Aspiring Florida Home Buyers Are Being Blocked Out By Investors
It has been a wild ride in Florida’s real estate market this year. Aspiring Florida home buyers find it increasingly difficult to purchase family homes in Winter Park and the surrounding areas. Would be Florida home buyers are finding it frustrating to compete with heavy pocketed cash buyers as well as well financed real estate companies that are slipping in and scooping up homes.
One of the American dreams is to become a homeowner. Especially right now. For a lot of Florida home buyers this has become a nightmare. Many Central Florida natives have been working hard to purchase a home, but their bad luck seems to continue, with no end in sight. Repeatedly, families are finding and making offers on homes that they want to purchase, and mere hours later find out that they have been outbid by wealthy cash buyers or deep pocketed real estate companies.
Why Is This A Continuing Issue For Florida Home Buyers?
This is not happening just once or twice. Many aspiring Florida home buyers find that they are boxed out by other, out of state, bidders’ multiple times over. Real estate investors are purchasing homes with all cash and then renting them to the same community hoping to purchase their first home. This is not a new issue; however, it has become increasingly noticeable, since fewer houses are for sale in the Central Florida market. This process is making it extremely difficult for first time home buyers to purchase a property. In fact, this has become such a big issue that most first-time home buyers have stopped looking altogether. As Central Florida becomes a more and more popular destination, first time Florida Home Buyers are afraid that they will never break the rent cycle.
The National Association Of Realtors Chimes In
The NAR (National Association of Realtors) has guessed that in 2022, about 2.5 million American families won’t be able to buy their first home, because of real estate investors. The National Rental Home Council has found that senior citizens, and families whose children have flown the nest, are looking to purchase single-family rental homes. However, Millenials are mainly responsible for this trend, especially Millennials with young families or young children.
Most rental properties, that are single family, are priced around $2,000 to $2,700 a month across multiple rental platforms. For example, a Maitland, Fl rental home with 3-bedrooms and 2-bathrooms was listed for $2,695 a month. This seems utterly ridiculous, or is it? Realtor and mortgage lenders explained that this particular home would most likely sell for about $399,000. After crunching the numbers, with a conventional fixed-rate loan (assuming the buyer has decent credit) when including the taxes and insurance, the payment to buy this property is roughly $2,780 a month. So, it’s really only a difference of about $85 per month to rent versus buy. However, when you rent a property, you don’t have the chance to build equity in the home. Building equity seems to be one of the main goals among first time home buyers.
Most First Time Florida Home Buyers Are Ready Buy Now
Most Florida home buyers are ready for their first mortgage payment. Unfortunately, most people will continue to rent. Families are keen to keep saving and attempt to purchase their first home next year. A lot of home buyers have faith that the market will decline in the following months and are hopeful that they’ll have better luck next year.
There is a bright side though. If you’re one of the many first-time home buyers looking to buy, there are quite a few lenders that are offering to help individuals and families compete with big investment companies. These lenders are helping by offering a “cash-like offer” but there is a chance that this could cost extra. This means the monthly mortgage payment could be much higher compared to a traditional home buying path. If this sounds interesting to you, ask your mortgage broker about your options, and see if this is the right type of option for you.
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