How to Buy a House Right Now

How to Buy a House Right Now

WRITTEN BY JAYMI NACIRIPOSTED ONWEDNESDAY, 25 MARCH 2020 05:30

 
 
 

As we navigate the (hopefully temporary) new-world order in an attempt to control and contain the global coronavirus pandemic, the real estate industry is making its own constantly evolving set of adjustments. The industry over the past few weeks has centered around two major themes: 1) Super-low mortgage rates that have created a refinancing boom; 2) And the possibility that the coronavirus will force a widespread pause of mortgage payments. 

These are uncertain times, to be sure. But those same low rates that are driving refis are also attracting homebuyers. “The 30-year fixed mortgage rate hovers above 3 percent, the lowest that it has been in nearly 50 years,” Andrina Valdes, executive sales leader and CEO of Cornerstone Home Lending, Inc., told Apartment Therapy. “The lower the mortgage rate, the lower a monthly mortgage payment is likely to be. So, anyone who’s on the fence and thinking about buying a home could really benefit right now by purchasing at a record-low rate.”

The truth is, there are still homes on the market. There are still people who need to sell. And there are still people who need or want to buy. If you’re one of them, you’re probably wondering how to go about it. iBuyers have largely shut down entirely or shuttered at least temporarily, and several companies, including Keller Williams, have cancelled all open houses, “while smaller brokerages, like the about 100-agent New York-based brokerage Modern Spaces, has closed offices and sales centers, instead offering virtual walk-throughs and tours,” said Yahoo Finance.

So how can you buy something you can’t see? It’s time for technology to take over. “This time the use of technology may have a significant part to play in how the housing market can try and continue in a ‘normal’ fashion,” said Bindi Norwell, chief executive of the Real Estate Institute of New Zealand on One Roof.

That means that your house tour will probably be virtual. Agents are embracing the tech available to them to bring homes to buyers since they can’t bring buyers to homes.  

“As an alternative to in-person viewings, some agents are turning to tech, offering buyers virtual tours,” said the New York Times. “The NYC-based Ideal Properties Group launched a virtual listing viewer called Showings on Demand. 

Individual real estate agents have followed suit. Kendyl Young, Broker/Owner at Glendale DIGGS, just held a Facebook Live Open House for her new restored Post and Beam, mid-century modern listing near Brand Park in Glendale, with plans to do more. “I'll show you around the space and take your direction,” she said on Facebook. “Want me to show you a particular room? I will. Missed the part where I showed off the family room? Tell me—I'll go back. A close up of the super cool family room fireplace wall? I'll get closer. You are the PUPPET MASTER and I am at your direction.”

It’s all part of being able to adapt to clients’ needs during this time. 

“Buying a home will always be a very human experience, but we need to adapt to this crisis,” she told us. “Physical showings are not safe, and we can marry technologies like 3-D scans, Webb meetings, and video conferencing to provide a pretty reasonable virtual experience. We must find ways to serve our clients while staying safe.” 

Elle Jones of Keller Williams’ Harma Real Estate team is showing her new San Fernando Valley, CA listing, among others, via FaceTime. “If you'd like to view a house, I'm happy to go by and do a FaceTime walk through for you,” she posted on Facebook. “If you’d like to see my #Newlisting in #ShermanOaks even better! Let’s get through this together!”

The State of the Florida Real Estate Market In 2020

By

 Guest Contributor

 -

 Mar 2, 2020

Forbes has listed Florida cities, including Jacksonville, Miami, and Orlando among the best bets for real estate investors (2019-2020). Last year the market was exceptionally good and the same is expected in 2020. Florida indeed has one of the most rewarding real estate markets. There is a good reason behind all this. Florida is surrounded by the Gulf of Mexico, Alabama, Georgia, and the Atlantic Ocean. It is an international tourist destination. Its economy is dynamic and diverse. The government of Florida encourages pro-development and pro-business mindsets.  If you are looking to make any investments in the real estate market of Florida, this is the right time. Visit NRIA for better guidance and management of property-related matters.

Real Estate Market

Investors in Florida love its real estate market. According to a recent publication by the World Property Journal, the buying and renting of homes in Florida is in great demand.  Home sales have significantly increased by 11% over the past few months. The experts at Florida Times-Union stated that the real estate market of Florida will keep on growing at a rapid rate in 2020. Two main reasons behind this growth: the local economy is getting stronger and the population is increasing.

Market Stats

Let’s take a look at the key market stats:

• In Florida, median home values have ramped up to 4.1% over the last year. It is estimated to grow by another 3.6% in 2020.
• The median home value is approximately $238,600. Currently, Florida’s real estate market is ranked as “very hot” (As of October 2019).
• In Florida’s market, the median listing price of any house is around $294,900, whereas the median selling price is around $227,500.
• In Florida, 7% of the homes hold a negative equity vs. 8.2% U.S. average.
• In Florida, 1.4% of the homes hold a delinquent mortgage vs. 1.1% nationally.
• Approximately 16.5% of the properties listed for sale in Florida have a price cut during their listing period.
• In Florida, the average period on the real estate market is 83 days.

The key stats for Florida’s real estate market vary by area.  Conduct detailed research on the market by taking into consideration cities, including Miami, Tampa, Orlando, Naples, Tallahassee, and Jacksonville.

Renters’ Market

In Florida, the renter market is also very strong. The University of Central Florida has predicted that “single-family housing will remain in short supply despite housing starts accelerating.” This means there is going to be an in equilibrium, i.e., demand > supply.

Market Stats

The key market stats for a renters’ market are given below:

• Rental amounts have increased by approximately 30% since 2011.
• The average rent list price per square foot is $1.36.
• The median rent is $1,714/month in Florida vs. the median rent is $1,588/month in U.S.
• The median monthly rents by bedroom in Florida range from $1,494 for a studio unit up to $2,135 for a four-bedroom house.
• The percentage of rental households keeps on growing. Homeownership in Florida is 65.5%, the lowest level since 1990.
• Homeownership rates in Miami, Tampa, and Orlando have all fallen below 50% – people are renting rather than owning places.

What’s Ahead for Florida Real Estate?

According to Miami Agent Magazine, the real estate market in Florida is going to be a key factor for its economic growth. Let’s recap how 2019 ended for the market and what’s expected for 2020.

Florida Realtor’s chief economist, Brad O’Connor, stated that, “unexpectedly low mortgage rates were the big story in last year’s housing market, leading to more home sales across Florida than originally anticipated.

“Meanwhile, home prices continued to march upward throughout the year, increasing affordability challenges in several markets across the state. The inventory of homes for sale remains low, and builders are still unable to satisfy the demand driven by Florida’s strong, vibrant economy.

“Primary focus of Florida Real Estate Trends 2020 will be to explore which of these trends will continue throughout the next 12 months.”

10 Reasons To Buy Investment Properties In Cape Coral, FL

Should you buy investment properties in Cape Coral, FL? We’ll focus on practical reasons you’d want to invest in the Cape Coral real estate market, rather than the generic platitudes of “great atmosphere” and “you’ll love their restaurants.”

1. Cape Coral Is Proportionally Large Student Market

Florida Southwestern State College is located near downtown Cape Coral. Edison State College is located in town. The city is within easy commuting distance of Florida Gulf Coast University and Ave Maria University. This provides a relatively large student market to cater to. However, you don’t see the same fluctuations in the housing market that you would if the only major college in town becomes less popular.

2. The Tourist Market

The Cape Coral area is so popular with tourists that they’re struggling to regulate short term rentals. However, Cape Coral law forbids rentals less than 7 days, though the area is popular with seasonal renters like snowbirds and longer term rentals to them is certainly legal. The Cape Coral real estate market is particularly attractive to those who love the ocean and don’t want to live in a dense downtown.

3. The Supply-Demand Curve

We’ve already mentioned that the city of Cape Coral was a planned community. The strict zoning limits the development of new housing stock. That in turn limits supply though demand is high. That creates faster than average rent increases that yield significant returns for investors.

On the flipside, Cape Coral didn’t build a glut of luxury condos that have caused a several year backlog of such inventory in other housing markets. Because the surrounding area is built up, there isn’t room to build a lot of single family homes that bring down existing home prices, either.

4. The Strong Rental Market

Between tourists, students, snowbirds, seasonal workers and locals who cannot afford to buy a home or condo, the Cape Coral real estate market has a strong market for rentals. However, it isn’t a market that is so hot for rental units that new construction could cause that bubble to burst.

Cape Coral has roughly a third of its population renting, a rate higher than suburbs but lower than Fort Myers proper. Rental rates won’t go down in Cape Coral as they might in Fort Myers due to redevelopment there. Nor will they be able to buy a house in the suburbs; nearly half of all renters spend more than a third of their income on housing.

5. The Likely Growth of the Rental Market

Pay scales in Cape Coral haven’t kept up with the double digit rent increases. That is in part because the large student market isn’t very sensitive to rent increases, and it is in part because they provide cheap labor that keeps wages from going up. The movement of Fort Myers residents to the relatively affordable area, too, drives up rents.

That means that the number of renters in the Cape Coral real estate market will go up while supply won’t increase the return on investment for those who invest in this housing market today. That is why rents in the Cape Coral zip code are expected to hit $1500 a month though the median income is around $50,000 a year.

6. Cape Coral Is Affordable by Local Standards

Cape Coral is affordable to renters and investors alike by Fort Myers standards. The average rent for a Fort Myers apartment is $1200 a month. A studio apartment comes in at $750 a month while a one bedroom yields around $1000 or more a month.

Many choose to rent in north Cape Coral and commute to Fort Myers, trading time for money. For investors looking at buying real estate in Florida, the $250,000 median price tag is certainly better than the much higher bill you’d get if you tried to invest in Miami.

7. The Hidden Buying Opportunities

The large number of snowbirds who visit Cape Coral seasonably provides a better opportunity for investors in the Cape Coral real estate market. Do your research, and you could buy a home from a snowbird that is going to stop traveling, whether staying home in Quebec or moving into a Miami nursing home. This demographic is notable for the number of luxury condos they hold onto.

8. When the Market Is Low, It Is Really Low

Florida in general has a strong real estate market because of its economic growth. Florida, like Texas, is attracting people from New York, California and the Rust Belt with the beautiful combination of low taxes, high employment rates and decent cost of living. Florida, unlike Texas, sees far more radical swings in property values, and it isn’t just due to the hurricanes. When Florida’s real estate market is down, it crashes.

That provides an excellent buying opportunity for those who want to invest in the Cape Coral real estate market. The inevitable upswing will yield a significant return on investment in the Cape Coral housing market. If you do want to fix and flip, the aftermath of a hurricane is a great time to buy. And unlike the Atlantic coast, Cape Coral isn’t hit with hurricanes as often. That means the Cape Coral housing market will come with lower insurance costs than Miami, too.

9. Florida Has Low Taxes in General

Florida doesn’t have a state income tax. If you shield rental real estate by holding them in a corporation, then the corporation will pay modest income taxes. Florida’s property tax rate is 1.1% of assessed value, a little less than the national average of 1.2%. City and county property taxes are on top of that. The Cape Coral property tax rate is nearly $7 per $1000 per property value. And the city is discussing lowering its property tax rate.

10. Florida Is Landlord Friendly

Florida is a landlord friendly state. For example, there is no rent control. Security deposits have no limit on how high they can be. If the rent is overdue, state laws say they only need three days’ notice to be evicted. If they’ve intentionally damaged the property, you can give them an unconditional 7 day quit notice. The same is true for repeated lesser lease violations, though the eviction in that case requires going through the court system. This makes the Cape Coral housing market a good option for those who want to invest in waterfront property over Maryland or Hawaii.

Cape Coral Real Estate Investment: Summary

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. The Cape Coral real estate market offers strong yields and nearly certain growth in property values without the wild swings and degree of risk Miami real estate market has.

Why is Cape coral one of the best markets for real estate investment?

• Diverse economy, and stable market.
• Home to 32 Fortune 500 companies.
• Over 50% of the population rents.
• Newly built SFD and duplex properties.
• Solid blue-collar areas with high rents.
• High private sector employment.
• Top 10 MSA for Fastest Job Growth (Bloomberg, Aug 2016)

Is Cape Coral The Best Market For Real Estate Investment In 2019?

Cape Coral Real Estate Market Report 2019

Cape Coral is a city in Southwest Florida, sandwiched between the ocean and Fort Myers. You probably haven’t heard of it unless you’ve vacationed there to be close to the ocean without officially being in Fort Myers. We’ll first share a number of facts about this Fort Myers suburb. Then we’ll share 10 reasons to invest in the Cape Coral real estate market. Cape Coral is home to around 180,000 permanent residents. However, it is part of the 700,000 strong Fort Myers metropolitan area. The town is notable for the number of navigable canals and rivers in the area. It is also one of the early master planned communities, though it isn’t as bad as Coral Gables near Miami.

The Cape Coral housing market is somewhat competitive. The average sale price of a home in Cape Coral was $233K last month. Prices reflect cost of living, and here in Southwest Florida, the cost of living is affordable. In Southwest Florida they have lower taxes, so people get to keep more of their income. Southwest Florida real estate market is a good deal. It offers water, warmth and a way of life and a median sales price that is less than that of the United States. Cape Coral is a vibrant and friendly community with all the beauty that you expect from Southwest Florida. With more than 400 miles of canals, boating, fishing and water sports are a significant enhancement to the quality of life here in Cape Coral.

Cape Coral Real Estate Market Forecast 2019

Let’s take a look at the real estate market forecast of Cape Coral. On Zillow, the median home value in Cape Coral is $227,500. Cape Coral home values have gone up 5.6% over the past year and the Cape Coral real estate market prediction is that they will rise 0.8% in 2019. The median list price per square foot in Cape Coral is $151, which is lower than the Cape Coral-Fort Myers Metro average of $160. The median price of homes currently listed in Cape Coral is $259,900 while the median price of homes that sold is $216,600. The median rent price in Cape Coral is $1,560, which is lower than the Cape Coral-Fort Myers Metro median of $1,750.

Price Forecast for Cape Coral, FL (Metropolitan Statistical Area)

6.33%	10.2%	14.17%	18.73%
Next 24 Months	Next 36 Months	Next 48 Months	Next 60 Months

Metropolitan Statistical Area (MSA) represents the current U.S. defined sampling area or region for reporting data to various local and state governments.  MSAs may cross county and state lines to form a qualified statistical region.

Cape Coral Real Estate Market Trends 2018

Currently, the statistics show us that the Cape Coral real estate market is very healthy. On Trulia, the Cape Coral real estate market trends indicate a decrease of $4,000 (-2%) in median home sales and a -1% drop in median rent per month over the past year. The average price per square foot for this same period fell to $139, down from $140. Trulia has 1,544 resale and new homes in Cape Coral lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.

Data by Trulia.com

Average price per square foot for Cape Coral was $139, a decrease of -1% compared to the same period last year. The median rent per month for apartments in Cape Coral for Sep 22 to Oct 22 was $1,580. The median sales price for homes in Cape Coral for Jul 18 to Oct 17 was $220,000 based on 970 home sales.

Cape Coral Real Estate Market Summary

• Median Sales Price: $220,000 (On Trulia)
• Price Per Sqft: $139
• Median Rent Per Month: $1,580
• Median Household Income: $50,553
• Home Owners: 74%
• Single Residents: 29%
• Median Age: 45
• College Educated: 27%

There are 8,336 homes for sale in Cape Coral on Realtor.com, ranging from $1.5K to $7.1M. In October 2018 the housing market in Cape Coral, FL was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Buyer’s markets are generally more advantageous for buyers rather than sellers. The Sale-to-List Price Ratio was 97.78%. Homes in Cape Coral, FL sold for 2.22% below asking price on average in October 2018. On average, homes in Cape Coral, FL sell after 84 days on the market. The trend for median days on market in Cape Coral, FL is flat since last month, and flat since last year.

On Realtor.com, there are 8,336 homes for sale in Cape Coral, FL, 442 of which were newly listed within the last week. Additionally, there are 671 rentals, with a range of $600 to $13.9K per month.

Graph Credits: Realtor.com®

As per Neighborhoodscout.com, single-family detached homes are the single most common housing type in Cape Coral, accounting for 79.31% of the city’s housing units. Other types of housing that are prevalent in Cape Coral include large apartment complexes or high rise apartments ( 11.33%), duplexes, homes converted to apartments or other small apartment buildings ( 6.64%), and a few row houses and other attached homes ( 2.04%). Owner-occupied, three and four bedroom dwellings, primarily in single-family detached homes are the most prevalent type of housing you will see in Cape Coral. Owner-occupied housing accounts for 68.22% of Cape Coral’s homes, and 77.44% have either three or four bedrooms, which is average sized relative to America.

On Movoto, the median list price in Cape Coral is $275,000. The median list price in Cape Coral was less than 1% change from November to December. Cape Coral’s home resale inventories is 2,403, which increased 0 percent since November 2018. The median list price per square foot in Cape Coral is $156. November 2018 was $156. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in December.

Graph Credits – Movoto.com

Cape Coral Real Estate Trends – Foreclosures And Bank Owned Properties

The percent of delinquent mortgages in Cape Coral is 1.0%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Cape Coral homeowners underwater on their mortgage is 5.5%, which is lower than Cape Coral-Fort Myers Metro at 6.2%.

On RealtyTrac, there are currently 704 properties in Cape Coral, FL that are in some stage of foreclosure (default, auction or bank owned properties) while the number of homes listed for sale in Cape Coral on RealtyTrac is 2,424. In October, the number of properties that received a foreclosure filing in Cape Coral, FL was 18% higher than the previous month and 32% higher than the same time last year. Home sales for September 2018 were down 100% compared with the previous month, and down 100% compared with a year ago.

The median sales price of a non-distressed home in Cape Coral was $0. The median sales price of a foreclosure home in Cape Coral was $0, or 0% higher than non-distressed home sales.

Chart Credits – RealtyTrac

Cape Coral Real Estate Trends – Home Prices And Appreciation Rates

Cape Coral real estate appreciated 27.11% over the last ten years, which is an average annual home appreciation rate of 2.43%, putting Cape Coral in the top 20% nationally for real estate appreciation. Appreciation rates are so strong in Cape Coral that despite a nationwide downturn in the housing market, Cape Coral real estate has continued to appreciate in value faster than most communities.

Looking at just the latest twelve months, Cape Coral appreciation rates continue to be some of the highest in America, at 7.06%, which is higher than appreciation rates in 77.30% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Cape Coral. Cape Coral appreciation rates in the latest quarter were at 1.43%, which equates to an annual appreciation rate of 5.84%.

10 Highest Appreciating Jackson Neighborhoods Since 2000: By Neigborhoodscout.com

If you are a home buyer or real estate investor, Cape Coral definitely has a track record of being one of the best long term real estate investments in America through the last ten years. These are the ten neighborhoods in Cape Coral with the highest appreciation rates since 2000. For more information you can visit their site.

1. Bayshore Dr / Bayshore Ave
2. NE Pine Island Rd / NE 13Th Ave
3. Tropicana Pky W / Chiquita Blvd N
4. Country Club Blvd / SE 33rd St
5. SW 58th Ter / SW 1st Ct
6. SE El Dorado Pky / Coronado Pky
7. SE Santa Barbara Pl / SE 17th St
8. Santa Barbara Blvd N / Kismet Pky W
9. Jacaranda Pky / NE 7th Pl
10. Cape Coral Pky W / Chiquita Blvd S

Best Neighborhoods in Cape Coral Florida: By Realtor.com

There are 5 popular neighborhoods in Cape Coral. Cape Harbour has a median listing price of $499.5K, making it the most expensive neighborhood in Cape Coral. Downtown Cape Coral is the most affordable neighborhood in Cape Coral, with a median listing price of $168.9K.

Cape Coral Neighborhood	Median Listing Price	Median Price/Sq Ft	Rentals For Sale	Market Highlights
Trafalgar	$275K	$148	28 rentals, with a range of $1.1K to $4.2K/mo.	Buyer's market. Low crime risk, and newer homes. Above avg. schools.
Bimini Basin	$199.9K	$140	27 rentals, with a range of $850 to $3.8K/mo.	Seller’s market. There is only one school in Bimini Basin.
Cape Coral Caution	$460K	$208	14 rentals, with a range of $1.1K to $10.7K/mo.	Buyer's market.
Cape Harbour	$499.5K	$276	7 rentals, with a range of $2K to $5K/mo.	Buyer's market. Low crime risk, and newer homes.
Downtown Cape Coral	$168.9K	$153	9 rentals, with a range of $850 to $1.5K/mo.	Balanced market. Homes sell faster. 3 private & charter schools.

10 Reasons To Buy Investment Properties In Cape Coral, FL

Should you buy investment properties in Cape Coral, FL? We’ll focus on practical reasons you’d want to invest in the Cape Coral real estate market, rather than the generic platitudes of “great atmosphere” and “you’ll love their restaurants.”

1. Cape Coral Is Proportionally Large Student Market

Florida SouthWestern State College is located near downtown Cape Coral. Edison State College is located in town. The city is within easy commuting distance of Florida Gulf Coast University and Ave Maria University. This provides a relatively large student market to cater to. However, you don’t see the same fluctuations in the housing market that you would if the only major college in town becomes less popular.

2. The Tourist Market

The Cape Coral area is so popular with tourists that they’re struggling to regulate short term rentals. However, Cape Coral law forbids rentals less than 7 days, though the area is popular with seasonal renters like snowbirds and longer term rentals to them is certainly legal. The Cape Coral real estate market is particularly attractive to those who love the ocean and don’t want to live in a dense downtown.

3. The Supply-Demand Curve

We’ve already mentioned that the city of Cape Coral was a planned community. The strict zoning limits the development of new housing stock. That in turn limits supply though demand is high. That creates faster than average rent increases that yield significant returns for investors.

On the flipside, Cape Coral didn’t build a glut of luxury condos that have caused a several year backlog of such inventory in other housing markets. Because the surrounding area is built up, there isn’t room to build a lot of single family homes that bring down existing home prices, either.

4. The Strong Rental Market

Between tourists, students, snowbirds, seasonal workers and locals who cannot afford to buy a home or condo, the Cape Coral real estate market has a strong market for rentals. However, it isn’t a market that is so hot for rental units that new construction could cause that bubble to burst.

Cape Coral has roughly a third of its population renting, a rate higher than suburbs but lower than Fort Myers proper. Rental rates won’t go down in Cape Coral as they might in Fort Myers due to redevelopment there. Nor will they be able to buy a house in the suburbs; nearly half of all renters spend more than a third of their income on housing.

5. The Likely Growth of the Rental Market

Pay scales in Cape Coral haven’t kept up with the double digit rent increases. That is in part because the large student market isn’t very sensitive to rent increases, and it is in part because they provide cheap labor that keeps wages from going up. The movement of Fort Myers residents to the relatively affordable area, too, drives up rents.

That means that the number of renters in the Cape Coral real estate market will go up while supply won’t increase the return on investment for those who invest in this housing market today. That is why rents in the Cape Coral zip code are expected to hit $1500 a month though the median income is around $50,000 a year.

6. Cape Coral Is Affordable by Local Standards

Cape Coral is affordable to renters and investors alike by Fort Myers standards. The average rent for a Fort Myers apartment is $1200 a month. A studio apartment comes in at $750 a month while a one bedroom yields around $1000 or more a month.

Many choose to rent in north Cape Coral and commute to Fort Myers, trading time for money. For investors looking at buying real estate in Florida, the $250,000 median price tag is certainly better than the much higher bill you’d get if you tried to invest in Miami.

7. The Hidden Buying Opportunities

The large number of snowbirds who visit Cape Coral seasonably provides a better opportunity for investors in the Cape Coral real estate market. Do your research, and you could buy a home from a snowbird that is going to stop traveling, whether staying home in Quebec or moving into a Miami nursing home. This demographic is notable for the number of luxury condos they hold onto.

8. When the Market Is Low, It Is Really Low

Florida in general has a strong real estate market because of its economic growth. Florida, like Texas, is attracting people from New York, California and the Rust Belt with the beautiful combination of low taxes, high employment rates and decent cost of living. Florida, unlike Texas, sees far more radical swings in property values, and it isn’t just due to the hurricanes. When Florida’s real estate market is down, it crashes.

That provides an excellent buying opportunity for those who want to invest in the Cape Coral real estate market. The inevitable upswing will yield a significant return on investment in the Cape Coral housing market. If you do want to fix and flip, the aftermath of a hurricane is a great time to buy. And unlike the Atlantic coast, Cape Coral isn’t hit with hurricanes as often. That means the Cape Coral housing market will come with lower insurance costs than Miami, too.

9. Florida Has Low Taxes in General

Florida doesn’t have a state income tax. If you shield rental real estate by holding them in a corporation, then the corporation will pay modest income taxes. Florida’s property tax rate is 1.1% of assessed value, a little less than the national average of 1.2%. City and county property taxes are on top of that. The Cape Coral property tax rate is nearly $7 per $1000 per property value. And the city is discussing lowering its property tax rate.

10. Florida Is Landlord Friendly

Florida is a landlord friendly state. For example, there is no rent control. Security deposits have no limit on how high they can be. If the rent is overdue, state laws say they only need three days’ notice to be evicted. If they’ve intentionally damaged the property, you can give them an unconditional 7 day quit notice. The same is true for repeated lesser lease violations, though the eviction in that case requires going through the court system. This makes the Cape Coral housing market a good option for those who want to invest in waterfront property over Maryland or Hawaii.

Cape Coral Real Estate Investment: Summary

Pic Credits: Pixabay.com | Photo by Thomas Busse

If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. The Cape Coral real estate market offers strong yields and nearly certain growth in property values without the wild swings and degree of risk Miami real estate market has.

Why is Cape coral one of the best markets for real estate investment?

• Diverse economy, and stable market.
• Home to 32 Fortune 500 companies.
• Over 50% of the population rents.
• Newly built SFD and duplex properties.
• Solid blue-collar areas with high rents.
• High private sector employment.
• Top 10 MSA for Fastest Job Growth (Bloomberg, Aug 2016)

We have single family homes and a new construction duplex for sale in Cape Coral, FL. Each unit of this duplex has 3 bedrooms and 2 bathrooms with 2 car garage. Purchase Price of the duplex is $299,500. It gives a Cash Flow (Raw) of $1,702 per month and a Cap Rate of 6.8%. Click on the link for affordable investment properties for sale in Cape Coral, FL.

Where To Buy Investment Properties In 2019?

Apart from markets like Cape Coral, you can go for the Jackson real estate market because of strong cash-on-cash returns. Jackson, MS has affordable multi-families, and affordable 1 bedroom listings. The Jackson Mississippi real estate market is an affordable market for investors with a good ROI and multiple rental markets you can take advantage of. There are 119 schools in Jackson, MS. There are 47 elementary schools, 19 middle schools, 13 high schools and 40 private & charter schools. The Jackson Mississippi real estate market has seen the same movement to the suburbs as other markets. However, the development has followed clearly understood routes – they spread out along Interstate 20, Interstate 55 and Interstate 220. If you want to know where new homes and businesses will be built, just look a little further down these highways.

Another city that we suggest is the Boise, Idaho. The Boise real estate market has been on fire in 2018. The 2019 forecast  is that it is going to be a hot investment destination for new real estate investors. One of the attractions of the Boise real estate market is the sheer number of affordable large single family homes. You could find a four bedroom home for around $200,000, roughly $100,000 below the national average, several years ago. With increasing demand, homes are still a deal at around $250,000.

Boise has very low taxes, especially compared to the West Coast. The progressive income tax tops out at 7.4%, while the sales tax is about 6%. You pay less for utilities and car insurance, too. For investors, the average 1% property tax rate is a bargain, especially when you factor in the low cost of housing. The average property tax bill is around $2300. The national average is 1.2% of the home’s assessed value and an annual property tax bill of $3000, though in places like New Jersey and New York, it could surpass $10,000.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing. We can help you succeed by minimizing risk and maximizing profitability of your real estate investments.

*Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified.

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Cape Coral Real Estate Market References:

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states/

Taxes
https://www.stateofflorida.com/taxes.aspx
https://www.investopedia.com/walkthrough/guide-buying-house-us/property-tax-assessment-state/southern-region-property-taxes/florida-property-tax-guide/
https://www.news-press.com/story/news/2016/09/09/cape-coral-sets-tentative-property-tax-rate/90008638/

city data
https://en.wikipedia.org/wiki/Cape_Coral,_Florida

tourism market
https://www.avalara.com/mylodgetax/en/blog/2018/01/cape-coral-fort-myers-beach-debate-short-term-rental-regulation.html

Student Market

https://www.collegesimply.com/colleges/florida/cape-coral/

supply demand
https://www.rentcafe.com/average-rent-market-trends/us/fl/cape-coral/

Rental market
https://www.news-press.com/story/news/2018/05/07/fort-myers-council-passes-controversial-vacation-rental-property-rule/580929002/
http://www.nbc-2.com/story/36915448/lack-of-affordable-housing-a-crisis-in-fort-myers
https://www.news-press.com/story/news/2018/05/18/housing-situation-lee-county-rough-getting-worse/619325002/

Affordable by local
https://www.deptofnumbers.com/rent/florida/cape-coral/
https://www.rentcafe.com/average-rent-market-trends/us/fl/fort-myers/
https://www.forbes.com/places/fl/cape-coral                                                            https://wsvn.com/news/local/south-florida-residents-spend-more-of-their-income-on-rent-than-any-other-place-in-the-u-s-study-finds

buying opportunities / foreclosures
https://therealdeal.com/miami/2017/05/11/miami-dade-has-the-second-highest-rate-of-repeat-foreclosures-of-any-major-market                                                                                  https://therealdeal.com/miami/2011/06/03/nyc-snowbirds-moving-south-scooping-up-miami-high-end-rentals

likely growth of rental market
https://www.news-press.com/story/news/2016/02/26/cape-coral-fort-myers-rent-rate-increase-tops-nation/80942078/

Property valuation swings
https://www.stateoffloridaliving.com/florida-real-estate-market/

Market Trends And Forecast                                                                                                https://www.zillow.com/cape-coral-fl/home-values      https://www.realtytrac.com/statsandtrends/markettrends/fl/lee-county/cape-coral https://www.neighborhoodscout.com/fl/cape-coral/real-estate                                      https://www.movoto.com/cape-coral-fl/market-trends                          https://www.trulia.com/real_estate/Cape_Coral-Florida/market-trends                    https://www.realtor.com/local/Cape-Coral_FL

Cape Coral Real Estate Market Trends And Forecast 2019

Cape Coral Real Estate Market Trends And Forecast 2019

Florida Home For Sale | Prime Gulf of Mexico Access | Water Enthusiast's Dream Home

2956 Buttonwood Key Ct, Saint James City, FL

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4 BEDROOMS |

You MUST SEE this Southwest Florida prime gulf access water enthusiast's dream home! You can navigate the globe from this home. Located minutes from the Gulf Of Mexico. A true fisherman's dream getaway, and a good investment property for rental revenue! Minutes from the beaches of Sanibel and Captiva. No bridges, deep canal, 2 boat lifts, one covered with a new metal roof. 2 Large bedrooms (Master and the 2nd Front Room) and 2 smaller bedrooms, overlooking the canals where we see Manatees and Dolphins daily! Large open living area layout overlooking the waterfront canal, with a beautiful kitchen including a large island, great for the chef in the family. Central vacuum and hurricane shutters. The upstairs screened in outdoor porch with Plexiglas windows has an incredible view of the intersecting canals and with steps leading to the downstairs screened porch. The 1st Floor is comprised of 2 bays, one that is over 50 feet deep and the other that is 42 feet deep, including a sizable workshop area with 9' ceilings. The neighborhood is really beautiful and the serenity of island life living hard to not find intoxicating! Call or text me for your showing appointment.

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Florida Complete Realty
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