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.
 

Lee County Home and Land Prices Jump 19%

Tight inventory in February continued to contribute to the ongoing rise in Lee County median home and home site prices according to February 2014 sales statics recently released by the Realtor Association of Greater Fort Myers and the Beach.  The number of new listings (245) in February was 11.8 percent below January, but still showed a strong month in year over year comparisons.  The median price for single-family homes in February was $185,000, a 19.4 percent increase compared with the $155,000 median price in February 2013 and an increase of 27.3 percent (or $5,050) from January.  The median price of condos increased 10.7 percent to $155,000 in February compared with February 2013.

As prices continue to rise and inventory remains tight, desirable homes are selling quickly.  It is anticipated that this will be the case through April, as seasonal visitors are making the decision to purchase, which is challenging to Cape Coral and other Lee County residents, especially first time buyers, facing higher prices, rising mortgage rates and tighter credit.

Single-family homes of all types spent a median 52 days on the market before coming under contract in February and the average home sold for 93 percent of its listing price.  In February 2013, those numbers were 57 days and 93 percent, respectively.

Thinking of purchasing property in Cape Coral, Fort Myers or elsewhere in Lee County?  Gratia Group can help!  Give us a call at (239) 333-2221 to get your property search started today!

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

GG-Mohawk

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!

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.

Gratia Group Featured Lot of the Week: 4101 SW 14th Place, Cape Coral, FL 33914

Ring in the New Year with a new investment!  The Gratia Group Featured Lot of the Week is a wise investment choice for local or foreign investors in 2014.  The beautiful, sunny lot is located at 4101 SW 14th Place, Cape Coral, FL 33914 in the highly desirable Southwest Cape Coral neighborhood, just blocks from the bustling Cape Coral Parkway.

This lot is located in a highly maintained area of upscale homes with impeccable landscaping, golf courses and more, making it an easy land parcel to sell in the future for a high ROI if you are looking for investment land for sale.  Additionally, the lot has been previously cleared and is ready for building.

Own a piece of tropical paradise when you purchase this lot.  Located just minutes from white sand beaches and the Gulf of Mexico, this parcel epitomizes “Florida Living.”  To learn more about this beautiful Cape Coral lot for sale or other plots available throughout Southwest Florida, contact the region’s land sale expert, Gratia Group at (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.