South Florida High Prices vs Low Interest rates

[Daniel K.]

I'm currently looking to purchase a SFH first as a primary residence to later rent out and move on to something else.

With the interest rates being as low as they are now, it almost seems silly not to take advantage of it. 

The issue is that $350k-$500k homes in Miami in a decent area are 1200SF homes 2BR/1BR built in 1950. Even outside of Miami, like Boca Raton or Parkland the home prices are so expensive that it doesn't make sense.

I just wanted to hear thoughts on the following:

Does it matter to overpay (i believe prices right now are too high) and take advantage of the low interest rates if you plan to hold long term?

If not, then the other option is not the buy something and if/when prices go down again to take advantage of low prices but the interest rates might be high again.

Finding a "bargain" as a non cash-buyer is almost impossible in this area.

Any thoughts are greatly appreciated.