The press has said yesterday home prices are flattening or leveling. Sales have been picking up and inventory has been thinning, economics 101 tells us the prices will level. There is still room to move downward in some areas like north Cape Coral, Florida where the city continues with a water and sewer project that will attach an assessment of somewhere between ten and twenty thousand dollars to every property as it puts in a new water and sewer system. Considering Cape Coral is at the top of the national list for foreclosures and the well and septic systems work very well in that less populated area, that does not sound like a welcome action to the property owners. I own a property in that area and while the assessment does not affect me, especially since I already know it will mean my investment value will increase by the assessed amount or more and I will get a new road installed as well, there are those who are not so fortunate and cannot afford this assessment. While I feel bad for those people, the best and only thing I can do is help them sell if they must, which is why I recommend that area as a great place to watch for upcoming investment deals.
My personal favorite investment now and over the next 24 months are the homes in the far southern end of Cape Coral with Gulf of Mexico access. Those homes generally peaked at over half a million dollars for basically tear downs and can now be bought for just over 100k. Not that I expect the old prices anytime soon, but consider the benefits of these investment properties: minimum 80 foot wide deep water canals with a standard lot size of 80ft water frontage and 120 to 150 foot lot depth, typical home is three bedroom two bath with a garage, usually just minutes out to the open water of the Gulf for fishing or pleasure boating, minutes away from Sanibel Island and Fort Myers Beach by water or land, direct access to the Atlantic directly across the State of Florida via the Caloosahatchee River which connects to Lake Okeechobee and exits near West Palm Beach. I hear people asking, “Where can I invest?” Buying an investment property at the bottom of the market in a location like this is hard to beat.
Here is my disclaimer, you need to do your homework before making any real estate investment. What is right for one person may not be right for another and if you buy a property without consulting a professional Realtor (see earlier article) and you pay too much or buy a lemon, don’t blame me. If you contact me and we get you a great property, then you are welcome to blame that on me to all of your friends.