Is Cape Coral A Good Investment?
The answer to this question depends on what kind of investment you are referring to. The city of Cape Coral, FL was the original master-plan investment. It started out as the Rosen brothers decided to invest in a retirement community. The community turned into a city and it continues to expand to this day.
It grew to over 189,000 residents and it’s still a buyer’s market. Recently there was a foreclosure crisis that took over the real estate market in Cape Coral, FL, which had an after effect to increase demand for rental properties. Many long time residents of Cape Coral decided to change their status from owners to renters.
However, the city has a lower cost of living than the national average which attracts many people to remain here or relocate. This also makes it a great place to retire especially if you like waterfront living as housing costs are affordable and for all budgets.
Rental demands
The growing rental market demand provides good investment opportunities throughout Cape Coral and real estate investors should consider purchasing or they could look into building homes or condominium units. For the time being those investments will bring back revenues as rentals and in the long term, the housing market will stabilize increasing the purchasing powers of the residents.
This rental demand, however, doesn’t only come from current residents, but from snowbirds and seasonal visitors as well. The great year-round weather ensures capacity throughout the year in Cape Coral and very little necessity for maintaining the properties, especially for condominiums. Get in touch with real estate agents in Cape Coral FL, and see if there are any opportunities currently on the market.
Lessons from the past.
Similarly to the rest of Florida, Cape Coral is affected whenever there is a crisis, and the affordable real estate market takes a rough plunge. It already happened during the 2008 economic crisis. It is advisable to take into account that if another crisis hits the economy, the real estate market is historically incapable of standing tall. Prices dropped drastically between 2007 and 2008 by 51% after the last economic downturn, but the silver lining to any area that is a vacation destination is that the market is capable of getting back to its feet.
Popular Real Estate Glossary Terms
(1) Temporary and symbolic payment showing good faith and obligating two or more individuals until a final transaction takes place. The binder is typically returned if the final agreement ...
A cooperating broker or agent defines a real estate broker who helps another broker in a private property transaction. Typically, the cooperating broker represents the seller and is ...
A legally transferable debt instrument by which the issuer agrees to pay the payee within a certain time period. Note usually pay a specified rate of interest tied to the market rate of ...
(1) Type of loan where the final payment is substantially greater than the previous payments; also termed partially amortized loan. A debt agreement might stipulate a balloon payment when ...
Earthquake insurance is the type of insurance policy that specifically covers damages to your real estate caused by seismic activities. It can refer both to the rare coverage against ...
Latin: now for then. Descriptive of actions which are performed after a deadline has elapsed, but retroactively have the same effect as if they were carried out in a timely manner. For ...
(1) Methods that involve discounting the future cash flows generated by an income property. These techniques are used primarily for valuation. (2) Methods of selecting and ranking ...
Approach to appraise rental property based on anticipated future earnings to be derived from it plus the estimated selling price at the end of he period held. ...
Landowner's legal right to the water found on his property. For example, there might be a stream of water adjacent to the land. The water might be used for irrigation or other purposes. ...
Have a question or comment?
We're here to help.