If you happen to be one of those people who are renting a Palm Beach home at the moment instead of investing in the abundant Palm Beach real estate market, many people will tell you that you’re actually making a smarter decision.  After all, why would you want to buy South Florida homes when the market is still vague and there’s no guarantee your home won’t lose any money?

If you are a renter, you’ll be pleased to know more people are doing the same.  In fact, research by the National Association of Realtors shows a considerable surge in renting this year so far.  So obviously renters are making the more intelligent decision by staying away from buying, correct?

Yes and no.  To its significant credit, the relative “commitment free” approach of renting is a huge perk.  Usual requirements when buying a Palm Beach home like insurance and mortgages become a moot point in renting.  In many cases, the responsibilities on a renter’s end are to pay the determined amount every month, the utilities and in some cases fulfill the length of the lease agreement.  Once that agreement ends, they can leave the home knowing they hold no kind of financial or legal responsibility for it.

In contrast, all that rent money that disappears does not goes towards any sort of investment the renter can benefit from, unlike owning a home in which the property itself becomes a financial asset that builds value over a period of time.  And also, that same rent money could have nearly if not completely covered the cost of a down payment on an inexpensive home.

If renting is working splendidly in terms of ensuring a roof over your head, food on the table and money to pay the bills and enjoy life, buying doesn’t make much sense.  Assuming you do have enough money to buy a home, when you’re evaluating the future of your living situation and are looking for something that you’ll eventually be able to sell for more than its original purchase price, buying remains the more lucrative choice.