For those who are truly attracted by Miami Beach’s magic and are seriously considering about moving to Miami Beach, most likely have asked themselves if is better to buy or rent in Miami Beach? We are going to answers this question considering and average rent in Miami Beach versus purchasing a property with a conventional loan with fixed monthly payments.
“Beautiful Sandy beaches, renowned restaurants, wild nightclubs and the world largest collection of Art Deco architecture turn Miami Beach in one of the hottest places to live in” according to Livability.com. “Several golf courses, beautiful museums and high end malls offer even more entertainment options. Miami Beach is a magnet that has a very diverse group of residents while attracting thousands of tourists every single day.”
Miami Beach, not a mere city anymore, has become an international brand that represents glamour, youth, fun and beautiful beaches. However, Miami Beach is not only a tourist attraction place or Tony Montana’s headquarters, but one of best cities to live in United States in 2015 according to Livability.com ranking where Miami Beach landed the position number 38.
There are several factors that help Miami Beach attract so many people willing to move: the sunny weather throughout the whole year, easy access to sandy and beautiful beaches, several options to world renowned and prize awarded restaurants, classic and modern architecture, rich ethnic and cultural diversity along with several attractions and proximity to Miami.
Is it better to buy or rent a home in Miami Beach?
Before sharing our final verdict, it is better if we start with some numbers and statistical data so you can draw your own conclusions. Let’s start with demographic data. Miami Beach currently has an average household income (per family) of $43,321 with a total population of 88,628 according to Livability.com data in 2015. Regarding real estate, the average home price in Miami Beach (during 2015) was $330,000 while the average rent in Miami Beach was $2,200. Based on the current banking data home mortgage rates, purchasing a home in Miami Beach would result in a monthly payment between $1,500 and $1,800 which obviously is lower than the $2,200 average rent price.
Now, if you base your decision in this current data and you qualify to purchase a property (steady income, credit history and down payment); would you rather rent or buy a home in Miami Beach?
If we consider only the above presented number, it doesn’t make sense to rent a property in Miami Beach if you are eligible to purchase. If you decide to buy a home in Miami Beach instead of renting the same home, you would save more than 35% in a monthly basis while enjoying the benefits of home ownership. Trulia (a real estate website juggernaut) concluded from a study in October of 2015 that buying a home is 23% cheaper than renting nationwide. However, in Miami, that said difference is a little wider since buying a home in Miami is 43% cheaper than renting in Miami.
Please do not forget that purchasing a home in Miami Beach is not risk-free although several home purchases in Miami Beach are discretionary which means that a lot of homes are bought for investment or vacation purposes where both types of homes are highly susceptible to economic ups and downs. Furthermore, when political instability rises in Latin-American countries, foreign buyers find in Miami a good place to safeguard their assets in the real estate market in Miami and Miami Beach. This fluctuation in foreign investment in real estate tends to deeply impact (both positively and negatively) the local real estate market.
Regardless of all risks involved in buying a property or investing in real estate in Miami Beach – or any real estate market in the world – there is nothing like ownership both as an investor and as a home owner… and if you agree, there is no better place than Miami Beach.