SWFL Real Estate Market Fueled by “Boomerang Buyers”

SWFL real estate

Southwest Florida is number two in the country for “boomerang buyers”, people who blew up their credit with foreclosures in the housing crash but now are starting to regain their homebuying abilities, according to a study recently release by RealtyTrac.

Between now and 2022, boomerangs will be 21.4 percent of the number of housing units here: potentially 79,216 home buyers, the Irvine, Calif.-based real estate data company said.

That’s second only to 26.3 percent for Las Vegas, which during the home price implosion that started in 2006 was often neck and neck with this area in foreclosure statistics.

Generally, the boomerangs are making wiser home-buying choices than they did in the past, although debt to ratio seems to be the largest issue for the group when attempting to procure a home loan.
Not all the foreclosures in this area will necessarily translate into new local homebuyers in the future. The first three years were heavily non-homesteaded and predominantly from out of state. Additional measures such as owner financed land have helped spur this type of buyer in the SWFL market.

The buyers and investment real estate seekers would buy three houses at a time with the plan of getting rich flipping them.
Area marketing insiders predict the boomerangs coming back will add a welcome depth to the local home-buying market. Right now the housing recovery has been fueled by baby boomers with good credit and lots of equity, but it’s been mainly the blue chip buyer who’s brought the market back from the abyss.

Now the market will begin to be fueled by people who were in their 20s or maybe early 30s in 2005, 2006, who got an easy loan and lost the house. They’ve got a willingness to buy again, but they’re afraid because of what happened.

They’ll eventually be followed by so-called millennials, people who are in their 20s now but haven’t embraced homeownership in great numbers yet. That won’t happen for awhile but in three to five years it could be quite a phenomenon.

To learn everything you need to know about the SWFL and Cape Coral land scene, contact a member of the Gratia Group at (239) 333-2221.

Newly listed NW Cape Plot: The Gratia Group Featured Lot of the Week

55 wilmingtonCape Coral land for sale is the Gratia Group Featured Lot of the Week. This newly listed lot is located at 55 Wilmington Parkway in sunny Cape Coral, FL 33993. A highly desired freshwater canal lot located in the Northwest Region of SWFL’s largest city is a ROI producing investment listed at only $12,000.

Cape Coral is experiencing a lot of appreciation in terms of prices in the market. As far as existing homes go, inventory is a little low. Realtors of Cape Coral lots have about a three to four month supply, which is great news for sellers because obviously they have a little more equity. They can turn around and sell. Land sales firms in Cape Coral are also seeing lessening inventories. The city has become a hot spot for investors from the north as well as foreign investors, making available lots for sale harder to find! Cape Coral is also seeing a lot of people who want to retire in the area.

Real estate always has healthy economy rebound and many experts don’t think it’s going to change. Cape Coral land is going to continue to see the prices increase. The area is still going to continue to see people coming and retiring and moving, and that creates markets in and of itself! To buy into the hottest area of Florida and get a great deal on property, Cape Coral land experts, Gratia Group, are waiting to help! Give us a call at (239) 333-2221 today!

How to Begin Investing in Real Estate

LandInvestmentsAn unusually long and harsh winter is delaying the start of the spring real estate and land market, but for the investment-minded, continued low interest rates and high demand for rentals appear to outline an opportunity especially when buying investment land.

Institutional investors and their buckets of cash have dominated many markets for the past several years, according to real estate data cruncher CoreLogic. But at the end of 2014, cash sales declined to a national average of 36.1 percent, down from 38.8 percent in November 2013. CoreLogic also reported that the foreclosure inventory declined 34 percent at the end of 2014. That means individual investors are starting to have a shot at lower-priced properties ripe for fixing up and renting and lower priced land investments for sale, real estate professionals say. If you are thinking of tiptoeing into investment real estate, you have two basic approaches.

Buying shares in a real estate investment trust. You can invest in a REIT, but doing so involves buying shares of a portfolio of properties. It’s really more like buying a stock or buying into a fund and a completely different animal from owning real estate directly.

There are three layers of value – the real estate itself, the management and cash flow that supports the trust, and the fund based on the trust. It’s a very different vehicle than buying real estate, but most of us can’t just go out and buy 1 percent of a skyscraper.

Adding a REIT to your portfolio can complement stock and bond funds, but you must be sure you understand how the real estate fund is designed and how its managers will likely extract value from the holdings. You can buy shares of REITs and real estate-based funds, but the performance of the funds is based on both cash flow and gains from occasionally selling properties – a very different scenario from the typical performance drivers of stock and bond funds.

Direct ownership. In a direct ownership you own your investment property. When you own real property as a direct ownership you can fall in line of thinking that your investment is easy money, that there’s not a lot of work, that tenants will pay on time and that pipes never leak. As we all know from real world experience, this is a dangerous way of thinking. Land is a bit of a different story and can end up being a wiser investment as it requires less general care, maintenance and overhead. Your land investment will never call at three in the morning to report an overflowing toilet and appreciates in value much faster than a real property investment.
To learn more about investing in land real estate contact an expert member of the Gratia Group at (239) 333-2221.

North Port Florida Investment- The Gratia Group Featured Lot of the Week

North Port Land for SaleNorth Port, FL is calling investors and home builders alike with the Gratia Group Featured Lot of the Week. A beautiful addition to any investment portfolio or the perfect place to build your dream home, the featured North Port lot is located at Mac Caughey Drive in North Port, FL 34287. Listed for only $12,500 this lot is priced to sell in comparison to others in the vicinity. Enjoy fishing on your freshwater canal, an added investment point. This is an ideal Florida investment land for sale for any portfolio!

North Port is known for its country lifestyle and excellent year-round climate. A haven for wildlife lovers, the city includes a large state forest within its boundaries. Warm Minerals Springs and Park is enjoyed by thousands of visitors on a yearly basis. The city features a large state forest inside the city limits which is enjoyed for recreational activities. North Port provides direct access to the scenic Myakka River which features a variety of wildlife and can be explored with guided tours. Scenic cruises are available on the Intercoastal Waterway. Don Pedro Island State Park is also a popular destination. Babcock Wildlife Management area is an excellent location for hiking, and bicycle riding and offers guided swamp buggy tours. The close by Gulf of Mexico is well known for beautiful beaches and deep sea fishing. The region is home to Port Charlotte Beach State Park and Stump Pass Beach State Park.

To learn more about investing in North Port land contact a member of the Gratia Group sales team at (239) 333-2221.

Why you Should Consider Land a Viable Investment Option

Blog Photo-Land InvestingToday’s world is filled with consumers with a fair amount of disposable income that aren’t aware of their investment options. They are guided by friends and family who are often misinformed too.  The US alone has seen a rise of over 29 percent in the disposable income generated in the country between 2007 and 2012.  What are the people doing with this income?  In the search for investment options, you usually encounter a number of risks. The popular maxim of investing is that the risk you take is directly proportional to the returns on your investment.

Perhaps the starting point for most investors is the low risk option of fixed deposits, mutual funds or commodities.  The more adventurous may gamble on the high risk-high return stock options.  However, if you’re an investor with a medium risk appetite looking to get high returns, you might want to consider buying land investments.  Historically, land has only gone up in terms of value.  Over the last five years, land has shown over 100 percent value appreciation in some areas.  Such growth is indicative of the great potential land holds for investors, yet many haven’t recognized this opportunity so far.

In terms of residential land on the outskirts of cities, you should take into account that already established residential areas may be hard to penetrate owing to few available spaces and high capital that is involved.  Nonetheless, if you do your research you could find spaces that are either in the process of developing or aren’t discovered yet but have the potential to grow.  These spaces provide the best opportunities in land investment.

There are some key indicators you should base your research on before buying real estate for investors including connectivity and access to basic amenities.  Some of the major deterrents to buying land in the past have been misconceptions associated with it.  People often go by the erroneous notion that land does not produce income or produces very little of it.  According to research, land was the investment that provided over 100 percent returns on investment between 2010 and 2013.

The difference with land as compared to other investments is that it is a tangible asset that allows you to adopt a few precautionary methods that reduce the investment risk from medium to low while still maintaining high returns over a long term.  The world is short of habitable land that needs to be able to develop, accommodate, expand, scale up, build, grow or upgrade.

Nonetheless, that’s only a part of the reason investing in land should be an element of your portfolio.  All of the three primary needs for life- food, clothing and shelter – are dependent on land, which provides the investor with a host of flexible options on getting the best out of your land investment.  You could dedicate it to organic farming, tap into a small business idea or build a home on it.  At the same time, it also gives you an option to leave it alone because in most cases it still continues to appreciate steadily and surely.

Despite its promise people are often discouraged from investing in land by their perception of the amount of capital required for it.  Firstly, it is more economical to buy vacant land than a developed property, a number of investors have invested in land using their savings and entirely avoiding dealing with loans and mortgages.  Moreover, if you can find the right places to invest and get in at the right time, the returns could be great.  The additional feature is that land can be a source of passive income over the long term, meaning it requires the customer to do little actively to gain returns.  In essence, land as an investment provides a wider range of business opportunities in a sector that rarely depreciates.

Mutual funds, equities, commodities, residential property and other options all make sense in certain scenarios and so does land.  It is a long-term option that will diversify and add volume to any investment portfolio.  It’s important not to jump the gun on land investment, only venture into it if you’re willing to consider it as a serious option and treat it as a business endeavor.

To learn more about land investments contact a member of the Gratia Group team at (239) 333-2221.