Posts Tagged ‘Investing in Naples Fl’

Compared to other investments, real estate still faired well

Tuesday, November 8th, 2011

Compared to other investments, real estate still performed well in the last decade despite loss of value in recent years. In a report recently released by RadarLogic, the housing market in the past decade, in spite of all of recent troubles, has still performed better in terms of an investment than other typical investments such as the stock market.

Highlights from the report are as follows:

  • The RPX Composite Price (RadarLogics home price index which tracks home prices in 25 major metropolitan areas) increased 56 percent from January 2000 to July 2011.
  • The Dow Jones Industrial Averageincreased by just12 percent over the same period…
  • …and the S&P 500 declined 8 percent.

 

Source:Radar Logic,Standard &Poor’s,Dow Jones &Company

  • Despite its boom and bust,the housing market performed about as well as the overall economy from 2000 to 2010.

 

Source:Radar Logic,U.S. Department of Commerce:Bureau of Economic Analysis

  • The housing market did not perform as well as markets for commodities such as gold. Gold prices were strengthened by the global financial crisis as investors fled to what they perceived as a safe investment.

 

Source:Radar Logic,U.S. Department of Labor:Bureau of Labor

 Looking to invest in Southwest Florida real estate? Click HERE to search for real estate for sale in Naples, Bonita Springs and Estero Florida.

John R. Wood – The Symbol of Local Knowledge.






Real estate in Southwest Florida is still a prime investment strategy

Tuesday, October 25th, 2011

Luxury real estate investors and buyers have shifted their priorities.  Instead of trying to grow their wealth, they are focused on wealth preservation – maintaining the wealth they have in today’s challenging and unpredictable investment market.    A Reuter’s article calls the resulting investment strategy a “catastrophe portfolio” which “allocates one third of the money to gold, one third to defensive and internationally diversified blue chip company shares, and a third to the debt of ultra-safe developed countries.”  

The third investment strategy is interesting.  A 2011 study by Knight Frank and Citi Private Bank reports that factors that encourage investors to seek out and buy the very best property in U.S cities, if anything, have become even more important.

This interest in quality real estate has been seen in Southwest Florida.  Many foreign buyers are looking at Southwest Florida, specifically Naples as a sound real estate investment.  Many of these buyers, like Canadians, are seeking vacation or second homes on the Paradise Coast. In addition, South American buyers also find Southwest Florida attractive and make up part of this buying group. 43% of these buyers agree that a desirable location is the most important factor influencing the purchase – and we all agree that Naples, Florida is a desirable location. Single-family homes are purchased the most with condos following closely behind and 62% of these sales are cash, which alleviates challenges with financing.

On a national level, the international market for U.S. residential property approached $82 billion on an annual basis. In serving the market, buyers rely heavily on contacts and reputation in obtaining clients.

If you’re interested in investing or buying real estate in Naples, Florida, be sure to find an agent that specializes in International clients.

To find an agent who specializes in International clients, click HERE.