In the last 20 years, the United States experiences the highest increase in its mortgage interest rates. This panorama, together with the great competitiveness of the real estate market due to the current low inventory, makes buying loans even more expensive.
According to data from Freddie Mac, the average rate for a 30-year mortgage is now above 7%. But, the truth is that a year ago that rate was 5.13%.
However, buying is still the most viable option over renting, and this, for several reasons. This is explained by Carlos Javier Linares, real estate expert and engineer.
However, although rental demand remains high in Miami, there is a notable slowdown. Likewise, Linares points out that the main current disadvantage of renting a house is the exorbitant price. Furthermore, he clarifies that income does not generate capitalization, because the owner is the one who capitalizes.
In fact, an average household needs income over $112,000.00 USD per year to pay rent in South Florida. This was confirmed by a joint study of several North American universities.
Therefore, this means that buying remains the most reasonable option, regardless of the high rates. Likewise, Carlos Javier Linares states that it is “nonsense to dedicate more than 30% of your salary to rent.”
What should be taken into account before buying a house?
In this sense, the expert proposes three basic questions that will help the interested person reflect on the topic.
The first: is it the place where I want to live for the next few years? The second: am I in a position to get a loan approved? This includes credit score, income, down payment savings, and closing costs.
Finally, the third question that the person should ask themselves is: am I mentally prepared to make such a commitment?
Once you have analyzed your current conditions, the interested party will be able to consider the ideal time to purchase your home.
2023-10-15 23:48:26
#Buy #rent #house #Florida