WOW! Just WOW! The Tampa Bay area has been on the list of places that make the decision to buy versus rent easy for several years, including last year when reports came out that it was 42% cheaper to buy vs renting in the Tampa Bay Area.
In the newly released Rent vs Buy report from the economists at Trulia, it is now 50% cheaper on average to buy in the Tampa Bay Area than to rent! As opposed to the national average of 37.7% (which is still pretty awesome).
One of the most important aspects that can’t necessarily be quantified is when you buy a home with a fixed rate mortgage, you gain control, locking in your base monthly payment for the entire term. In contrast when you rent, your monthly payment increases by an average of 3-8% per year (based on the consumer price index). There are expenses that you can’t lock in (whether you buy or rent) such as taxes, insurance and utilities, which is why I always recommend investing in a home that is under your current budget.
Now let’s talk appreciation. Let me start with saying something that you might not expect from a real estate agent. You should NOT count on your home to be an financial investment tool. It is absolutely an investment in you and your family’s peace of mind and lifestyle. It is also a great way to lock in low payments and eventually eliminate payments when your loan is paid off, saving you a ton of money. However unless you are renting out rooms, you are not likely to be generating monthly income. And although historically real estate has always increased in value over time, the housing market is cyclical and there is no guaranty that prices will be up when you want to sell. That said over the past year the bay area has seen roughly 10% appreciation and predictions are that we’ll see at least 4% over the next year.
On that note, let’s talk about investing in Tampa Bay real estate. With the huge gap between our rent rates and mortgage payments alone, it is a perfect storm for building MASSIVE Wealth! Add to the mix, the accelerated growth and amazing development in downtown Tampa and downtown St Pete, the influx of tech companies, and being one of the top tropical areas that people are moving to from all over the world; Wow what an opportunity!
Written by: Elijah G Ramsey III
Want to know what this means in your specific situation, or how you can take advantage of the current market? Call me atto discuss your options.
Elijah Gardner Ramsey III
Associate Broker & Trainer
Pinard-Ramsey Real Estate
Keller WIlliams Realty St Pete
111 2nd Ave NE Suite 400
St Petersburg, FL 33701
Elijah Ramsey III, Tampa Bay Times, Trulia, Zillow, National Association of REALTORS®
Want to know more about how these numbers are generated? Click here to see the full methodology used in these calculations.