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A very good question and something many buyers are asking right now. Let me give you a Brokers opinion that has been in the industry for many years.

First you must ask yourself what are your goals and how long do you intend on owning the property?

1. Are you looking to invest and sit/speculate on an area going commercial, redeveloping or developing?
2. Do you want to buy a rental property and have someone else pay down your mortgage and use the depreciation and a tax shelter?
3. Are you looking to live there as your primary residence?

Let’s look at #1, buying as speculative and to sitting on it. Most often this would be land or a home in an area that looks like it may go commercial or what we call redeveloped, redevelopment happens when an area of town that is usually older and has lower priced homes begins to renew and attract people who want higher end or more expensive homes. If you do your homework or hire a great agent who will do your homework for you and really knows how to do so, great idea. You can buy and lease it out so someone is paying down a mortgage or at least the taxes and insurance while you wait. You can also use it as a tax shelter.

Looking at #2, buy rental property and have someone else pay your mortgage down. One of the ultimate ways to create wealth. The trick here is to find a home you can take a mortgage out on and the total payment with taxes and insurance is at or under the monthly rental payment the market will allow in the area. You generally want to look at lower priced homes unless you are looking at vacation areas and then you may be able to get more monthly payments with a seasonal furnished rental. Also look at the areas you are buying in, look at things like SAT scores and is the neighborhood well kept and clean. Also look for counties adding jobs as these are a few factors that may enhance the value of your property down the road.

#3 always a winner. If you are buying for you and know you will live there at least the next 7 to 10 years as the average homeowner lives in a home for 7 years, then with the tax shelter who can go wrong. Rental can be great but unless you sign a long lease, you may be forced to move every year and that can add to the cost of your monthly lease as moving is not cheap, unless you have minimal furniture and boxes you can load yourself in a small truck. Owning your own home, you can change the paint color if you want and much more because it is your home not someone else’s. Not to mention a nasty landlord. They are out there; believe me those who do not care what condition the home is you live in or if it is safe.

Let's look at the market in Florida and many other areas of the country now. Will home prices continue to fall? No one can tell you for sure what will happen as I have seen too many say it will pick up or is picking up only to see a few months later a decline in prices and sales. I will not insult your intelligence or mine, I am not an economist nor do I have a back ground in economics as many real estate brokers do not. I do however know what I hear and see in the market place, due to our lower commission and fees, we list many other real estate agents and brokers’ homes here in Florida and I have the opportunity to hear from them what their market is like.

One thing Florida has going for it is the fact it is a place people want to live and vacation. Florida metropolitan areas dominated the Milken Institute/Greenstreet Partners 2007 Best Performing Cities Index in the article Florida Metros Again Score Well in Best Performing Cities Index; Places Creating Jobs in U.S. Change Due to Tech Rebound, Energy Activity, Trade, Ocala, Orlando-Kissimmee and Naples-Marco Island, ranked at #1, #5 and #6, respectively, were three of the top six cities where America’s jobs are being created and sustained. Ten other Florida metro areas rounded up the top 50. What did we say about looking for areas of job growth? No hurricane has kept people away from a beautiful paradise with white sandy beaches and blue water, just look at the many movie and television stars who own homes here not to mention the fact many Florida cities have more millionaires and billionaires per capita than many other states see this New York Times Article. The fact the dollar has dropped is making property in the US a bargain to those in Europe, the United Kingdom and elsewhere. There has been a slight upward swing in vacation homes sales in the last month or two and quiet a few sales have been all cash. This tells me the Florida market will continue to grow this evidenced by the continued growth between Tampa and Naples. Also with the new international airport being built in Bay county see this article Bay County Airport. Many see the airport bringing new jobs and people to North West Florida due to the lower airfares a larger airport generally can offer as well as lower transportation costs for goods bringing new job growth. The North West Florida area still has some of the most beautiful beaches in the world and that always keeps people coming for more. The west coast of Florida also offers world class fishing and is far less populated and crowed than the east coat of Florida making it the ideal place for growth. Florida has 14 seaports and many think Florida economy may be even more so powered by its ports.

To summarize, now is a great time to buy depending on your circumstance if you are looking to create wealth, a tax shelter or plan on staying put for 7-10 years or more with the interest rates low and a buyers market giving you much more to choose from you may just get that perfect home you have dreamed of. If you are looking to flip those days are gone, unless you can get a home for pennies on the dollar with minimal work needed, forget it. If you are planning to live there only a year or two I would rent as no ne can tell you exactly what is going to happen. My personal opinion is nothing will really change unless the people or Florida get out and vote to amend the save our homes bill see this Florida Tax Watch article on January 29, 2008 and the bill passes thus rolling back property taxes as long as the counties do not raise them so the decrease is negligible or until after the 2008 election for president and that will depend on who wins and what they plan and begin to change. Florida has proven to continue its job growth and e-commerce fro the state which tells me it will continue to prosper and grow.

Hope this helps and remember we have many great buyer agent here to help anyone who wants more information about the perfect dream home or good investment.

By Cary Collier and Florida Real Estate Broker with Collier & Associates Real Estate, LLC. www.Collier-Associates.com/CollierBlog