Let’s assume someone is looking for a place to call their own for the very first time in Palm Beach. The general consensus seems to be that they should wait a little longer, buying Palm Beach real estate will result in losses which is true. Renting, once considered a silly decision, now holds a larger degree of worth, just ask the experts.
Per the National Association of Realtors yet another mass of people contributed to another boost in renting. Considering how “iffy” real estate is right now and the lower prices of South Florida homes, this research makes complete sense and some may say is indicative of smart money management on behalf of the renter.
When we take a look at renting, it does make complete sense. After all, the renter gets a place to live and to customize to a certain degree without having to trouble themselves with all these things like property insurance, closing costs and most of all, mortgages. Once they’re ready to move to a larger place, the responsibilities on their end are mostly relegated to ensuring that the last month’s rent and utilities have been paid off and that the potential lease agreement has been satisfied.
Now let’s say this renter stayed in the home for a year. On the lower end, that’s more than $10,000 dollars spent in rent alone and all that money does not contribute to any long term benefits, a notable difference when a renter owns a home that can generate substantial equity and/or value. It’s also worth nothing that the year’s worth of rent payments are practically equivalent to a down payment on a no frills Palm Beach home.
Is this a thinly veiled advertisement persuading readers to buy a Palm Beach condo or home? Not necessarily. After all, buying is expensive and it requires large capital to deal with the numerous costs involved. Renting has its own excellent benefits but instead of just playing it safe because a friend says buying is a bad idea, try doing your own research or consulting an impartial real estate agent. A venture that seems audacious at first could reap long term rewards.
