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.
 

Huge Lot for Low Price- Gratia Group Featured Lot of the Week

Inverness Lot

The Gratia Group Featured Lot of the Week is a large 9,600 square foot lot located in historic Inverness, Florida. This perfect Florida land investment is located at 3913 E Walker Street Inverness, Fl 34453. Listed for only $2500.00 this lot is priced to sell to a land investor, developer or those seeking the perfect Florida home site in paradise.

Race fans will love Inverness, home of the Citrus County Speedway and its figure-eight race course. The Citrus County city, which is about 40 miles southwest of Ocala, also offers a golf and country club, as well as Fort Cooper State Park. Bordered by forests and lakes, the area’s natural resources have been protected and managed to provide a wealth of outdoor opportunities for residents to enjoy.

To learn more about the Gratia Group Featured Lot of the Week or any of investment land plots or Florida home sites for sale, contact a member of the Gratia Group team at (239) 333-2221.

Foreclosure Hangover in SWFL? Study Says “Yes”

Blog Photo

Though both the rate and number of foreclosure filings in Southwest Florida have dropped dramatically since the recession, a recent report shows the the market of property Cape Coral still suffers its aftereffects.

While the year-end report by California-based RealtyTrac showed both Naples-Marco Island and Cape Coral-Fort Myers had improving metrics since the foreclosure crisis reached its regional peak in 2009, neither area is bouncing back as quite as quickly as the country as a whole, though their performance outpaces the state average.

The report showed that in the Naples-Marco Island metropolitan statistical area, the number of foreclosure filings fell to 1.06 percent of all housing units, or 2,092 homes, in 2014. In 2009, 6.38 percent of all housing units, or 12,251 homes, were in some stage of foreclosure.

While foreclosures usually are found in the lower end of the market, currently they’re found in all price points. But because the percentage of homes in foreclosure is much smaller than it was during the recession, the banks and other institutions that own them can command market prices.

In Cape Coral-Fort Myers, 1.72 percent of all homes (including lots and land for sale), or 6,393 units, were in foreclosure in 2014. Five years earlier, 11.87 percent of all housing units, or 42,734 homes, had foreclosure filings. While the percentage of homes in foreclosure is relatively small, both Naples-Marco Island and Cape Coral-Fort Myers have a greater percentage in foreclosure than the country as a whole.

Nationally, only .85 percent of all housing units, or about 1.1 million homes, had foreclosure filings last year. That’s compared with 2.21 percent of all housing units, representing roughly 2.8 million homes, in 2009. Looked at another way, one in 118 housing units in the United States was in foreclosure last year, RealtyTrac said. By comparison, Southwest Florida fared worse. Out of 212 metro areas the company tracks nationwide, Cape Coral-Fort Myers ranked 15th, with one out of 58 housing units in foreclosure.

That’s because banks, which had been holding out for higher home prices before selling the homes they had repossessed, are finally clearing out their inventories. Naples-Marco Island saw one in 94 units in foreclosure, and was 49th on the list of metro areas nationwide. Naples’ numbers are lower because there was never as much backlog of homes as there was in Cape Coral-Fort Myers.

While both metro areas ranked relatively high nationally in terms of foreclosure rates, they ranked low compared to other places in the state. Naples-Marco Island had the lowest foreclosure rate of all the metro areas listed in Florida. But Florida tops all other states in terms of foreclosure rates, with one out of every 44 housing units in foreclosure, or 206,247 homes. That’s 2.3 percent of the roughly 9 million housing units in the state. In 2009, Florida had 516,711 foreclosure filings, representing 5.93 percent of the housing stock.

While overall, foreclosures still haven’t reached historically normal levels, the overall picture is improving. Florida’s foreclosure filings were down by 24 percent in 2014 from 2013.

Nationally, they dropped 18 percent. Over the same period, Naples-Marco Island’s filings fell 44 percent and Cape Coral-Fort Myers dropped 20 percent. The shrinking numbers are signs that rapidly rising home prices are making it easier for some owners to avoid foreclosure.

To learn more about the current state of real estate in the SWFL region, contact an expert member of the Gratia Group team at (239) 333-2221.

Researching Land in Florida for Sale

Florida Land for Sale

Getting ready to buy property isn’t as simple and straightforward as buying groceries.  For starters, it’s typically not purchased regularly.  Because of this, there are many complexities and questions that arise.

When invest in Florida land sales, you’re investing your money, time and future.  All of these are very important.  To help save you from stress and frustration,  we’ve compiled some helpful hints for how to research land for sale before you buy.

Questions To Ask Yourself

There are several questions someone must consider before they buy.  These should include:

  • Where do I want my property to be?
  • What purpose do I want this property to serve?
  • How much am I willing to spend?
  • What qualities do I want?

By compiling a list of your expectations or desires, you will be able to focus on what the important factors are to you.  This will assist you significantly as you create a good, short list of potential properties.

If You Want to Build On Your Property

If your goal is to build a house on the newly-purchased vacant lot, there are a few things to consider when conducting your research.  Most importantly, what is the zoning code for this property?  County offices record all properties, and every county differs in zoning restrictions related to FL land.  Some counties have strict size rules, only allowing construction of a building if the property is of certain acreage.  Other times, you might be able to build a single-family dwelling, but not a commercial building, or vice versa.

Installing Power, Water and Sewage

Not every property has direct access to power lines.  There are off-the-grid properties that might be too far away to set up water and sewage, preventing you from either building or living on the property.

Counties Are Your Friend

As you research lots you will find that the county the property is located in will be your best bet for the most up-to-date and accurate information regarding the Florida lot for sale.  There are many different offices within the county.  For questions pertaining to building or making any improvements to your land, the best department to contact is Planning and Zoning.  For general questions about the property (i.e. its history of owners, who currently holds title to it, etc.) the Recorder’s office will be your best bet. Lastly, questions about property taxes can be answered by the Tax Assessor’s office.

If you have general regarding land, contact an expert member of the Gratia Group land team at (239) 333-2221.  We love to share our vast knowledge of the Florida land market and are a great resource for beginner investors looking to break into the Florida land scene!

 

Gratia Group Featured Lot of The Week: Great Location in Port Charlotte, Florida

Avery Road PC FL
This week Gratia Group is excited to announce a newly listed Featured Lot of the Week, a great deal in Port Charlotte, Fl.  Located at 15505 Avery Road, Port Charlotte, FL 33981 this undeveloped Florida lot for sale is a perfect find for an investor wanting to build their real estate portfolio with great investment land parcels.  Listed at only $10,900, this lot is sure to sell fast.

The zone on the Gulf of Mexico from Venice to Port Charlotte is world famous for its fishing, beaches and beautiful climate.  Now it is also one of the best places in the US to find profitable land and waterfront property investment opportunities.  The real estate market meltdown is over and land prices have started to rise quickly after reaching bargain levels across the board, usually down 60% to 90% since August 2005.  Port Charlotte land prices are moving up and home inventories very low, at seller’s market levels.

To learn more about the Gratia Group Featured Lot of the Week contact an expert member of the Gratia Group sales team at (239) 333-2221.

NW Cape Coral Paradise- The Gratia Group Featured Lot of the Week

4119 NW 19TH Ter Cape Coral 33993

Gratia Group, Florida land sales expert has released a new Featured Lot of the Week.  Listed for only $19,900, the Featured Lot of the Week would be a great addition to any investment portfolio or the perfect lot to use for a Florida dream home site.  Located at 4119 NW 19th Terrace in sunny Cape Coral, Fl (33993) this lot is located in a quiet neighborhood with many available lots for sale.

Investors have found great success in Cape Coral, particularly the northern section of the largest city in Southwest Florida.  A hot spot for boaters, golfers, fishing enthusiasts and those that love the natural beauty of South Florida, Cape Coral is home to a large population of foreign investors.  Don’t miss out on owning a piece of paradise!

Contact Gratia Group today to find out about these ROI producing Cape Coral lots or others in our land catalog by calling a member of the expert land team at (239) 333-2221.

Big Living on a Triple Lot in NW Cape coral: The Gratia Group Featured Lot of the Week

2341 NW 39TH AVE CAPE CORAL FL 33993

The Gratia Group Featured Lot of the Week is a win for both investors and those looking for the perfect Florida home site.  A huge, triple lot with over 15,000 square feet this lot can be subdivided by an investor for maximum ROI potential or could be the perfect lot to build your Florida dream home!  Located at 2341 NW 39th Ave. in beautiful Cape Coral, FL 33993 this lot includes highly sought after Gulf Access.  Listed for only $69,800.00, this huge lot is sure to sell fast.

Cape Coral is the largest city in Southwest Florida.  The northwest region of Cape Coral is still an up and coming area and it’s residents enjoy a quieter, more laid back, country lifestyle than residents in the southern sections of town.  This doesn’t mean that the area is just rural lots and acerage for sale!  Many shopping centers, schools, parks and businesses are spread throughout the Northwest section of “The Cape”.

To learn more about this Gratia Group Featured Lot of the Week or any of our beautiful SWFL lots, contact a member of the Gratia Group team at (239) 333-2221.