The pristine white beaches, sparking blue water and gorgeous weather are enough to make most visitors want to call Manatee County home.
But when moving to this peaceful paradise, many new residents are faced with the nagging question: Is it better to rent or buy?
With more than 5,250 homes on the market in September compared to only 1,705 during the same month in 2005, according to the Manatee Association of Realtors, many in the real estate business believe there is no time like the present to purchase a home.
"People have a great inventory to select from right now," said Cindy Morton, a Realtor with Premier Properties of Southwest Florida. "My advice would be make your best offer. Find the property that you like the best, maybe your top three and start making offers on them because this market will change. And the opportunity to get something at the best price will be gone."
The key to deciding whether to rent or buy is to come up with a realistic budget to determine exactly what you can afford.
"If you are able to buy, the smartest thing to do is get out there and look," Morton said. "But both options, renting and buying, are pretty good right now. A lot of people are renting because they are waiting to see what the market is going to do. They want to know if it is going to come down a whole lot more."
But by waiting, buyers may regret missing out on some amazing deals, she said.
"The market is down. Now is the time," Morton said. "When this happens on Wall Street, people run in and buy stocks. When IBM drops from $160 a share to $90 a share, people run in and buy it."
Milt Flinn, president of Lakewood Ranch Realty, said his company is seeing a lot more buyers than renters this fall.
"Our sales, year-to-date, at my company, are up 39 percent at the end of September," Flinn said. "We think it is going to be a more favorable season next year. I think if you lock yourself into a 12-month lease right now you are going to miss the great deals. Because 12 months from now I think it is going to be a completely different market. Prices may start to increase."
Even though there has been a lot of reports of lenders being more cautious about providing mortgages, Flinn said he hasn't found that to be the case.
"I haven't had any problems with the credit issue," Flinn said. "A lot of the bigger lenders like Bank of America basically offer the same kind of products they always did."
And while many newcomers to the area have heard horror stories about the cost of property taxes and insurance, Flinn said it is not all bad news.
"We specialize in $300,000 to $600,000 homes and the property taxes on a $300,000 house are not unrealistic to what you find in the rest of the country, especially up in the Northeast," Flinn said.
Jeanette Ward, Realtor with CounTreeWide Realty, said sellers are ready and willing to negotiate.
"It used to be location, location, location. Now it is definitely price, price, price," Ward said. "Renting is certainly a good option because sellers are negotiable, but it is the time to buy. A lot of my sellers are coming up with different incentive packages like they will pay your taxes for your first year or they will pay your homeowner's association fees. They want you to buy this home today."
Tips for new residents:
For those planning on living in Manatee County for at least 10 years, it is a good time to buy. But when purchasing a home, buyers must consider all the expenses beyond simply the mortgage. Homeowners will face property insurance, property taxes, closing costs and real estate agents' fees.
Come up with a realistic budget. If your budget is tight, consider renting. A general budgeting rule is that renters should spend no more than 30 percent of their income on rent.
Consider a lease option. A renter can sign a lease with an option to purchase the property for a specific price within a certain time frame. In most lease-option situations, a portion of the rent is applied to a future down payment.
If you are having trouble deciding whether to rent or buy, The New York Times offers an interactive calculator on the housing analysis available at nytimes.com/leonhardt.
