Why buy real estate in Miami? 5 advantages of buying a condo over renting

The Florida real estate market, and Miami in particular, has been hit hard in recent years. During the housing boom, dozens of developers built large luxury condos in the city that, when the market was bad, were empty. For many, this has created the opportunity to finally own Miami real estate at an affordable price. The Magic City really has a lot to offer, with a warm tropical climate, pristine beaches, an exciting nightlife and a culture that makes the city a true melting pot. Still, you might be wondering if you should take the plunge and buy a condo or just rent one to enjoy the city lifestyle. Here are 5 advantages of buying a condo in the city instead of renting it.

1. Affordability

If you’re ready to buy a condo in the city, which tend to be more popular than single-family homes, you’ll find a number of good deals in desirable areas like South Beach and Brickell Avenue. According to Trulia’s rent versus purchase ratio in 2011, Miami is the main city where it is cheaper to buy than to rent. This index compared median sales prices to median rents for two-bedroom condos and townhomes.

2. Long-term investment

Buying real estate in Miami should be considered a long-term investment, as home prices tend to rise over time. Miami is one of the top 5 tourist destinations in the United States and professionals from around the world continue to move to the area to buy real estate. While home prices are relatively low in the area now, Real estate prices in the Miami metropolitan area have continued to rise during 2012. The thousands of condos left behind after the housing collapse are almost completely sold and several new developments are planned in Miami for 2013, including Bellini Williams Island, Icon Bay, Brickell House and Porsche Design Tower. This shows that the market is definitely picking up in the city and the good deals won’t last much longer.

3. Build equity

Building capital is another thing you can’t do when renting a city condo. Many of Miami’s foreclosed condos are selling at great prices, and with some upgrades, they should be worth a lot more than what you paid for in just a few years. The ability to generate this capital is one of the main reasons people buy real estate.

4. Possibilities of future rental income

If you are trying to decide whether to rent or buy a condo in Miami, you have probably already realized that rentals in the city are very popular. As a major tourist destination, short-term condo rentals are extremely popular in Miami and surrounding areas like South Beach. According to a popular vacation rental website, Florida is one of the top 3 destinations for beaches, pet-friendly vacations, and family vacations. When you buy real estate in Miami or South Beach, you have the possibility to rent your condo in the future to tourists or even professionals who stay in the city for a few months on business.

5. Tax benefits

The biggest tax advantage you get from owning property in Miami is the Homestead exemption, which is good for up to $ 50,000 for Florida residents at their primary residence. The state also offers a senior exemption of up to $ 50,000 in many counties, as well as a widower’s exemption, disability exemptions, and a number of exemptions for veterans.