Buying a home in Sarasota is cheaper than any other city in America according to a report from online rental marketplace Apartment List. — that is, if the only alternative is renting.
The decision to buy a home or rent is a hotly debated topic—both a personal and a financial decision. On the financial side, however, buying in Sarasota is significantly cheaper than renting according to a recent study from real estate giant Trulia.
Should I Buy a Home or Just Keep Renting?
Despite home prices that have risen steadily during the past three years, the overall costs tied to homeownership through a conventional 30-year mortgage is now 55 percent cheaper in the North Port-Bradenton-Sarasota market than rent for a comparable abode.
Total homeownership costs include mortgage payments, taxes, closing costs, maintenance, and insurance. Total renting costs include renter’s insurance and security deposit. They also took into consideration the opportunity cost of using money to buy a home instead of investing it, and they assume a 3.87% rate on a 30-year fixed-rate loan.
In the past, a large gap like that signaled a good opportunity for young families to buy their first home. But instead, homeownership rates now flirt with 20-year lows. Home prices in Sarasota are climbing out of reach, wages largely remain stagnant, loan availability is now tougher than it has been in decades, and there is fierce competition for a limited supply of desirable listings.
Those conditions are forcing consumers in this region to rent, even in an environment where it would be drastically beneficial to their personal finances — and the health of the overall economy — to buy.
Norton Hammersley can help guide you through the legal process of acquiring new property. Our real-estate practice group provides comprehensive legal representation to individual and corporate clients in the acquisition, development and sale of residential and commercial real property, leasing and financing of single-family homes, multi-family projects, residential subdivisions, hotels, office buildings, condominiums, shopping centers and other real-property developments throughout Sarasota and Florida.