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Cape
Coral Real Estate
Cape Coral real estate has been going up steadily. It is a
great city to live in and its proximity to the Gulf make it
ideal for boaters and fisherman.
Cape Coral continues to fuel the engine that powers
Southwest Florida’s unprecedented growth. Keep in mind that
the following statistics are from 2002 - 2003, but they
still illustrate Lee County's growth potential:
> Forbes magazine ranked Fort Myers-Cape Coral 5th Among the
Top 150 Cities for Job Growth in 2003.
> The Milken Institute named Fort Myers-Cape Coral as the
best performing city in the nation for job creation in their
2004 survey.
> Expansion Management Magazine named Lee County a four-star
community in its annual quality of life scorecard for 2003.
> U.S. Housing Markets ranked Fort Myers-Cape Coral as the
number one housing market in a metropolitan area in the
nation. (2003).
> Time magazine featured Lee County in their November 24,
2003 cover story as one of the “Hot Towns” for jobs.
> Self magazine ranked the Fort Myers-Cape Coral
metropolitan area “No. 1 in the nation for working women.”
(2003)
> The Bureau of Labor Statistics reported Lee County,
Florida as the fifth highest county in the nation for job
growth from March 2003 through March 2004.
If you roam around the city you’ll see evidence of that
growth. Nearly 5,000 new homes will be built this year. The
city is in the middle of a $200 million utility expansion
project and new parks are planned throughout the city.
It’s the waterfront that’s attracting so many newcomers. But
it’s also the affordable real estate, a balmy climate and
one of the lowest crime rates in the state.
Homeowners on the 400 miles of canals enjoy the use of boats
moored in the waterways bordering their properties. The
canals also help residents avoid flood damage during the
rainy season.
Cape Coral lies on the northwest side of the Caloosahatchee
River and includes 115 square miles of land area, only about
35 percent of it developed. The city extends from the
mile-wide Caloosahatchee to the wetlands on Pine Island
Sound. Homes here run from the mid $100,000s to more than $4
million.
Cape Coral residents boast one of the highest median incomes
in the area at $46,800. Yet, it’s becoming more than just a
retirement haven. The student population is growing at 5
percent annually. There are 17 new public schools planned
over the next nine years — three this year — along with four
charter schools.
Cape Coral Real Estate Investment Opportunities
Cape Coral real estate gives you a number of investment
opportunities.
1. Raw Land - I hesitate to say what lots are going for
these days in Cape Coral. They have been going up so quickly
that anything I write would have to be updated every few
weeks. Nevertheless, a building lot can be a great
investment. You just have to understand that the down
payment on land is generally a lot higher than it is to
build a home. Cape Coral land would make a great investment
for a self-directed IRA. If you want to learn how you can
use your IRA, 401K, etc., to buy real estate, give me a
call.
2. Spec Homes - We currently have a two ways for you to
invest in Cape Coral homes.
The first is an up to 100% construction loan. This means
that for a very low down payment (about 1.5% - 3% for the
land, home and appraisal) you can build a home. Afterwards
(or even before completion) you can sell it at a profit,
move into it or rent it out.
The second is also a spec home situation but with a higher
down payment. There is a limit on the 100% deals you can do
and many of our investors want to build more than one home.
Even with 10% down, the appreciation on these homes makes
the investment a great deal.
We have an office in Cape Coral as well as other strategic
locations in Florida. Give me a call and we can discuss
opportunities in this and other areas in the state.
Taking Off the Rose Colored Glasses
I see many sites that hint at 30-40% appreciation in Cape
Coral. True, historical appreciation has been that high.
But, it would be misleading and almost criminal for me to
promise that type of return on a continual basis. That would
mean that a $350,000 home would cost nearly $770,000 in
three years. Perhaps I lack vision, but I do not see that
happening.
However, at 10% average appreciation over the next three
years that same home would sell for $465,000. That is not an
outrageous claim and the market could support those types of
prices. Actually, it could do somewhat better.
Keep in mind that I have a tendency of understating the
market. Growth can be greater. Look at the research material
below.
Research Material from The National Association of Realtors
This has been extracted from a 2005 research report
conducted by the National Association of Realtors.
With home prices rising strongly in most parts of the
country, there has been widespread media coverage on the
possibility of a housing market bust. A thorough analysis of
the Cape Coral - Ft. Myers metro market, as detailed below,
reveals that there is very little danger of this. In fact,
the local housing market is in excellent shape with a
potential for significant housing equity gains, particularly
for home buyers who plan to remain in their house for the
long run. Because prices have risen faster than income, the
ratio of price-to-income is currently above the historical
norm. This measure is frequently cited to imply that there
is a housing market bubble. But this ratio is a misleading
measure in assessing bubble prospects. A more relevant
measure is the mortgage servicing cost relative to income.
This ratio is at a very manageable level. It implies no
widespread financial overstretching to purchase a home in
the region. Furthermore, the nationwide supply of homes on
the market relative to home sales is very lean, suggesting
similarly tight market conditions in the local area.
You will also need to consider the local fundamentals
Also taken from the NAR report:
The job market has been exceptionally strong.
- There have been 43,000 payroll job additions in the past
five years. Many new job holders seek their own housing
units.
- The region added in the past five years an estimated
78,000 new housing units of which about 52,000 were
single-family units.
- The ratio of five-year job gains to five-year new home
construction shows the “hangover” impact of the housing
shortage, or housing surplus.
In our case, the local market is at a neutral level as the
ratio is just slightly under one. With recent job gains and
the expected continued economic expansion, the jobs-to-new
home ratio could further increase. In addition, as mentioned
earlier, the newly arriving retirees will not show up in the
jobs data, though they will need housing.
Please call me for more information
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FACT:
1000 people a day are moving to Florida.
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