28 Jul After Bankruptcy: Florida Is A Renter’s Market
A recent study shows that in some areas of the Country, renting is cheaper than owning. In Florida, especially Southwest Florida, that study speaks volumes. Cities in Southwest Florida, like Fort Myers, Cape Coral, Lehigh Acres and Port Charlotte have been hit pretty hard by the devastating real estate market and foreclosures. Home prices have dropped by 50% in some areas. However, even with the low prices on real estate, lower interest rates and the Obama incentive of $8,000.00 for first time home buyers, new home constuction is nearly DOA in Southwest Florida.
Let’s assume that a person files bankruptcy and surrenders their over-priced home because the mortgage company will not work with them on a modification. Shocking, I know. These people have to live somewhere, so they decide to rent a home. Southwest Florida is a renter’s market right now because we have an abundance of homes ready to be rented. Based upon the study cited above, it may be cheaper for a struggling family to rent than to own. If you think about the cost of home ownership, the concept of renting actually makes sense. I meet with people all the time who tell me that they never want to own a home again. I can understand their issues. Some people truly have horror stories about home ownership. On the other hand, renting has it’s own set of issues.
For some people, it is difficult to conceive of renting. They cannot imagine paying for something that they will never own. I agree with this concept, yet, there was a time when I thought that I would never own a house.
Most landlords renting homes in Southwest Florida are now renting at a loss. In other words, it costs them money to have someone living in their homes. They justify paying $400 or $500 a month somehow. I understand the emotional side of not wanting to lose a home, but the practical side of me has a real problem with this concept. Yet the practice continues day in and day out in the regular course of busines.
Are the renters getting a good deal? You better believe it. Are the home owners hoping the real estate market turns around quickly? You better believe it. So, if you are in the market for a rental, come on down.
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