4 Signs You Are Ready to Buy vs. Rent in Miami
By Aaron Randolph on February 01, 2024
Owning a home in Miami is a dream for people worldwide, whether they plan to live in South Florida full-time or use it as a vacation home. Some choose to live in Miami for business, some for beachside luxury, and others for the city’s renowned nightlife.
Deciding whether to continue renting or purchase a home depends on where you are in life. You’ll need to ask yourself if your career, your financial future, and your lifestyle preferences are suited for renting or buying.
Miami’s impressive amenities and lavish homes can be alluring, and you might be ready to build your own wealth instead of your landlord’s. You may feel excited to take the jump, but you’ll thank yourself later if you assess your situation rationally.
To help with your decision, the team at Prevu Real Estate has outlined a few signs that you might be ready to buy vs. rent in Miami.
Top signs you are ready to buy vs. rent in Miami
- You have a stable career
- You have sufficient savings
- You know your favorite neighborhood
- You are ready to build equity
You have a stable career
If you’re happy in your career and plan on building a life in The Magic City, you might consider browsing Miami homes for sale. Lenders usually look for at least two years of continuous income in the same field when approving a loan.
A dependable career offers peace of mind and serves as a foundational element in your home-buying journey. If you feel like you have stability in your current role and see continuity over the coming years, it might be time to think about becoming a homeowner.
No matter your professional path, a steady income stream allows you to stash some savings and be able to afford a property. Also, if you are planning to take out a mortgage for your purchase, your lender will want to see steady employment.
You have sufficient savings
One of the pre-requisites of purchasing a home or condo is adequate savings for the initial down payment, closing costs, and extra funds post closing for any unforeseen circumstances or planned renovations.
If your financial situation has been strong, you might have previously used the excess cash to rent places with enhanced amenities or more square footage. But, if you’re beginning your search for a home to buy, you’ll probably want to squirrel away extra funds for your down payment.
The price of a down payment in Miami is usually at least 10% of the purchase price of a condo and 20% of a home’s purchase price, but it's always good to have more than you think you’ll need to cover any surprises. Aside from your initial down payment, a reserve fund can provide you with a capital cushion to feel confident with a purchase.
You know your favorite neighborhood
Renting in Miami allows you to experience daily life around the city by living in some spots and visiting others. Maybe you’ve spent a year in one of Wynwood’s chic apartments, enjoying the convenient location, or soaking up the sun in your private backyard in Coral Gables.
Either way, renting can help you decide if you want to live by the beach or in the heart of Downtown Miami, whether you prefer driving or using public transportation, and how often you’ll head to the beach.
By experimenting throughout the city, you’ll get a good idea about which neighborhood suits your lifestyle and what home style you prefer. You can start by setting up property alerts to stay up to date with new listings in your favorite areas.
After renting for a while, you may feel comfortable investing in a community you love more permanently.
PREVU SMART TIP
Did you know you can get a rebate from your real estate broker in Miami? Buying with Prevu you’ll pocket a buyer's rebate up to 1% of your home's purchase price. On a $1,500,000 property, you’d receive up to $15,000 cash back.
Learn how you can save!You are ready to build equity
If your savings are adequate to purchase a home, you may want to invest in your financial future to potentially grow your wealth.
Real estate can be a powerful way to create wealth over the long term. Owning a home allows you to build equity as you pay down your mortgage, instead of paying your landlord’s mortgage as a renter.
So if you are tired of canceled rent checks and have the desire to invest in your own future, it may be time to stop renting and start buying.
