Marla Martin, Communications Manager, or Jeff Zipper, Vice President of Communications
407/438-1400, ext. 2326 or 2314

Editor’s note: This is the fourth in a series of five articles focusing on the advantages Florida’s residential real estate market currently offers to buyers.

Why Buy a Florida Home Now? Ownership Trumps
Renting in Today’s Market, Say Florida Realtors®

ORLANDO, Fla., Jan. 21, 2008 – If you’re renting a residence instead of owning your home, now is an ideal time to buy a Florida home. Lower sales prices, seller incentives and affordable mortgage rates make early 2008 a buyer’s market.

“Homeownership is an excellent financial investment for most renters, especially in our current real estate climate,” said Nancy Riley, a broker with Coldwell Banker Residential Real Estate in Pinellas County and the 2007 president of the Florida Association of Realtors® (FAR).

In many Florida markets, buyers can purchase a home with a small downpayment – in many cases with a low-rate FHA or VA mortgage loan. In many cases, the monthly mortgage costs are comparable to rent payments. And landlords typically include property taxes and insurance premiums – the other major costs of ownership – into a tenant’s rent.

While renting a home or apartment may make sense for someone who expects to move in the next year or two, ownership continues to be “a wise, long-term investment,” said Scott Bowman, broker-sales manager with Prudential Shimmering Sands Realty in Panama City and the president of the Bay County Association of Realtors®. “Financing remains available, with very favorable mortgage rates for qualified buyers with good credit.”

Owning a home typically delivers three major financial benefits:

• Deductions on your annual income tax return. Most Florida homeowners can deduct the property taxes and mortgage interest payments from gross income. So, if you pay $12,000 a year in interest and $5,000 a year in property taxes, you can subtract $17,000 from your taxable income. On the other hand, a renter can deduct nothing.

• A locked-in monthly payment with a fixed-rate mortgage. If you purchase your home with a typical 30-year fixed-rate mortgage, your principal and interest payments will not change for the life of the loan – a significant benefit as your paycheck is likely to rise over the years, while your costs remain stable. If you rent for 30 years, you can expect your payments to rise steadily.

• Appreciation. If you plan to stay in your home for more than three or four years, you may well benefit from price appreciation. Historically, Florida homes have increased in value every year. Even with the recent downturn, home prices in 2008 are substantially higher than they were five years ago.

In November 2007, the median sales price for existing single-family homes was $215,800 – an increase of 52.5 percent from the median price of $141500 in November 2002, according to FAR records. The median is the midpoint; half the homes sold for more, half for less.

“Throughout Florida, buyers are in the driver’s seat,” said Deborah Bacarella, owner/broker of Realty World in Boca Raton. “With all the great deals out there, buyers can make their dreams come true.”

The Florida Association of Realtors (FAR), the voice for real estate in Florida, provides programs, services, continuing education, research and legislative representation to its 150,000 members in 67 boards/associations. FAR's Media Center Web site is available at http://media.floridarealtors.org.