Rentals
Remember the rent-to-own ads? Popular during the hyper-interest-rate days of the 1970's. The concept, a way for people to nudge their way into home ownership. Then came low interest rates and strong employment, and the concept went the way of disco. Owning a home became too easy for anyone to even consider leasing.
Now, affordability is an issue again, thanks to escalating housing prices, insurance costs and property taxes. Furthermore, an expected tightening in the lending market may make the creative mortgages of the recent past harder to get.
The upshot: Renting is making a comeback. Home rental rates in Miami have been increasing since last year. Too see why, simply glance at the real estate listings. A typical three-bedroom home in say, Coral Gables, cost about $700,000, bringing monthly mortgage, property tax and insurance payments (assuming a conventional loan and down payment) to upwards of $5,000 a month. Similar homes in the area can be rented for less than $ 2,500.
The increased interest in rentals is coming just as the supply of rental units is on the rise. On the apartment front, rental units had become hard to find in recent years as rental communities converted to condos. Now the trend is reversing.
More than 4,200 units that had converted to condo reverted back to apartments in 2006. In addition, many investors who bought into the slew of new condo developments are expected to become landlords. It is estimated that about 25 to 40 percent of new or converted condo units in Florida will return to the market as rentals.
For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com
Richard Recuset-Multi-Million Dollar Producer-The Recuset Group
Now, affordability is an issue again, thanks to escalating housing prices, insurance costs and property taxes. Furthermore, an expected tightening in the lending market may make the creative mortgages of the recent past harder to get.
The upshot: Renting is making a comeback. Home rental rates in Miami have been increasing since last year. Too see why, simply glance at the real estate listings. A typical three-bedroom home in say, Coral Gables, cost about $700,000, bringing monthly mortgage, property tax and insurance payments (assuming a conventional loan and down payment) to upwards of $5,000 a month. Similar homes in the area can be rented for less than $ 2,500.
The increased interest in rentals is coming just as the supply of rental units is on the rise. On the apartment front, rental units had become hard to find in recent years as rental communities converted to condos. Now the trend is reversing.
More than 4,200 units that had converted to condo reverted back to apartments in 2006. In addition, many investors who bought into the slew of new condo developments are expected to become landlords. It is estimated that about 25 to 40 percent of new or converted condo units in Florida will return to the market as rentals.
For professional advise on all aspects of buying or selling real estate, please contact me at-786-287-9272 -email:Richard@RichardRecuset.com
Richard Recuset-Multi-Million Dollar Producer-The Recuset Group
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