DSCR vs. No DSCR Loan: What's the Difference?
If you’ve tried acquiring financing for your investment purchase but can’t get a conventional loan or other solution, like a conventional loan, you...
Pamela Garcia
: December 22, 2021
5 min read
South Florida is drawing in tons of investors. Should you join them? Here’s everything you need to know about the South Florida real estate market in the rest of 2021 and into 2022:
Nearly 1,000 people move to Florida each day — and roughly half of that group heads to South Florida.
Here are some of the reasons so many people are moving to South Florida — and why you should too:
Not only is South Florida a great place to live, but it’s also a great place to invest. Here are some of the reasons why you should consider investing in South Florida real estate:
Here are some important statistics and numbers that you need to know about the South Florida buyer’s market — whether you’re looking for an investment property or a primary residence:
Here are some important statistics and numbers that you need to know about the South Florida renter’s market if you’re looking to purchase an investment property and rent it out:
Experts believe that the South Florida real estate market is starting to slow down in line with other similar markets throughout the country. The market can only remain red hot for so long, and after more than a year of insanity, buyers are understandably getting fatigued. Many buyers felt they had to offer tens of thousands over the asking price and waive all contingencies to win homes. Not only is that unsustainable, but it’s also risky for buyers.
Some of these buyers may now feel that they overpaid for their homes. Or maybe they discovered unexpected and expensive issues after waiving the home inspection and now feel stuck. In any case, it seems like fewer buyers currently in the market are willing to take those risks and are practicing patience instead.
With that said, if you’re waiting around for a “crash” or even a “bubble” that will cause prices to drop significantly any time soon, don’t hold your breath. Lack of supply is still a major issue that will not be resolved in the next couple of years. Demand from first-time home buying Millennials isn’t going anywhere either.
It’s impossible to time the real estate market, so if you’re ready to buy, it makes sense to do so while interest rates are still low.
So how can you buy in South Florida before interest rates go back up and impact what you can afford? First of all, you need to find a lender. Depending on what type of loan you’re looking for, you can find a lender to meet your needs. Just make sure to shop around with multiple different lenders so that you can get the best interest rate.
Additionally, the Federal Finance Housing Agency (FHFA) recently increased the baseline loan limit for single-family homes to $548,250, increasing from $510,400. Homeowners, especially first-time homeowners, can take advantage of this through Fannie Mae and Freddie Mac loan programs.
If you’re having trouble finding a lender or have a unique financial situation that requires a unique loan product, you may want to consider working with a mortgage broker. A mortgage broker acts as a middleman between you, the borrower, and multiple different lenders. This means that you only have to apply once. This also means that the broker can negotiate better rates and terms on your behalf. Just keep in mind that brokers charge fees for their services — usually around 1% of the loan value. It’s up to you to determine whether or not it’s worth it for your needs and expectations.
From there, you need to work with a real estate agent to find the perfect South Florida property. Be prepared to be flexible in terms of your wish list. In a market as fast-paced and expensive as South Florida’s, it may be difficult for you to get everything you’re looking for. However, a good real estate agent should be able to help you find and win a property that meets your “must-have” requirements.
If you’re looking for a lender that knows and understands South Florida real estate, then Vaster Capital is the answer! Vaster Capital is South Florida’s premier bridge lender — providing loans to both individuals and investors alike looking to make their South Florida real estate dreams come true. Reach out to our lending experts today to see how we can make your dream a reality.
Sources:
Miami & South Florida Housing Market Prices & Trends 2021 | Norada Real Estate
Why You Should Invest in Real Estate in Miami Instead of NYC in 2020 | Business Insider
Will South Florida's Real Estate Market Remain Red Hot? | Local 10
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