Housing Market / Hurricane Risk / Insurance (Miami, Fort Lauderdale: rent, mortgage, house)

[StreetSmarts]

Originally Posted by ec-d

Also, what is the trend on the housing market down there?

The market in LA has run up fast from 2012. Prices seem to be slowing now, but there's still bidding wars on anything in a remotely desirable location -- feels a bit bubbly. Hopefully not that bad yet in South FL?

. Oh it is. All over FL. Feels very bubbly.

[ec-d]

Originally Posted by StreetSmarts

. All over FL. Feels very bubbly.

Grrrr....It's a bummer to be 3 years late to the party. All the fun cities shot right back up to peak prices already. Apparently there's still deals to be had in the rust belt tho! (smh)
Looks like Zillow is actually predicting a -1.8% correction for Fort Lauderdale in 2016.

[wizrap]

Yes, definitely rent for a year before buying. You sound like a savvy investor but it is still not worth the pain of moving down, buying quickly and then being underwater due to a correction. And to make it worse, wanting to move because in the end, you don't really like the area.

[ec-d]

Originally Posted by wizrap

being underwater due to a correction.

I could probably buy a house outright in FL, so there's zero risk of me being underwater. That's why I say the economics are so favorable to me buying vs renting. But obviously if home values are falling, then there's no rush at all -- might as well wait a year (rent) and see what the market is going to do.

Are there any real estate agents (or extra knowledgeable homeowners) in this thread? Is this expected to just be a mini price correction in '16 or are home prices so far out of whack that they'll likely be falling for a few years?

[wizrap]

You're correct in that you wouldn't be underwater because you wouldn't have a mortgage but you could still incur a loss -- you buy a home for half a mill, for example, decide you don't like the area & decide to sell and because of market values find it's now worth $400k (for example). So I would take a year to rent, IMO.

As for real estate values, no one has that clear crystal ball. I'll give you my recent experience--I own a home that I rent. In October, prices seemed to be rising rather quickly and all signs pointed to my increasing the rent by about 20%. My tenant's lease is up at the end of this month and my realtor's comps show some softening of the market. Looks like I'll be seeking a 10% increase. I don't know if this helps or not.

IMHO, if you really want to put the odds in your favor, go beachfront. Values will still fluctuate but ocean view is always desirable.

[SDC_RN]

I too am looking to relocate to the area, but not for another 6 months which is why I am here.
it looks like you have done all the homework you can do on your own. I would personally advise you talk to a realtor because they are suppose to know the ends and out of the area, also I have been reading the newspaper online its been a little helpful to kind of be in southern Florida...I hope this helps a bit

[City Guy997S]

Originally Posted by ec-d

Also, what is the trend on the housing market down there?

The market in LA has run up fast from 2012. Prices seem to be slowing now, but there's still bidding wars on anything in a remotely desirable location -- feels a bit bubbly. Hopefully not that bad yet in South FL?

Good neighborhoods are bubble central right now.....

2439 Del Lago Dr, Fort Lauderdale, FL 33316 - Home For Sale and Real Estate Listing - realtor.com®
This one is 7.3mm, yet it sold for 5.3 back in March. House is a teardown, it doesn't even have a pool and they have done nothing to it since March.

[AnnRyan]

Based on what you've written, it sounds like you might want to consider Cutler Bay.

Small, single family homes, nice quality of original construction, but frequently in need of updating.

There's a cash-only foreclosure in need of a new roof and other work on the market for $240K, and another with a pool at $300K needing just updating.

The reason I think of this area for you is that there's the local Black Point Marina, a major hub for sports fishing in Miami-Dade county. Take a boat out of there, and you'll be quickly in the Florida keys (or just drive about a half hour South).

You'll also be within about 45 minutes from all the bars, restaurants, clubs etc available in Miami.

Generally the rule of thumb is that the closer you get to Miami, the more expensive real estate becomes.

[croatbob]

rent money is dead money... if you plan on staying more than a few years id rent for a year to see of you liked it then buy

[riki tiki]

I came across a business journal that mentions the boost to south Fl economy begining 2016
the Cruise ship tunnel project in miami and a theme park resort project also. you have to google it to see the number of jobs coming, which in turn may lead to increases in home and rental prices. I'm happy to say I did'nt come to Fl looking for a job