Foreign Buyers aren’t Leaving Southwest Florida

Blog Photo- International Investors

Thousands of foreign buyers are buying investment land across the United States.  Florida is the number one region for sales, holding twenty-two percent of the foreign market.  According to the National Association of Realtors (NAR) who conducted a survey involving 4,000 real estate sales of foreign buyers, found that Florida’s greatly reduced prices created a good investment.

Foreign buyers purchased $92.2 billion for houses in 2014. Thirty percent of U.S. real estate agents now say they are working with offshore clients, NAR reported.

The realtors association estimates total international sales from Chinese buyers were $22 billion in the twelve months that just ended in March, 2015.  They report the Chinese are buying luxury homes in Southwest Florida because they are a bargain compared to the $1.5 million they might pay for a small condominium in Hong Kong.  They report that some are paying cash and buying sight unseen. Many are parents who are buying homes in the U.S. for their children to attend college.  Canadian buyers spent almost $14 billion and Mexican buyers spent approximately $4.5 billion in purchases.

Condos are sought after by seasonal and older buyers, causing a short supply of housing to purchase. While supplies are still shrinking, inventory fell by only 5% over the past year.  Supplies have been constraining sales, now they are easing.

NAR suggests that 2015 is starting strong.  Closed sales in all price categories above $300,000 increased in 2014 by double digits, with the $2 million and above price category experiencing the highest increase. The NAR figures indicate that the SWFL regions market prices continue to rise as inventory stays low.  Properties, especially near the beach, are selling faster and closer to the sellers’ asking price.

If you are an international looking to buying land in Florida, contact the state’s premier land investment firm, 9 Core Realty at (239) 333-2221.

 

9 Core Realty Featured Lot of the Week: Lehigh Acres Parcel Perfect for Investors & Developers

Lakeridge Lehigh AcresThis week’s 9 Core Realty Featured Lot takes us just east of Fort Myers, to Lehigh Acres, Florida and a huge parcel of undeveloped land.  Located at 212 Lakeridge Blvd. Lehigh Acres, FL 33972 it is close to golf courses, shopping and restaurants and is a perfect Lehigh Acres Land lot for investors & developers.  Listed for the extremely low price of $29,000 and being located in such a desirable area of Lehigh Acres, this lot is expected to sell quickly.

Lehigh Acres is a diverse community of approximately 80,000 residents.  Just 12 miles east of Fort Myers, Lehigh Acres boasts ponds, lakes and canals.  With 175 miles of canals and 16 well-stocked lakes, Lehigh Acres is a perfect place for both fishing enthusiasts and beginners alike to call home.  For a change of pace, the Gulf of Mexico and its nearby barrier islands provide spectacular saltwater fishing opportunities, with bountiful grouper, mackerel, redfish, snapper, snook and trout.  Lehigh Acres’ is also home to four championship golf courses.  With parks, lakes, tennis, and safe roads for bicycling or walking, this charming suburban enclave is the ideal community for families or seniors seeking an affordable and laid-back lifestyle.

To learn more about this lucrative Lehigh Acres lot for investment purposes contact a member of the 9 Core Realty team at (239) 333-2221.

Lee County Real Estate Market is Hot, Hot, Hot!

Lee County Florida LandHousing indicators in Lee County Florida including Cape Coral Land purchases and nationally look good for the most part as does the overall economy, according to experts.  In Lee County, home prices are going up and stabilizing nearly across the board and in some cases have surpassed peak 2005 levels.

A lot of that increase in value has to do with where a property is located.  Neighborhoods broken down by ZIP codes seem to make a lot more sense than when it’s broken down by price range.  It’s about location, not price range, it’s how close you are to the beach, which really drives your value. This rings true also when purchasing investment real estate.

Condos haven’t seen as large a jump in price as single- family homes, but there are a number of reasons for that.  There have been financing challenges in the condo market including foreclosures and unpaid fees and that may have kept that condo market depressed over the past 12-24 months.  As we see home prices stabilize, the condo market will start to grow.

Statewide, the housing market has rebounded nicely from recession lows and economic indicators, which are tied closely to the real estate market, look positive, particularly for the wealthy.  There is a very close correlation, between million-dollar-plus home sales in Florida and the Dow (Dow Jones Industrial Average), so it’s kind of an indicator or where home sales are going to do.

In addition, transportation and infrastructure investments in Southwest Florida could help spur economic development, leading to a stronger local economy and higher home sale prices.

Nationally, the overall economic indicators look good, but the housing market has a few weak spots.  Wage stagnation, the unavailability of credit for subprime borrowers and a lack of lower-income housing are depressing the market.

A bright spot for Florida is the region’s favorable location and constant population growth.  Population growth is Florida’s saving grace.  People just want to be here and that’s what’s driving the real estate market in the region.

To learn more about the current state of the Lee County real estate market, contact a member of the 9 Core Realty team at (239) 333-2221.

 

 

 

Popular Rotonda West- The 9 Core Realty Featured Lot of the Week

33 Kingfisher Drive Rotonda West, FL 33946The popular Rotonda West development in SWFL, is the site of this week’s 9 Core Realty Featured Lot of the Week!  The property is located at 33 Kingfisher Drive Rotonda West, FL 33946 is listed at only $4,500.

Rotonda West contains 8,000 home sites with over 5,000 homes completed and is experiencing rapid growth and features the hottest Florida land sales.  Residents are predominantly full-time homeowners and their families, as well as tenants and those who winter in the community.  Many investors have found common ground in the city, building up portfolios through many great deals.

Thirty miles of picturesque canals, lakes and ponds wind through the community and offer fishing and boating opportunities for its residents.  Many exotic and beautiful birds call Rotonda West home, as it is a designated Bird Sanctuary.  Nearby recreation facilities, beaches, theaters, sporting events, and fine restaurants are keep residents of Rotonda West busy!

To learn more about this priced to sell 9 Core Realty Featured Lot of the Week and how to purchase land, contact a member of the 9 Core Realty team at (239) 333-2221.

SWFL- A Popular Choice Among International Real Estate Investors

SWFL Home

Naples was the 10th most popular city in April for searches by international real estate for investors, according to a survey recently released by Realtor.com International. With a population of 20,000, the city is David vs. Goliath on the list, which except for Naples consists of large metro areas: No. 1 is New York, followed by Los Angeles, Miami, Orlando and Las Vegas.

Among Canadians, Naples is even higher on the wish list: fifth, after Fort Lauderdale, Las Vegas, Los Angeles and Miami. Naples and the rest of Southwest Florida have always been favored destinations for Canadians who want to escape that country’s brutal winters. Naples’ high prices and elite reputation may play a role in the popularity of that city in particular.

Among foreigners who actually buy Florida land investments and homes , Canadians are by far the largest group: 8 percent of Lee County’s properties sold each year are bought by foreigners – three-quarters of them Canadian. In Collier, of the 6 percent of homes foreign owned, Canadians make up two-thirds.

Canada’s the only country that has Naples in its top five, but Miami is on most of the other countries surveyed by Realtor.com. That’s especially true of South American and Caribbean buyers. With volatile economies in their homelands, South Florida investment real estate is considered a secure place to invest one’s money.

To learn more about the SWFL real estate scene or to view any of our SWFL land investments, contact a member of the 9 Core Realty Team 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.