Trying to decide between renting or buying a home? One key factor that could help you choose is just how much homeownership can grow your net worth. Every three years, the Federal Reserve Board shares a report called the Survey of Consumer Finances (SCF). It shows how much wealth homeowners and renters have – and the difference is significant. On average, a homeowner’s net worth is nearly 40 times higher than a renter’s. Check out the graph below to see the difference for yourself:   Why Homeowner Wealth Is So High In the previous version of that report, the average homeowner’s net worth was about $255,000, while the average renter’s was just $6,300. That’s still a big gap. But in the most recent update, the spread got even bigger as homeowner wealth grew even more (see graph below).     As the SCF report says: “. . . the 2019-2022 growth in median net worth was the largest three-year increase over the history of the modern SCF, more than double the next-largest one on record.” One big reason why homeowner wealth shot up is home equity. Equity is the difference between your home’s value and what you owe on your mortgage. You gain equity by paying down your mortgage and when your home’s value goes up. Over the past few years, home prices have gone up a lot. That’s because there weren’t enough available homes for all the people who wanted one. This supply-demand imbalance pushed home prices up – and that translated into faster equity gains and even more net worth for homeowners. If you’re still torn between whether to rent or buy, here’s what you should know. While inventory has grown this year, in most places, there’s still not enough to go around. That’s why expert forecasts show prices are expected to go up again next year nationally. It’ll just be at a more moderate pace. While that’s not the sky-high appreciation we saw during the pandemic, it still means potential equity gains for you if you buy now. As Ksenia Potapov, Economist at First American, explains: “Despite the risk of volatility in the housing market, homeownership remains an important driver of wealth accumulation and the largest source of total wealth among most households.” But prices and inventory are going to vary by area. So, lean on a local real estate agent. They’ll be able to give you the local trends and speak to the other financial and lifestyle benefits that come with owning a home. That crucial information will help you decide the best move for you right now. As Bankrate explains: “Deciding between renting and buying a home isn’t just about cost — the decision also involves long-term financial strategies and personal circumstances. If you’re on the fence about which is right for you, it may be helpful to speak with a local real estate agent who knows your market well. An experienced agent can help you weigh your options and make a more informed decision.” Bottom Line If you’re not sure if you should rent or buy, keep in mind that if you can make the numbers work, owning a home can grow your wealth over time. And if homeownership feels out of reach, connect with a local real estate agent and lender. They can help you explore programs that may make buying possible.

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  With the construction boom happening in Edgewater and the area surrounding Downtown Miami, it’s no wonder that many people are curious about this blossoming neighborhood in Miami and how it compares to the highly desirable area of South Beach. While South Beach took over Miami’s social scene in the early 2000s, many residents have transitioned to Edgewater, going for a quieter, more refined urban lifestyle that still offers easy access to the beach but is close to more mainland attractions. Edgewater provides a smaller, more neighborhoody contrast, ideal for those looking to "take the edge off" while still enjoying proximity to the heart of Miami. In this article, we'll explore the similarities and differences between these two popular Miami neighborhoods, to help you decide which best fits your lifestyle. — Lifestyle: Edgewater vs South Beach South Beach, on the other hand, is an iconic and much larger, Miami Beach neighborhood thanks to its Art Deco architecture, with colorful, neon-clad buildings lining the streets. The area’s unique blend of vibrant nightlife, a lively urban scene, and stunning, swimmable beaches make it a destination for residents and tourists.   While a lot of its residential buildings are mid- to low-rises or bungalows, South Beach does host some new, modern high-rises, mostly with waterfront views, such as the anticipated Five Park, or direct beach access with expansive ocean views, like the high-end Continuum Residences, which ranks among the five most exclusive buildings in South Beach.   — Eating and Shopping: Edgewater vs South Beach While Edgewater’s dining options are growing, it is still no rival for an international hotspot like South Beach. Fortunately, the area’s quick and easy access to South Beach, Wynwood, Downtown, and the Design District means that within a few minutes, you can access the absolute best dining that Miami has to offer (sometimes better than South Beach in our opinion).    In terms of shopping, Edgewater is still quite a residential neighborhood, although that may change soon thanks to all the new developments bringing retail offerings on their first floors. For now, residents benefit from having a Publix right on their doorstep and more upscale shopping in Brickell, or the Design District just a few blocks away. There’s also The Shops at Midtown for everyday necessities, including a Trader Joe’s, and more big box brands. In South Beach, there are also plenty of great eateries—including a Michelin-starred restaurant. Some of them are located on Ocean Drive and Lincoln Road, which also offer some of the area’s best boutiques and shopping options. These are very touristy areas, so be mindful, especially around peak holiday time.  Beyond these well-known areas, the Sunset Harbour neighborhood offers a more local vibe, with gourmet grocery stores, top-tier restaurants, and boutique shops. Also, the upscale South of Fifth (SoFi) area adds to South Beach’s luxury experience with fine dining and chic lounges. — Parks and Greenspace: Edgewater vs South Beach Edgewater is home to the waterfront Margaret Pace Park, a dynamic green space with many offerings, including running path, tennis courts, a basketball court, beach volleyball, a dog park, a kids’ playground, and more. It’s a perfect spot for those seeking an active outdoor lifestyle. The neighborhood also is a few blocks Maurice Ferre Park (or Museum Park), which surrounds the the famed Pérez Art Museum and the Frost Science Museum. This waterfront park features luscious subtropical landscaping and a breezy promenade that borders the Bay, that will soon connect from the northern end of Edgewater all the way to the Miami River and the Brickell Bridge.    South Beach, of course, boasts its stunning greenspaces, complemented by its iconic beach. The beautifully designed South Pointe Park offers playgrounds, picnic facilities, and direct beach access, making it a favorite for families and outdoor enthusiasts alike. Also, Flamingo Park, located in the heart of South Beach, offers extensive facilities, including a swimming pool, tennis courts, and more. Plus there are many smaller, neighborhood parks throughout South Beach.     All of this plus their variety of sports clubs and fitness centers, make both of these areas two of Miami’s best neighborhoods to stay fit. But we give the edge to South Beach in this category. — Arts and Culture: Edgewater vs South Beach Edgewater offers exceptional access to the arts, thanks to its proximity to some of Miami's most renowned cultural venues. The Kaseya Center hosts world-class concerts and sports events, the Adrienne Arsht Center for the Performing Arts brings a variety of performances and is well within walking distance, and the Pérez Art Museum and Frost Science Museum, are just a few blocks away. Close by are the vibrant galleries and museums of Wynwood and the Design District, making it a hub for culture lovers.   The arts also thrive in SoBe, which is home to the Bass Museum, the renowned New World Symphony and its Soundscape Park, the Fillmore and Colony Theaters, where performing arts take center stage, and the accessible Art Center South Florida, where you can mingle one-on-one with local artists.   South Beach is also home to some of Miami’s most important events bringing people from all over the world. Some of these include Art Basel and Design Miami, Miami Swim Week, and the South Beach Food and Wine Festival.  — Transportation: Edgewater vs South Beach While South Beach offers convenient and versatile transportation options for getting around the neighborhood and other areas within Miami Beach, your alternatives for venturing into mainland Miami are more limited. Edgewater takes the upper hand in this area offering a wider range of choices, as well as easy access to the airport and the main Brightline Station.     If you live in Edgewater, you’ll have access to the free Miami Trolley system and the Metromover, which connects you to the Arts and Entertainment District, Downtown, and Brickell, as well as the wider Metrorail system. If you prefer to use your car, it is also very well connected with easy access to the Julia Tuttle and Venetian Causeways, which connect you to Miami Beach.Meanwhile, South Beach residents can rely only on the free trolley system, which serves only the immediate Miami Beach area, or the Miami Dade County bus system, which provides limited access to areas in greater Miami. — Cost of Living: Edgewater Miami vs South Beach   When it comes to the cost of living, Edgewater offers a more affordable lifestyle compared to South Beach. In Edgewater, you’ll find newer developments with a range of residential options, from luxury condos with waterfront views to investment condos which tend to be more budget-friendly. The cost of living in In South Beach is typically higher, mainly due to its prime location, world-class amenities, and iconic status as a cultural and tourist hub. Condominiums can come with a premium price tag, especially SoFi oceanfront condos. Additionally, dining, shopping, and entertainment options in South Beach often cater to tourists, which can push prices higher.   For example, as of October 2024, Edgewater’s average list price was $860,000 and average price per square foot was $402, while South Beach’s average price per square foot was around $569.   — Which Neighborhood is Better? South Beach or Edgewater? It may sound like a cop-out, but one neighborhood is not better than the other, just different. South Beach is where you go to get the beach vibe, with a big mix of tourists, whereas Edgewater has a bit more of a local vibe and is a very central up-and-coming neighborhood. Both have plenty to enjoy and appreciate. If you still feel indecisive about living in Edgewater vs South Beach, reach out to us and let’s continue the discussion. Our expert team of international real estate agents will help you find the property that best suits your lifestyle.

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  No one likes making mistakes, especially when they happen in what’s likely the biggest transaction of your life – buying a home.   That’s why partnering with a trusted agent is so important. Here’s a sneak peek at the most common missteps buyers are making in today’s market and how a great agent will help you steer clear of each one.   Trying To Time the Market Many buyers are trying to time the market by waiting for home prices or mortgage rates to drop. This can be a really risky strategy because there’s so much at play that can have an impact on those things. As Elijah de la Campa, Senior Economist at Redfin, says:   “My advice for buyers is don’t try to time the market. There are ​a lot of swing factors, like the upcoming jobs report and the presidential election, that could cause the housing market to take unexpected twists and turns. If you find a house you love and can afford to buy it, now’s not a bad time.”   Buying More House Than You Can Afford   If you’re tempted to stretch your budget a bit further than you should, you’re not alone. A number of buyers are making this mistake right now.   But the truth is, it’s important to avoid overextending your budget, especially when other housing expenses like home insurance and taxes are on the rise. You want to talk to the pros to make sure you understand what’ll work for you. Bankrate offers this advice:   “Focus on what monthly payment you can afford rather than fixating on the maximum loan amount you qualify for. Just because you can qualify for a $300,000 loan doesn’t mean you can comfortably handle the monthly payments that come with it along with your other financial obligations.”   Missing Out on Assistance Programs That Can Help    Saving up for the upfront costs of homeownership takes some careful planning. You’ve got to think about your closing costs, down payment, and more. And if you don’t work with a team of experienced professionals, you could miss out on programs out there that can make a big difference for you. This is happening more than you realize. According to Realtor.com, almost 80% of first-time buyers qualify for down payment assistance – but only 13% take advantage of those programs. So, talk to a lender about your options. Whether you’re buying your first house or your fifth, there may be a program that can help. Not Leaning on the Expertise of a Pro This last one may be the most important of all. The very best way to avoid making a mistake that’s going to cost you is to lean on a pro. With the right team of experts, you can easily dodge these missteps.   Bottom Line The good news is you don’t have to deal with any of these headaches. Connect with a local real estate agent so you have a pro on your side who can help you avoid these costly mistakes.  

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