Many pure investors remain committed to real estate as their first choice of investments through all economic cycles for the rental income and the appreciation. Certainly, given a smart choice for the property purchase, real estate is a safe and solid place to park your money even if it’s not an income producing rental property. Real estate investing is often the “go-to” place as a hedge against inflation for all types of buyers. Choosing wisely is always important no matter the ups and downs of a local real estate market.
As we experience market corrections in Naples and Bonita Springs, remember that our market is quite different from anywhere else. The unique characteristics of Naples, in particular, offer investors protection going forward. The appeal of Southwest Florida begins with the state being tax friendly, great weather year around, the Gulf of Mexico and an active lifestyle. Naples and Bonita Springs adds to the mix with culture, outstanding restaurants, world-class shopping, a special blend of sophistication in a beach town, and a thriving economy. The migration to our area is not going to stop – people approaching retirement age, a huge population of remote workers, job opportunities, a more popular vacation destination than ever, pure investors, and people seeking a lifestyle in unique place within a “free” state.
Let’s talk about “choosing wisely” and how that applies specifically to Naples and nearby communities. In general, you cannot invest your money any better than a single-family home west of Route 41 (Tamiami Trail). A quick glance at a map will tell you that there is a narrow strip of land between Route 41 and the Gulf of Mexico that is prime real estate. Digging deeper, there are neighborhoods and communities which suit different investors better than others and serve a different purpose.
A “pure” investor would select Naples Park because of a location that is walking distance to beaches, nightlife and restaurants in nearby Mercato, no restrictions whatsoever on rentals, and a strong ROI. At the other end of the spectrum is the Pelican Bay community, which is rock solid in good times and bad times with very special amenities but limitations on leases. The demand for canal homes with Gulf of Mexico boating access (Conners at Vanderbilt Beach) will forever be strong…….there are only so many waterfront single-family homes.
There will always be exceptions to rules so there are some condominiums which enjoy both rental income and appreciation but this requires really peeling the onion back to examine rental policies, pet friendly policies, proximity to beaches, amenities and the extra carrying costs of quarterly condo fees. From the point of view of a good real estate investment, there are communities east of Route 41 which qualify but it’s going to be more for the purpose of a long term hold and a positive cash flow but no expectations for making money hand over fist as a seasonal vacation rental property on AirBnB.
As you can tell, the “choosing wisely” requires getting good advice from a Realtor who has years of experience, local knowledge and knows all sides of an investment – the purchase, potential rental income (seasonal vacation rental, part time rental and annual rental) as well as a potential future sale.
We have a much better, healthier balance between buyers and sellers in our current real estate market. Will prices go down more if you wait? That depends on the overall economy, of course, but locally it depends on precisely which neighborhood, exactly the location, rental policies, and the Law of Supply and Demand in the particular community.
Our advice is to be ready to pull the trigger at a moment’s notice and if you see something that you like in the next few months, write an aggressive offer. You are not the only one out there waiting for the right property to come along. Buyers and investors are still writing contracts every day. Those buyers and investors believe in the Naples area real estate and they are typically cash buyers. The cash buyer is not concerned about the interest rate of a mortgage loan and wants safe harbor to park some money. Naturally, we can negotiate a better price with better terms for our buyer clients if the transaction is cash.
If you are purchasing with a loan, get started with that process early so that you can confidently write an offer that is not necessarily contingent on loan approval. Either way, we want to match a serious buyer with a serious and motivated seller – it’s only through submitting an offer in writing that we find a fair deal for all.
In addition to a place to live and/or vacation for yourself, here are some options to invest in real estate (click on the links below):
Naples Park (single family homes, no HOA fees, no restrictions on rentals, walk to beaches, close to nightlife and restaurants)
Pelican Bay (premier community in the area with unsurpassed amenities, great central location, all types of housing, solid year in and year out)
Conners at Vanderbilt Beach (single family canal homes with boating access to the Gulf of Mexico and back bay boating up to Sanibel Island)
Regatta (condominiums within walking distance to Vanderbilt Beach and liberal rental policies)
Bonita Beachwalk (condos with a unique floor plan, excellent rental policy, walking distance to Bonita Beach and Barefoot Beach)
Serious buyer? We listen well and will find your own “Piece of Paradise” at the best negotiated price and terms. We are full-time professional Realtors who depend on your referrals and take pride in our work. We have lived and worked through all real estate cycles. Take advantage of our skill and strategy to make you a successful buyer in a challenging market.
Serious seller? We will give you honest advice about current market conditions and pricing. We will aggressively market your home to local, national and international buyers for the best results and a smooth transaction. Our experience in negotiating contract offers will result in the best terms for your own situation.
Tim Cranch at 239-272-4848 or Ellie Penaranda at 239-776-5077
