Tag Archives: ROI for buying land

01.20.14
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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.

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01.13.14
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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.

12.16.13
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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.

 

12.02.13
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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. 

11.11.13
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Gratia Group Acquires Zadooland.com and Adds Variety of New Land and Lots in Florida to Online Catalog

Land sales specialist, Gratia Group recently acquired Zadooland.com, allowing the firm to add a multitude of land parcels and available land for sale in Cape Coral and throughout Southwest Florida to their already robust catalog of lots and land for sale.

The acquisition of Zadooland.com has allowed Gratia Group the ability to offer more available land for sale to domestic and foreign investors including lots with direct Gulf of Mexico access, canal lots, freshwater lots and dry lots.  Many of the newly acquired lots are located in the most desirable areas of the Southwest Florida region with many lots available in close proximity to area schools, parks, shopping, dining and entertainment.

Southwest Florida is an up and coming area that is experiencing an uptrend in land sales after experiencing a down turn in the region during the housing crisis of 2008.  Unemployment rates are down and many national corporations including Hertz are relocating to the area.  Life in the region is easy going with access to some of the best fishing and beaches in Florida.

To learn more about Gratia Group and purchasing available land for sale in Florida contact a member of our expert land sales team at (239) 222-3331.

 

11.04.13
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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.

10.28.13
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It’s a Great Time to Buy Cape Coral Land and Lots

Home prices rose more slowly in September, reflecting the end of the summer selling season and higher mortgage rates, based on data released by market researcher CoreLogic.

Home prices in September were up 0.9 percent from August and 12.4 percent year over year and lots for sale in Florida were moving, CoreLogic says.

In addition to normal seasonality especially in cities like Cape Coral, the recent sharp rise in mortgage rates off their historic lows was a clear driver behind the slowdown.

The report anticipates “moderate gains” in home prices over the rest of the year, helped by the continued tight supply of homes and land for sale in many markets and the recent downward trend in interest rates.

Interest rates spiked sharply in May but have trended down since Sept. 18, when the Federal Reserve said it would not yet reduce its monthly purchases of government mortgage-backed securities and Treasury bonds, which have kept long-term interest rates low.

Other home price watchers have also documented slowing home price appreciation.

Regardless, the market of Florida real estate for sale continues to move and homes and lots sold faster in the third quarter of 2013 than in the previous half of the year and in year over year comparisons.

10.21.13
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CALLING ALL INVESTORS! The 9 Core Realty Featured Lot Package of the Week Includes over 200 Parcels of Florida Land for Sale!

Investors looking to invest in some hot Florida parcels are sure to love the 9 Core Realty Featured Lot Package of the Week which includes 238 lots throughout the state of Florida, concentrated in Southwest Florida.  This bulk land package offered by Zadooland.com includes the following Florida Lots for Sale:

  • Cape Coral, FL – 69 Land Lots
  • Charlotte County, FL – 86 Land Lots
  • Lehigh Acres, FL – 50 Land Lots
  • North Port, FL – 23 Land Lots
  • North Florida – 10 Land Lots

If you are an investor looking to invest in one of the most up and coming areas of the state of Florida, this package is sure to please.  With major corporations moving to SWFL including the relocation of Hertz Headquarters, the job market and economic growth is improving making it a great time to invest in the region.  To learn more about this lot package contact a member of the 9 Core Realty bulk land sales team at (239) 333-2221.

09.23.13
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Investors Spur Growth in the Florida Real Estate Market

Investors continue to steer Southwest Florida’s real estate market recovery with all-cash deals, which in many cases are squeezing traditional owner-occupiers out of the market.  Many of those purchases stem from foreign investors, who are gobbling up foreclosures and short sales at a ferocious pace for use as rentals, a phenomenon that first began elevating the market almost a year ago.

That investor thirst, coupled with tight lending restrictions, have made cash real estate transactions more prevalent in Southwest Florida than perhaps at any time before.  Cash represents a very large portion of current real estate sales, especially in many Florida markets.

Buyers closed on 2,091 homes in Lee, Collier and Charlotte counties in August, well outpacing numbers from a year ago.  Of those, buyers paid cash on 62 percent of the sales in Lee, 65 percent in Charlotte and a whopping 74 percent in Charlotte, all above the national average of 40 percent in August.  Those gains were led largely by bulk-investment buyers.

The recent influx of cash also has been fanned by baby boomers, who have regained enough equity to sell houses up north to finance Sunshine State retirements.  Bank-owned listings and short sales, which also tend to draw more cash offers than mortgage-backed buyers, both have risen steadily over the year, as well.

Some real estate consultants point out that this area always has carried a greater portion of cash buyers than most real estate markets, given the seasonality and dependence on retirees.  To learn more about the local market contact a member of the 9 Core Realty sales team at (239) 222-3331.

09.02.13
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Direct Ownership of Real Property for Foreign Investors

Foreign investors see Florida as a stable and secure place to invest in real estate and land and lots for sale.  Foreigners easily can purchase real property in the United States unlike some countries that make it difficult for foreigners to own real estate.  The weakening of the U.S. dollar and lower real property prices due to foreclosures make these investments even more attractive for foreign investors

Direct ownership of U.S. real property by a non-resident alien is probably the least complex structure and has some advantages.   A principle advantage is the long term income tax treatment currently at 15 percent.   Another advantage is possibly avoiding some unintended tax issues such as triple taxation that can occur when a U.S. parent company owns a foreign wholly owned subsidiary that disposes of U.S. real property held by the foreign corporation.   Another advantage is that the transaction is more transparent and less subject to IRS scrutiny.

Foreign investors looking to purchase real property that will become a future residence should consider direct ownership.   Section 121 personal residence gain exclusion rules apply to foreign investors, but additional rules must be met.   A foreign investor currently must live in the residence 50 percent of the time over the course of the two 12 month periods.   A foreign investor is also limited to investment real estate purchases of $300,000 or less.   The Housing Assistance Tax Act of 2008 has modified some of the rules for section 121 gain recognition by making it necessary in some cases to allocate some of the gains to periods of nonqualified use thereby reducing the deduction that might be received.

There are a number of disadvantages to direct ownership as well.  A direct owner will be required to file a U.S. income tax return because the real property creates the assumption of a business or trade.  Also a direct owner can be exposed to estate tax issues which can often times involve higher tax rates.  A direct owner will pay income tax at the time real property is disposed of, which may not necessarily be true under other structures.

When real property is disposed of it is treated as though the individual was in a trade or business under code section 897.  Section 897 rules do not affect residency status, so foreign real property holders need to review residency separately from their real property holdings.  Though real property is treated as a trade or business at disposal any rental income may be treated differently. To learn more contact a 9 Core Realty Representative here.