Real Estate in Northeast Florida and Around the World

At least once a week, I am asked by someone if they should still rent or go ahead and buy.  With the real estate market showing steady signs of improvement, 90% of the time I will respond that it is definitely a good time to buy.  But there are some instances where it makes sense to continue to rent.  Here's a quick formula to determine what is best for you:

* Divide the price of a home you are considering by the annual rent for a place that is comparable in features and location. If the number falls below 15, the scale begins leaning to buying.

* Consider whether you will stay in the home long enough to make the purchase worthwhile. You will need to factor not only the cost of the home, but also paying of closing costs if you are not able to negotiate the seller paying them, as well as any necessary improvements or repairs that you would do. Even if the market value does not decline, should you sell the house and buy another in two or three years, you could incur a loss of investment.

* To have true recovery on your investment, analysts say you should not buy unless you are committed to stay in that dwelling for at least 5 years.  Not all real estate markets are alike, so it is always best to get professional advice from a trusted and professional Realtor®.

So, whether you rent or own, just keep an eye out - I hope to see you around one of our Northeast Florida neighborhoods!