Since the middle of 2008, our country experienced one of the most devastating economic down turns in recent history. The source of the recent recession has been blamed on a housing bubble. As the cost of homes radically increased, many people could no longer make their monthly mortgage payments. As a result, the housing market began to crash and South Florida began to see an insurmountable number of foreclosures.
Many people have taken advantage of the foreclosures and the housing market has now become a buyer’s market. According to an article in The New York Times, the prices of homes have significantly declined in South Florida, Phoenix and Las Vegas. Economist expect mortgage rates to increase within the coming months however.
Deciding whether to buy or rent is still very complicated as down payments, closing costs and other payments must be taken into consideration. An incentive to buying right now for many people is the $8,000.00 tax credit offered by the United States government. Among other stipulations, to qualify for the tax credit, you must be under contract by April 30 and close on a home by June 30.
The rent ratio is a simple way to decide whether buying or renting would be most advantageous. Simply divide the total price of a house by the annual cost of renting. A number above 20 mean that you may want to consider renting. However, a number below 20 builds a compelling case for buying.
The county in which you wish to buy and the state of Florida has many assistance programs to help with down payment and closing costs. Check with your local city site for resources that may benefit your journey toward home ownership. Whenever you decide to move, get the assistance you need from a great Fort Lauderdale mover I always recommend - American Van Lines.
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