Individuals in Florida who are interested in buying a home may have to spend over six years to save up for a 20 percent down payment. This is a result of both higher rents and higher home prices throughout the country. According to an analysis by HotPads, it could take some people up to 30 years to save enough money to make a 20 percent down payment on a home.
Summer is a popular time to sell a home. Homeowners in Florida can take certain steps to entice buyers to give their property serious consideration. Having an open house is an effective method for giving prospective buyers an up-close look at a home. However, during the summer, it may be ideal to hold such events on days other than the weekend. For example, open houses that take place during rush hour may provide a more convenient opportunity for buyers to examine a home.
Those who are planning on buying a home in Florida should make use of contingencies and disclosures. When a buyer goes to an open house, the seller should provide a disclosure form that lists all the potential problems with the home. If there are known issues that aren't revealed, it may be possible to ask that they be corrected prior to closing.
Florida residents who are thinking about buying a home should not do so merely for the tax breaks. This is because recent changes to the tax code may reduce a homeowner's ability to lower his or her overall liability. For instance, it is necessary to itemize deductions on a return to write off mortgage interest and real estate taxes. Since the standard deduction went up, people may receive the same benefit whether or not they claim these expenses.
Home sales in Florida and throughout the country are expected to climb 3 percent in 2018, according to a projection from the May 2018 Outlook Report produced by Freddie Mac. This is despite the fact that home prices are surging, interest rates continue to rise and inventory levels remain low. By the end of 2018, the average interest rate on a 30-year fixed-rate mortgage will be 4.9 percent.
Floridians who want to purchase homes but are not U.S. citizens might not realize that they could still be eligible for mortgages. The type of mortgages for which they're eligible will depend on their immigration statuses, however.
When people in Florida go to purchase a new home, figuring out their potential closing costs can help them make better decisions about how much they can afford to spend overall. In many cases, closing costs can be higher than people expect, especially for first-time or inexperienced home buyers and sellers. This means that it can be particularly important for people to know what to expect before they need to put down the money to cover these costs and finalize their transaction.
Prospective home buyers are normally encouraged to save up to 20 percent of the anticipated purchase price for their residential property. However, not having the 20 percent saved doesn't necessarily preclude anyone from being able to move forward with homeownership in Florida.
Millennials in Florida and throughout the nation spent more time either renting or living with their parents while recovering from the Great Recession. Therefore, some have decided to skip the starter home phase and move right into their forever homes. One man's first home purchase was a 2,700 square foot home that cost $360,000 in Long Island. As a general rule, a starter home costs about $150,000 on the low end and usually has one or two bedrooms.
Florida residents who are thinking about buying a home may want to consider doing so relatively soon. Although home price appreciation is expected to slow in the next two years, mortgage rates are expected to hit 5.1 percent by the last quarter of 2019, according to a forecast by Freddie Mac. Home appreciation is forecast to go from roughly 7 percent annually today to about 4.3 percent annually by 2020.