Since the economic crash the real estate market has been suffering, but this year things have really started to turn around, which means it’s a great time to buy in Palm Beach County. Right now it’s the ideal time for investors, second home buyers, move-up buyers and first time buyers to invest in property, so read on to discover all the benefits of buying real estate in Palm Beach County.
1. Interest Rates are Low
Last year interest rates hit historically low levels and although they’ve risen a little since, it’s still a great time for property buyers. It’s still possible to use FHA programs to borrow money to buy a home at a much lower than average interest rate, so you can borrow more for the same payment as a loan with higher interest. Securing a mortgage can be challenging, but if you have a good credit rating, a secure job and a reasonable down payment it should be relatively straight forward.
2. Cheaper Home Prices
Although the market has begun to stabilise, house prices in Palm Beach County have been steadily dropping for the past five years. During 2004-5 many homes more than doubled in value and many homes that would have cost over half a million dollars in 2005 are now selling for less than $200,000.
3. Wide Selection of Homes
With plenty of foreclosures and short sales there are more than enough bargains to be bagged. In Palm Beach County over half the homes being sold are short sales, bank owned or REO properties. The situation makes things a lot easier for the buyer as home owners are looking for a quick sale and guarantees that the buyer can follow through, so there’s a lot less need to haggle on price, which can often be an uncomfortable aspect of home buying.
4. Property is a Tangible Asset
In these uncertain times getting your hands on a tangible asset like property is a great way to invest your money. A home is a fantastic commodity and as prices have dropped so significantly they won’t rise too far so it’s highly unlikely that you’ll end up making a loss, something which definitely can’t be said for other forms of investment like stocks and shares.
5. Fantastic Location
Florida is one of the world’s most visited areas and those that are lucky enough to live there usually never want to leave! With access to tourist attractions like Epcot and Disneyworld, as well as incredible countryside right on your doorstep, Palm Beach County property is a great rental investment. But with so much on offer in the area it’s the perfect place to settle down and make a home too.
6. Lifestyle, Culture and Security
Living in Florida is all about the lifestyle and Palm Beach County is the ideal place to create a work life balance or a home from home that you can use to relax in during vacations. Gated communities offer a fantastic feeling of security so you and your family will be protected and your children can be free to explore and play. With a second to none police service, hospitals and other facilities you’ll always be well protected. When it comes to culture, there’s a plethora of entertainment to keep you busy including world class shopping, sporting events, theater, concerts and nightlife.
7. Short Sales are Quick and Convenient
With so many short sales available, the process of securing one is getting quicker and quicker. Whereas in the past a short sale agreement could take 100 days to finalise, now the deal can be done in as little as 30 days.
8. Sales are Increasing
In 2008, the inventory for selling homes in the Palm Beach County area was 35 months. That meant if no more homes came on the market it would take 35 months to sell all the homes currently on sale. Today the absorption rate is set at ten months, which shows just how much the market has picked up. The increase in interest will inevitably lead to an increase in house prices, which is why it’s wise to buy now whilst homes are still relatively cheap.
9. Mortgage vs Rent
Whilst house prices have dropped, rents are increasing, which means that if you’re renting, you could be paying more every month than you would for a mortgage. In 2004, the average Palm Beach County single family home rented for around $800 a month, today that figure stands at around $1500 a month. However, with a property worth around $100,000, you could pay as little as £600 dollars a month in mortgage repayments.
10. Real Estate is a Wise Investment
Today, it’s easy to get a 6-12% return on the average Palm Beach County family home and people renting family homes are likely to be much more reliable tenants than those who rent condos or apartments. However, if you haven’t got a lot to invest a condo is a great option, with some selling for as little as $50,000 and still offering a great return on your investment.