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Real Estate Investing is in
many ways very similar to regular stock market investing. Timing is
everything; buy low, sell high. Just like investing in the stock market,
there are two objectives:
1) short term gains:
generating a cash-flow; instead of dividends, it will come from rental
income.
2) long term gains:
an appreciation of the value of the underlying assets.
After many years of
aggressive property appreciation, the real estate market was ready for a
correction. Southwest Florida has entered into a corrective phase that
started around the middle of 2005. How long will this correction last? Are
we at or close to a bottom? Is now a good time for buying, or is it better
to wait a little longer?
No one has a crystal ball,
but it is possible to find VERY GOOD investment properties NOW, especially
for long term investors. The main argument for buying now, lies in the fact
that certain buyers OVER EXTENDED themselves right at the end of the boom.
They bought pre-construction properties, that are now being delivered. A
number of these buyers simply walked away from their positions, forfeiting
their down payments. Others choose to take possession of their property.
However, since a lot of these speculative buyers don't have the money to
hold on to these properties, they are trying to UNLOAD them now. This is
where currently the best deals can be found! Needless to say, these
properties are being picked up by savvy investors, and pretty soon this
buying opportunity will disappear.
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Currently there are 2
excellent investment opportunities in the Ft. Myers Downtown
Redevelopment District. Those of you familiar with this project,
will recognize that in 5-10 years, this area will be top notch!
Presently there are about a DOZEN high-rise projects planned on the
banks of the Caloosahatchee River. Two of these projects have
completed and units were delivered for occupancy recently.
One of these high
rise developments is called
BEAU RIVAGE. Beau Rivage is a 22-story high-rise,
overlooking the river and sits a mere 600 yards from the down town area.
When writing this, there are MULTIPLE 3 bedroom units for sale UNDER
$300K! Beau Rivage was constructed under the latest hurricane code
enforcements, able to withstand wind guts of up to 130 MPH. Each unit
comes with 2 covered parking spots in the attached garage. Riverside
pool and a host of other world-class amenities are offered to residents.
Another development is
ALTA MAR. Alta Mar is a mid-rise, 7 story U-shaped building
facing the Caloosahatchee River. Inside the U is a beautiful walk-in pool,
right on the water front. Boat docks will be available for unit owners. An
architectural gem, the Alta Vista is reminiscent of Havana in it's glory
days. 2 bedroom units start at just under $200K. |
