Last week CNN Money reversed field a bit and declared Naples a top ten national real estate “turnaround” possibility. In fact the article went on to name “Miami, Phoenix, Orlando, Ft Myers, Sarasota, Boise, Naples, Ft. Lauderdale, Lakeland, Punta Gorda” giving Florida eight of the top ten national spots. All good news for our fair town and wonderful state.
I am not sure what happened to the CNN outlook – also of last week – which declared Florida was plunging into foreclosure after highlighting troubles in Jacksonville. Anyway we will take it. But remember the old real estate saying – all real estate is local in fact hyper-local – by town, neighborhood, street and building.
So what do investors see here in Naples real estate? Well for one they are seeing the “buy it and rent it play.” With rent ratios as low as 12 we have some interesting prospects to buy property, rent it, and even after taxes and sometimes HOA fees, management fees and upkeep they are still clearing positive returns – all of this excluding real estate appreciation possibilities. One of our clients see this as a place to put some cash until the economic storm blows over a bit.
Then we have the renovators. Buy it, renovate it, and sell it. Borrowed funds are cheap so leverage up a small gain into a big gain. Some neighborhoods we could tell you about in particular seem to be targets for this crowd. A side benefit of the renovation activity is job creation and neighborhood redevelopment. Some of these renovations are leaving neighborhoods in much better shape and local labor is needed to make it happen. Nice.
Anyway, as always get with a Realtor so you know the specifics of your building or street but we have to like CNN Money’s view of our little town. Turnaround. That has a nice sound to it.
Tell us what you think.
No legal or investment advice or suggestions are being given in this Blog. Actual real estate price and sales results are subject to market forces and are not completely predictable. Please consult a lawyer or investment advisor for such legal and investment advice. The writings of this Blog are intended for the sole use of our clients.
Mark Goebel, PA is a REALTOR with Coldwell Banker on 5th avenue in Naples, Florida with 35+ years of visiting and living in Naples. After 25 years at Accenture, Mark retired as a managing director and spends his time helping non profits and building a Naples real estate team with his wife Nan. Talk to Mark and Nan about life in Naples and why they chose this place to live full-time over all others and enjoy Naples real estate.
Mark Goebel, PA
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