A few weeks ago, this column revisited a subject we’ve touched on before: From a comparative point of view—and despite all its recent, well-publicized woes—real estate is still one of the most productive long-term investments a person can make.
As we have in the past we included a graph—courtesy of real estate expert Steve Harney—comparing returns on investment for real estate versus the Dow, S&P and NASDAQ. The updated graph—which covers the twelve years beginning January 2000—shows that had you invested $100 in each early that year, by now you would have netted $140 in real estate, $112 on the Dow, $90 on the S&P and $70 on NASDAQ (Source: MSNMoney.com, Case Shiller—updated 01/01/12). Plus, you have the incalculable benefit of owning a home to be lived in and enjoyed for the duration.
Since then, we’ve heard a chorus of voices from the mainstream media chime-in on the same theme. This past weekend, the Sarasota Herald-Tribune became just the latest to suggest that now may well be the time to buy Sarasota real estate. In his Sunday column, real estate reporter Harold Bubil quoted Ted Jones—chief economist of Stewart Title—as saying that real estate has been a much better income-producing asset than stocks over the past decade. Jones, who holds a Ph.D in economics, explained to an audience at the Sarasota Association of REALTORS® why real estate is not just a good investment, but a great one. “Overweight your investment in real estate,” he advised them. “It is cheap and on sale.” (more…)
Discover resort-style living in Longboat Key's Beachplace. Pictured: 1055 Gulf of Mexico Drive, #206.
Set on the cherished south end of Longboat Key, the Beachplace condominium development is a wonderful community with a comfortable resort feel. Encompassing 31 acres and over 1,400 feet of prime Gulf of Mexico frontage, this sought after location enjoys proximity to the world-class shopping and dining of St. Armands Circle and downtown Sarasota. Enveloped by lush tropical landscaping and well-maintained grounds, Beachplace is a beautiful place to call home with a wealth of amenities that include 24-hour security, tennis courts, a Junior Olympic-size pool, a children’s pool, a Jacuzzi, outdoor grills, and a clubhouse with a fitness center and an activity room overlooking the beach.
Beachplace is desirable for year-round residents and investors, as it allows one-month rentals and an opportunity for income potential. (more…)
Palm Island offers a relaxed, tropical ambiance accessible only by boat. Pictured: 370 Bocilla Dr.
Spectacular sunsets of the Gulf of Mexico greet you each evening when you arrive by boat or car ferry to the stunning beauty of Palm Island, a gorgeous laidback island paradise located just off the coast of Cape Haze. Comprised of four interconnected islands accessible only by boat, the pace of life is befitting to its calm, tropically elegant ambiance.
A fabulous place to spend your vacation or a lifetime enjoying the beaches, tennis, diving or frequenting fabulous restaurants, authentic island life is epitomized through gliding yachts, golden shores and traditional beach homes. The marina, located on the mainland, offers convenient storage for your boat with easy accessibility to the island. (more…)
Fans of movie musicals—plus anyone of a certain age—will recall the images of Fred Astaire and Ginger Rogers swirling in choreographed perfection through nearly a dozen feature films. To heighten the image of their characters’ worldly sophistication, the most famous dance team in cinematic history was often filmed gliding across sets depicting glamorous penthouses soaring high above the canyons of Manhattan. Mesmerized viewers were left with no doubt that these “castles in the sky” represented life at the top—in more ways than one.
Cinematic tastes have changed considerably, but penthouses still connote the epitome of urban elegance and privacy, high style; and the unmistakable sense that their owners have “arrived.”
Penthouses live very spaciously, their “footprints” often equaling two or three combined residences on the floors below. Common to all are breathtaking vistas, oversized terraces, floor-to-ceiling windows to frame their amazing views, extraordinary privacy and amenities; and turnkey convenience to always allow for instant arrivals and departures. In other words, penthouses are designed and built to enhance every unique feature of their enviable top-floor locations. (more…)
Once you move into Heritage Oaks Golf and Country Club, you’ll hardly be tempted to leave. A full complement of amenities await you. An 18 hole championship golf course with a signature 18th hole of a 385-yard par 4, 4 lighted tennis courts with special Har-Tru surfaces that provide a true bounce, 5 heated swimming pools, a fitness center and lively fitness program, popular daily, weekly and holiday social gatherings, a newly renovated clubhouse and dining facilities. It’s all surrounded by the pristine beauty of 50 acres of wetlands and natural preserve.
Living quarters are equally luxurious, just what you would expect from three time winner of the national Natural Builder of the Year, U.S. Homes. A variety of Heritage Oaks models are available to suit your preference: single family homes, golf villas, club homes, and veranda condominiums. Many of the homes have a nature preserve or golf course view.
Heritage Oaks is located in Sarasota, the crown jewel of Florida’s gulf coast. Powder sand beaches bask in the sun, and renowned dining, shopping, theaters and museums are close by. The I-75 corridor is just a few miles away, providing convenient access to Lakewood Ranch, Venice, North Port, Nokomis and Tampa.
It’s that time of year again. The business media and its many pundits are issuing all sorts of recommendations for investments that are predicted to perform best in the New Year. You can barely watch TV or pick up the Wall Street Journal without seeing one.
Despite all its recent woes, real estate still enjoys the potential for being one of the best long-term investments you can make. That’s because the turmoil that rocked real estate markets over the past few years has largely subsided, leaving Southwest Florida home prices at their lowest level since the turn of the century. Now presumed to be at or near bottom, prices are expected to trend higher over the next several years; restoring real estate to the reliable long-term growth asset it has traditionally been. Plus with mortgage interest rates at unprecedented lows, the long-term cost of owning a second home, investment or retirement property has seldom been lower.
Each month, national real estate authority Steve Harney updates a graph comparing returns on investment for real estate versus the Dow, S&P and NASDAQ. His latest version (shown above) covers the dozen years between January 1, 2000 and January 1, 2012. Recent volatility in all these markets notwithstanding, had you invested $100 in each in early 2000, by now you would have netted $140 in real estate, $112 on the Dow, $90 on the S&P and $70 on NASDAQ (Source: MSNMoney.com, Case Shiller—updated 01/01/12).
Today’s real estate investors are a far cry from the frenzied, poorly-leveraged property flippers of a few years ago. They are well-capitalized, often pay in cash; and understand that to profit from real estate typically means hanging on to a well-maintained property for several years. Still, many investors begin recouping their costs immediately by leasing out their properties in today’s exceedingly strong rental market.
Beyond its investment potential, the purchase of a Southwest Florida home at today’s vastly lower prices will yield much more than a tangible parcel of real estate. You are also buying into one of America’s most outstanding cultural and recreational scenes, its top-rated beach, a superior choice of schools, universities and medical facilities; and many other first-rate amenities no other region in Florida can match. Plus, yours is an investment you can live in, retire to or vacation from—when you aren’t letting it pay for itself by leasing it out. (more…)
WASHINGTON – Jan. 10, 2012 – The number of housing markets showing measurable improvement nearly doubled in January with the addition of 40 new metros to the National Association of Home Builders/First American Improving Markets Index (IMI). The IMI now shows 76 improving markets, up from 41 in December, with 31 states and the District of Columbia represented by at least one entry.
In Florida, three cities made it onto IMI’s improved list: Jacksonville, Cape Coral and Punta Gorda.
“The fact that the list of improving housing markets nearly doubled this month shows that a significant, positive trend is developing, and is even more relevant when you consider the expanding geographic distribution of the list – which now includes 31 states and the District of Columbia,” says NAHB Chairman Bob Nielsen. “This trend could be even stronger if not for the numerous impediments that continue to slow a housing and economic recovery, including overly restrictive lending policies and the growing inventory of distressed properties in certain markets.”
The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top improving Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac, and single-family housing permit growth from the U.S. Census Bureau. (more…)
December property sales throughout Southwest Florida improved to its best level since August. Pending sales were also up marginally, though to their best level in seven months. Following are the combined highlights for the three-county region based on the latest Trendgraphix report on MLS sales for Sarasota, Manatee and Charlotte Counties:
• Overall sales in the region during December were 9.2% ahead of November; but 6.7% below last December.
• December “pendings,” a telling indicator of future sales performance, were 0.3% ahead of November; and 12.4% ahead of last December.
• December’s inventory of available properties in the three-county area was down by 1.6% versus November; but down by 26.3% compared with last December.
Click on the image below to view the entire Market Trend Report for December, 2011:
Find a wide mix of home styles and sizes in Tropical Harbor. Pictured: 628 Poinsettia Ave.
Located in Ellenton, Florida, Tropical Harbor is a great community consisting of just 116 home sites that were built between 1958 and as recently as 2011. Many of the properties are located on canals that lead directly to the Manatee River, which provides easy access to the Gulf of Mexico. This community features homes of all sizes and price ranges, starting at 884 square feet and growing to 5,100 square feet, and is rich in varying styles from Old Florida bungalows to Mediterranean-style estates.
Market Activity –Tropical Harbor
There are currently two homes on the market in Tropical Harbor that are under contract. One is listed for sale at $149,000 and has 1,247 square feet, two bedrooms and one bathroom. This home is located on a canal with a boat dock along the seawall.
The second home is listed for sale at $353,500 and has 3,784 square feet, four bedrooms and four bathrooms. This residence was built in 2007 with a pool and is also located on a canal.
One of the most recent sales in Tropical Harbor was listed by Debbie Vogler of Michael Saunders & Company and sold for $290,000. Adorned with neutral colors and located on a canal with a boat lift, this three-bedroom, 2,034-square-foot home featured many updates, including a remodeled kitchen with granite countertops and stainless steel appliances.
Why Choose Tropical Harbor?
The bottom line on what makes this community so appealing to buyers is that it offers a great mix of home sizes to suit all tastes. Also, if you enjoy water activities, Tropical Harbor features a great location for water sports and recreation.
Ellenton is located in northern Manatee County, and Tropical Harbor is just minutes to I-75, which makes commuting to both the Tampa Bay region and Sarasota a breeze.
Last week, the Sarasota Herald-Tribune profiled the buyers of last year’s ten most expensive homes. In doing so, it praised them for not only investing their wealth and confidence in Southwest Florida; but also for bringing a wealth of career and life experience to our community. The article was also quick to point out that the two highest sales of the year—involving properties sold for $12.5 and $7.58 million—were purchased by buyers from England and Canada. Not mentioned was the fact that agents from Michael Saunders & Company controlled 11 “sides” of the 10 sales. Six of the properties were listed—and five found buyers—through agents with the company.
News of these sales is encouraging on several fronts. First, our market, though by no means recovered, is having less and less trouble finding buyers for high-end properties—provided they are priced aggressively. Secondly, educated buyers in all price ranges are drawing the same conclusion; namely there may never again be buying opportunities to compare with those in today’s largely undervalued market. Still, even with value high on every buyer’s “must-have” list, they also choose Southwest Florida for its array of cultural amenities, award-winning beaches and other superior lifestyle options. (more…)
Does refinancing fit your situation?
Whether you're buying a home or refinancing, MSC Mortgage provides valuable online tools
and resources to help you make the decisions that are right for you.
For the best service with any of your home financing needs,
talk to one of our private mortgage bankers today.
A few weeks ago, this column revisited a subject we’ve touched on before: From a comparative point of view—and despite all its recent, well-publicized woes—real estate is still one of the most productive long-term investments a person can make.
