Those are powerful inducements to forego a rental home in favor of ownership, for sure—yet according to the numbers, the number of Americans who own their homes has been declining since the advent of the housing crisis (at the moment, SW Florida Rental Home Question: Buy Now or Wait? Naples, Ft. Myers, Cape Coralfewer than 2/3 of households now own their homes).
You might assume that the reasons for the increase in popularity for rental homes are simply financial, and to some extent, that’s the case. The economy, while improving, is doing so painfully slowly, wages are not rising as has been the norm in prior recoveries, and mortgage loans, while still at attractively low-interest rates, can still be difficult for some SW Florida borrowers to obtain.
Yet those dollars-and-cents arguments don’t paint the whole picture. Some of the reason why rental homes in SW Florida are being chosen are due to changes in American lifestyles. Forbes contributor Beth Braverman offered some insights in SW Florida Rental Home Question: Buy Now or Wait? Naples, Ft. Myers, Cape Corallast week’s article entitled “When Renting is More Expensive, But It’s Still the Right Move.”
Her first reason is not a new one: rental homes offer more flexibility. What is new is how Americans—particularly the group we call Millennials—increasingly value that freedom. Some of that has to do with the difficult labor market—and the premium breadwinners are placing on being able to ‘go where the work is.’
Next reason had to do with the relative illiquidity of the asset value a home represents. This looks like the first cousin to Reason #1: for someone who needs to move for professional reasons, being able to just pick up and move from a SW Florida rental home can de-complicate the situation. For those who are reasonably sure they will be in town for long enough to offset the costs of acquiring and selling a home, the financial benefits may outweigh this one.SW Florida Rental Home Question: Buy Now or Wait? Naples, Ft. Myers, Cape Coral
Last reason given was, “You’re not financially ready”—which is certainly the most longstanding one of all. Even if a current rental home occupant qualifies for one of the new programs (some can make the down payment as minute as 3%), it’s still possible that the ‘all in’ costs will strain resources. You have to agree with Braverman that in those circumstances, it’s probably best to build up savings, even if it means remaining in a rental home for an extra year or two.
SW Florida Rental Home Question: Buy Now or Wait? All in all, any increase in the popularity of SW Florida rental homes is good news for area investors who are (or soon will be) landlords. It’s also a great reason to give me a call this summer!

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s