Purchasing Land for Long-Term Investment

Vacant land can be a great alternative investment to other risky investment scenarios such as stocks and bonds.  For investors that purchase land as a long-term investment, buying land in a growing area is as vital as the investment land itself.

Studying the direction of growth of a city or town highlights areas that have become populated over a specific timeframe and where this activity has been focused.  This information is beneficial to landowners and potential land investors for a multitude of reasons.

Successful long-term land investors are picky when it comes to where they purchase real estate for investors.  They study area growth and development closely.  The more developed an area becomes, the more profitable and desirable their property will be.  Highly developed areas attract more interest, whether it is for developing businesses or residential neighborhoods.

Eventually, businesses and neighborhoods will expand throughout the majority of the town center and land for sale will be scarce.  Due to its popular location and scarcity, land that remains vacant throughout the growth of an area will become more valuable than it was in previous years.  This increases potential profit if and when a long-term investor sells creating a potential for high return on their original investment on the land.

To learn more about long term land investing, contact a member of the Gratia Group Land Investment Team at (239) 333-2221.

 

 

 

 

 

Gratia Group Featured Home Site of the Week: 1422 Mohawk Pkwy, Cape Coral, FL

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The Gratia Group Featured Home Site of the Week is perfect for boat enthusiasts.  This beautiful lot located at 1433 Mohawk Parkway in Cape Coral, FL is located directly on a canal with Gulf of Mexico access.  Save time and money when you purchase this lot as it includes an existing seawall.  Just build your dock and bring your boat!

Listed at only $81,000, this lot is generously priced for the popular southwest area of Cape Coral.  Lots for sale in Cape Coral’s southwest region are becoming increasingly difficult to locate, so this lot is sure to sell fast.  The area is known for its family oriented feel and is located close to the public library, Cape Coral Yacht Club, shopping and nightlife.

To learn more about the Gratia Group Featured Home Site of the Week or any of of other lots for sale contact an expert member of the Gratia Group land sales team at (239) 333-2221.

Short Term vs. Long Term Land Investments

Investors looking to build a robust, dynamic portfolio of low-risk, high yield investments should consider buying land investments.  When deciding to purchase land an investor should ask themselves a few questions.  First, are you looking for a quick profit or do you want to make improvements on and use this property over several years?  Perhaps this is simply a moneymaking investment or maybe an investment for you and your family’s future?  Let’s look into the differences between investing in land for the short term versus the long term.

Purchasing investment land in the short term is less common and a little trickier than a long term investment, although it is possible. The pros to a quick flip are:

1) Cash in hand, and who doesn’t like that?

2) Using the money to make more investments (preferably in more land!).

3) Paying very little in property taxes, depending on how long the property is in your name.

Long term land investments are much more commonplace.  Some pros of holding onto your land investment include:

1) Securing the future of your family.  Land is a stable investment and can be passed down to future generations of family.

2) Using the land as a cash generator.  Some examples of ways to make money with your land are a vacation rental or agriculture (crops and/or livestock).

3) If you wait longer to sell the land, it’s likely the value will have increased even more than if you sold in the short term.  You will see the most increase in value if a big company offering many jobs has moved into the area or if the population has increased significantly over time.

4) Being able to make improvements on the land that will increase the value significantly.  The improvements can be simple, such as having the land surveyed, or more involved such as digging a well or building a house.

To purchase land for investment purposes contact a member of the Gratia Group Land Sales Team at (239) 333-2221.  Our large selection of Florida land for sale is waiting to be added to your investment portfolio!

Gratia Group Featured Lot of the Week: Freshwater 16 lot Package in Cape Coral

Investors, are you looking to make a splash in the Cape Coral real estate scene?  The Gratia Group Featured Lot of the Week is just for you!  This land package features 16 gorgeous, ready to build lots in sunny, tropical Cape Coral, Florida.  These Cape Coral lots for sale are situated on a wide, freshwater canal.  Priced at $10-12k below market value, this lot package is priced to sell and must be sold as a package with the buyer purchasing all available lots for sale.

Come invest in one of the hottest areas of Florida, Lee County.  The region is best known for world-class fishing, beaches and a warm sunny tropical lifestyle.  Cape Coral is a large family oriented community just minutes away from Fort Myers that offers beautiful parks and a wonderful school system.

To learn more about the Gratia Group Featured Lot of the Week contact a member of the Gratia Group Land Sales Team at (239) 333-2221.

Gratia Group Featured Plots of the Week: HUGE 22 Lot Package for Investors

GG PhotoAre you an investors looking to break into the SWFL real estate investment scene or are you an expert investor in the regions robust investment market?  If, so the Gratia Group  Featured Plots of the Week will make you jump to buy!  The Featured Plots this week are an incredible package of 22 ready to build lots for sale in Florida’s Charlotte and Sarasota Counties.  These two counties are currently experiencing the highest rate of growth in all of SWFL, making investment purchase ideal.

With over 28 miles of white sand beaches, over 20 world class golf courses, access to some of the best fishing and boating opportunities in Florida, over 70 parks, nature preserves & recreation areas; Sarasota and Charlotte Counties are perfect places to call home making your investment property apt to be sold quickly and at a high ROI.

Act fast!  With an average lot price of only $3, 940, builders purchasing at a rapid rate in both counties and prices slated to rise in February 2014, the time for investors to get in on the Gratia Group Featured Plots of the Week is running out!  To take advantage on these inexpensive Florida lots for sale, contact a member of the Gratia Group land sales team at (239) 333-2221.

US Land Market is Win-Win Investment Choice for Canadian Investors

Millions of Americans have lost their homes, jobs and retirement funds throughout a dire financial crisis including the vast breakdown of the housing market, which has gripped the nation since around 2007.  Many financial analysts feel that the housing market in the areas hardest hit by the real estate market breakdown like Florida, California and Nevada, has finally hit its rock bottom.  This is great news for Canadian investors looking to purchase investment real estate and investment land for sale as parcels are being sold well below fair market value.

Another sign pointing towards investment in the US real estate market is the economic conditions in Canada versus the US.  The Canadian dollar remains incredibly strong against the US dollar and given the current economic forecast for both nations and foreign exchanges, any investment in the US market will create a strong return on investment.

If you take both of these facts into consideration, the current state of the US real estate market & economy and the value of the Canadian dollar to the US dollar, buying a beautiful plot of real estate at unprecedentedly low prices is a win-win situation for any Canadian investor.

To learn more about purchasing a piece of paradise, land for sale in Florida, contact a member of the Gratia Group land sales team at (239) 333-2221.

Southwest Florida 2014 Real Estate Trends and Predictions

Positive growth in Southwest Florida’s housing market is expected to continue into 2014.  Like other housing markets hit hard by the downturn of the housing market and recession, Southwest Florida is now experiencing a rapid recovery.

According to the latest Market Trends statistical report, home permits up 61% in Lee, Collier and Charlotte Counties.  Mortgage interest rates are low and foreclosure rates are on the decline.

A low volume of existing homes available for sale coupled with increased demand is causing home prices to increase.  It all seems to be part of a positive trend, but that there’s also concern and confusion about the market as we look toward 2014.

Along with the great booming news we’ve experienced this year, in Southwest Florida in 2003, 04 and 05 that led up to a significant real estate bust.  While we’re experiencing these great results and everyone’s getting back to work and permits are being pulled and homebuyers are buyer, we also have to look at, ‘Is it too good to be true?’  The main question that we get is ‘Is this sustainable?  Are we in another run up?’

The last boom-bust cycle is still fresh in people’s minds and it could be a good thing with buyers making more prudent purchases this time around.

As 2014 approaches, market watchers are concerned about what could happen if home prices continue to rise.  A home that two years ago, just for rough numbers, was $250,000; that home today is approaching over $300,000 because of cost of materials, land prices going up, greed and builder’s profit margins.

All of the sudden you start knocking off a lot of buyers when you raise that much including adding interest rates which will increase, so we start chunking off a big segment of our market as these prices escalate so high.

In addition to concerns about the local housing market’s sustainability, the construction industry is facing a workforce shortage. Builders are fighting and competing and stealing each other’s subcontractors.

One of the reasons why we’re not getting many of the laborers that we did before is a lot of those people went ahead and moved to the center portion of the country; the energy producing states of Texas, Oklahoma and up into North Dakota.  So those people are in those particular markets which are much more stable and didn’t go ahead and have the boom-bust that we saw in Florida.  And they’re sitting down and saying, ‘Well, I could move back to Florida, but then again I’m going to have this boom-bust or I could stay in these energy producing states which is a steady, constant income.’

Even with all of the positive growth, eight out of the ten cities with the highest foreclosure rates in the country are currently in Florida.

To learn more about the real estate market in Southwest Florida, buying property in Cape Coral or buying Port Charlotte land, contact a member of the Gratia Group land sales team at (239) 333-2221.

Land Trusts 101

There are only six states that have an actual Land Trust statute (or case law recognition) and they are; Illinois, Indiana, South Dakota, Florida, Virginia and Hawaii.  Does this mean if you do not live in one of these states (and own land in the same state) that you cannot form a Land Trust?  Absolutely not!

Does Your State Have Land Trusts?

Most states recognize the validity of a Land Trust and allow its citizens to form a Land Trust to hold title to property in their state. This is typically done under the laws of the state where you live and own land.

For example, California does not have a specific Land Trust statute but you can still form a California Land Trust to hold title to California real estate by stating in your Trust Agreement that the trust is formed under the laws of the State of California.

Why Should Investors Even Care About Land Trusts?

Why should you care if you can form a Land Trust to hold title to your investment real estate (especially when advisors are recommending an LLC)? First, understand that titling multiple parcels of real estate in a single entity (be it a Land Trust, LLC or Corporation) is just plain dumb!

This practice creates a connection between each land trust.

If you agree with the philosophy of titling property in separate entities for asset protection (to insulate each property from the others), this leaves you with the question of which entity to use (LLC, Corporation or Land Trust)?  Logic tells you that setting up a separate LLC or Corporation to hold title to each of your properties would be cost prohibitive (let alone, time consuming and frustrating).

Putting each property into a separate Land Trust is easy to do and costs NOTHING!  Furthermore, the Land Trust provides privacy of ownership unlike other entities.

To learn more about Land Trusts contact a member of the professional Land Sales Team at Gratia Group by calling (239) 333-2221.

 

Buying Land for Home Building vs. Investments

People generally buy land for two reasons; to build a home for their family or for investment purposes.  This week’s Gratia Group Land Investor Blog highlights the differences between these two main types of land buyers.

Buyers of land for the purpose of building a home actually require a bit more work than buying for investment purposes.  Many investors will never even set foot on their purchased land, while buyers looking for a home lot will be buying a piece of land that many will reside on for the rest of their lives. 

Check with local authorities (city, county and state) to determine zoning ordinances and whether you can build the type of home you want before committing to buying available land for sale.  Ask about future zoning, whether there are plans to put in shopping centers or airports, or to change nearby land uses that could also devalue your land and cause future headaches.

Buyers that are looking for purchase land or lots for sale for investment purchases will want to look for parcels that are being sold low prices in communities and areas that are currently seeing an increase in their local real estate markets.  Look for properties that will increase ROI when you choose to sell in the future.  Consider buying parcel packages that include 3-5 lots in hot areas. 

To learn more about purchasing land for home building or investment purposes contact a member of the Gratia Group land sales team at (239) 333-2221. 

Diversify your Investment portfolio with Land Investments

With over 35% of investors admitting that land represents 1-20% of their current investment portfolio, recent land ownership surveys conducted show that land continues to be a solid investment for novice and seasoned investors alike.  Even better news, the survey stated that 21.3% of investor’s portfolios contain 21-40% land investments.

Land is a tangible investment that appreciates in value and in many areas is in limited supply making it a wise choice for investors looking to build an investment portfolio that continually grows and greats profit and ROI.  Considered a safe, long term investment the real estate market that comprises land is steadier that the real property market.  Investment properties that create a rental income require maintenance, property management and finding a worthy tenant for your property while land investments require little to none of these requirements.

To learn more about investing in land and the many benefits of adding land to your investment portfolio, contact a member of the Gratia Land Group Sales Team at (239) 333-2221.