Miami Beach First Time Home Buyer Advice

[Aleksandar Milosevic]

Hi good people.I need a advice..I am single 40 years old living in Miami Beach and I would like to stay here.Currently I am paying rent and I have 100k in savings for real estate.What you will do in this market if you are in my position?Would you buy Condo leave for a while and rent later  or buy somewhere else property with a cash flow and continue to pay the rent.Market here is crazy,everything is looking so expensive.Thanks

[Raymond J. Rodrigues]

@Aleksandar Milosevic, I would reach out to @Malgorzata Sadowska. She always provides sound advice and is our market expert. 

[Ray Hage]

@Aleksandar Milosevic, well if your plan is to stay long term (at least 5-10 more years), I would advise buying as rents are going to continue climbing. There are many benefits to homeownership including a fixed mortgage and you can write off the interest. Is there a particular area of Miami Beach you'd like to be in? It is expensive in Miami but if your plan is to stay, it will be more expensive to rent later. I'd be happy to answer all your questions as I am both a realtor and investor in south Florida. I used to live in Miami Beach and Edgewater so I am familiar with the area.

[Joe Biscaha]

@Aleksandar Milosevic elaborating more on the two suggestions you mentioned. 

1. Option #1 Buy a Condo in Miami Beach: You could buy a condo to live in now and maybe rent out later. This way, you won't pay rent anymore, and you might gain equity if the condo value increases. Since it is your primary residence you will be able to take advantage of a lower down payment and better interest rate. 
2. Option #2 Invest in a Property Elsewhere: You could buy a property in a cheaper area and rent it out for income. You would still pay rent in Miami Beach, but you'd make money from the other property. This option needs more work, like managing the rental property and you will be required to put down a larger down payment and a slightly higher interest rate. 
3. Both choices have good and bad points, so think about what's most important to you. If you need more help or want to talk about finding a property, feel free to contact me.

[Joshua Townsley]

Depends where you want to be at the end of the day. if you will be here a while then buying is a good idea, you will build equity without a doubt. However if you want to leave soon then maybe renting is the better option for you. Remember properties are cheaper outside Miami which looks attractive year 1 but year 5 the rent growth in large metros will so far outweigh the first year difference it is worth buying the more expensive place now more times then not. 

[Aleksandar Milosevic]

Quote from @Ray Hage:

@Aleksandar Milosevic, well if your plan is to stay long term (at least 5-10 more years), I would advise buying as rents are going to continue climbing. There are many benefits to homeownership including a fixed mortgage and you can write off the interest. Is there a particular area of Miami Beach you'd like to be in? It is expensive in Miami but if your plan is to stay, it will be more expensive to rent later. I'd be happy to answer all your questions as I am both a realtor and investor in south Florida. I used to live in Miami Beach and Edgewater so I am familiar with the area.

Thank you

[Aleksandar Milosevic]

Quote from @Joshua Townsley:

Depends where you want to be at the end of the day. if you will be here a while then buying is a good idea, you will build equity without a doubt. However if you want to leave soon then maybe renting is the better option for you. Remember properties are cheaper outside Miami which looks attractive year 1 but year 5 the rent growth in large metros will so far outweigh the first year difference it is worth buying the more expensive place now more times then not. 

Thanks a lot 

[Aleksandar Milosevic]

Quote from @Joshua Townsley:

Depends where you want to be at the end of the day. if you will be here a while then buying is a good idea, you will build equity without a doubt. However if you want to leave soon then maybe renting is the better option for you. Remember properties are cheaper outside Miami which looks attractive year 1 but year 5 the rent growth in large metros will so far outweigh the first year difference it is worth buying the more expensive place now more times then not. 

Thanks.
I like Miami Beach,I see myself here for the next 5-10 years and I think the prices will just go up here,low inventory and huge demand and many cash buyers.Also high HOA and insurance 😂.Beach life is the best 🥂

[Joshua Townsley]

Quote from @Aleksandar Milosevic:

Quote from @Joshua Townsley:

Depends where you want to be at the end of the day. if you will be here a while then buying is a good idea, you will build equity without a doubt. However if you want to leave soon then maybe renting is the better option for you. Remember properties are cheaper outside Miami which looks attractive year 1 but year 5 the rent growth in large metros will so far outweigh the first year difference it is worth buying the more expensive place now more times then not. 

Thanks.
I like Miami Beach,I see myself here for the next 5-10 years and I think the prices will just go up here,low inventory and huge demand and many cash buyers.Also high HOA and insurance 😂.Beach life is the best 🥂

Got to love it here or else you will hate paying for it 😂

[Luis Maqueira]

Hi

The rule is to buy a business or income-producing asset first. (nee to work for it)

with the extra cash pay rent or better a mortgage for you condo... You will bill wealth. 

Find a investor-savvy realtor to help you..

I was told once, We do all wrong we buy a car instead of a downpayment for an income-producing asset. With the extra cash to lease a car,  in 10 years you triple your money and still have a free car lease payment for life...

good luck 

LUis

[Mario I Fernandez]

It is true that the life in Miami Beach is super great and if you love it you should buy there and stay at the property or rent it out if is possible with a good cash flow.

Now if you are looking to create wealth I would suggest to invest out of Miami Beach, anywhere from Homestead to Ft. Lauderdale area.

[Aleksandar Milosevic]

thank you.

[Ray Hage]

@Mario I Fernandez fully agree with your assessment! If you want to live in that beach and willing to pay for it, then 100% yes but don't expect it to make you big money at today's prices. Hopefully they go down a bit to make Miami beach profitable again. Even Fort Lauderdale is tough at the moment (but much better than Dade county)