Florida Real Estate

I just got back from visiting my cousin in Miami and began to ponder the condition of the South Florida real estate market. Afterall owning a piece of the pie does seem incredibly tempting when you're lying poolside in a bathing suit when way back North everyone is donning winter clothes and wondering how they are going to pay this month's heating bill. So I started to do some research on property values and found out that it actually makes more financial sense to rent than it does to purchase right now if you plan on being a "snowbird" and spending 6 months down there (during our winter up North) and 6 months up here on Long Island when it's beastly hot down there. Now you may wonder how I arrived at this conclusion and to be honest it was just a case of simple math. A nice one bedroom waterfront condo in a lovely complex which is loaded with amenities like a pool, gym, sauna, fitness club and business center will cost at least $350,000. Now add on top of that $300 monthly common charges plus exorbitant real estate taxes (which have been going up at a much faster rate than on Long Island) of $7000 per year and insurance to protect your interior walls (from a dreaded hurricane). If you put down 20% and mortgaged the $280,000 balance at let's say a 6% interest rate, you would be stuck with a total payment of approximately $2600 per month. Meanwhile you would be able to rent the same exact unit for approximately $1500 per month. You tell me what's a better deal? As for me, I am going to wait to see if the prices start to come down because I'm betting that they will. too many condos have been bought by investors instead of owner occupants. This means that if these investors begin to realize that they are losing money every month when the rent does not cover the mortgage payment they will begin to bail out and start flooding the market with thousands of units. I see a good opportunity if this comes to pass.