It might seem a boring or less-than-glamorous investment, but land can really pay off.
If you are considering investing in real estate, why not invest in land? Our guest blogger, who also happens to be Nicole Stanbra’s dad, offers fantastic insight into land investment – in general, but also in Florida, as well as The Paradise Coast, Naples Florida.
Benefits of Land Investment in General
- They’re not making it anymore. Land is finite; is a limited supply with increasing demand commodity.
- Land is considered a tangible real asset and is a logical basis as an inflation hedge.
- Land cannot be lost or stolen nor carried away.
- Land gives you piece of mind and is the well behaved “golden child” of investing.
- Land is generally inexpensive to own with only property taxes being a fixed cost of ownership.
- Vacant land is a hands-off investment requiring no real maintenance or other additional investment to generate a profit – just time.
- Over the last 25 years residential raw land investment has averaged a
- 10.5 % return annually – not spectacular but steady and safe.
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Benefits of Investing in Florida Land
- Mild, sunny weather is a paramount plus for Florida.
- The State of Florida has no individual tax (1 of only 7 States) no state income tax, no estate or inheritance tax, and offers a homestead exemption of $50k off property value and a 2% annual cap on increases.
- Florida has the greatest inflow of domestic migration of the 50 states over the last few years and ranks in top ten over the last decade.
- The demographics favor the continued migration of retirees to Florida, as well as other sunbelt states, as the cost of living, weather, and social networks, along with numerous other beneficial factors favor the elderly.
- The migration to Florida should actually increase as baby boomers age out, and the sunbelt states of Texas and Arizona are more and more avoided as retirement locations.
- The migration to Florida should continue in this current environment as large cities throughout the country empty out due to high taxes, poor business environment, mismanagement, and an uptick in crime and safety issues.
- In my opinion, Florida is conducive to business growth and economic strength, and is and has been open for business.
- Ramifications of the pandemic allow remote work from anywhere, which will enhance the appeal of living in Florida.
- In general, millennials are leaving the city for single family homes which remain affordable although in great demand.
- Currently, homes on large lots that offer privacy and security are in demand.
- Florida was the first ‘right to work state’ and remains so, allowing for a market rate labor market and allowing businesses to pay up or down,according to the individual employee to keep a strong work ethos and labor force.
- Supply and demand issues favor an increase in property values near term.
- An obvious sprawl from the expensive coastal areas to inland areas where raw land still exists in great quantity is evident.
Benefits of Investing in Naples Florida Land
- Naples white sandy beaches and gentle gulf waters are considered some of the best in the country and a boater’s paradise.
- Arguably Naples offers some of the best weather in the country, at least for 9 months of the year, with temperatures ranging from 56F° to 89F° and rarely below 44F° or above 92F°.
- The natural environment, coastline, foliage, tropical animal species and uniqueness of Everglades National Park are national treasures.
- Naples has the lowest crime rate for a metropolitan area in the entire state of Florida.
- Naples residents have the lowest stress levels in the country based on 400,000 phone interviews throughout the country in 2018.
- Naples is ranked #1 for well-being in the USA for 4 years straight.
- Naples is ranked #1 for happiest, healthiest city for 3 years straight by Gallup poll (NY State is ranked 50th in Friendliness).
- Naples is ranked #1 as the best metro area for job growth by Forbes magazine.
- Naples is ranked #4 as best place to retire in USA by US News and World report and 4 of the top 5 destinations are located in Florida.
- Naples is ranked #1 as the best place to retire in Florida by SmartAsset, a NY financial technology firm, based on tax friendliness, medical, and social life.
- Naples is ranked #1 as the best destination for luxury travelers by USA Today.
- Naples is ranked #1 in golf course availability per capita in the country.
- Naples is ranked #1 on realtor.com’s list of the least polluted cities in America and is the cleanest city in the state of Florida.
- Naples offers a variety of intellectual and cultural activities including Naples Philharmonic, art museums, botanical gardens, and the renowned Revs Institute, which includes some of the rarest automobiles and race cars in the world.
- Naples offers an amazing amount of shopping choices, from mom and pop boutiques, to nearly every national chain store, all within several square miles, including several large outlet centers.
- Naples’ 5th Ave downtown area is a mecca for the ultra-rich and international travelers who wish to indulge in world class shopping and dining establishments.
- Naples offers luxury style living with numerous outdoor experiences including world renowned sanctuaries (Corkscrew Swamp, Ghost Orchid, and Big Cypress National Preserve) as well as parks, sports complexes and a plethora of fishing and water activities.
- Naples offers a diverse food experience with nearly 200 restaurants with the larger Collier County area offering 950 restaurants in total.
- Condé Nast has named Naples as one of the best Food cities in America for the last 2 years.
- The shift from 2nd home to primary residences in Naples, and Florida in general, is evident and will lead to large scale residential development and commercial enterprise growth.
- Naples home and land prices have lagged the national market until recently when number of sales more than doubled year over year and the median price increase was $100k+ over this period.
- A recent marker and trend in real estate markets this past year is that 70% of residential housing deals and 95% of small-scale raw land acquisitions have been purchased with cash assuring a strong financial attachment to the Naples property market.
- Property taxes in Naples, and Collier County in general, are relatively low in national comparison.
- As affluent as Naples may appear, the property tax rate is only 1.2% of the appraised value which is the third lowest tax rate in the state of Florida.
- Collier County ranked #6 nationally in best places to get a mortgage, showing minimal risk aversion and a strong appeal for lenders investing in the southwest area of Florida.
- At this time, Naples the cost of raw land, in particular the Golden Gate Estates area, is relatively inexpensive with the bonus factor that the minimum building lot is 2.25 acres offering amazing privacy and security.
- Naples’ Golden Gate Estate area has few restrictions and allows the building of a second home on the same lot at roughly ½ the size of the main residence, as well as extremely large out buildings and garages for business and recreational purposes, filling the current need of a spaced starved society.
- Population growth will force commercialization of the Golden Gate area.
- Trillions of dollars from stimulus will filter down to southwest Florida, with migration from all states flocking to this part of the country.
Are you looking for land for sale in Jupiter / Palm Beach Gardens Florida? Call on Nicole Stanbra, and The Stanbra Home Team, Jupiter Florida Realtors. Call us at (561) 468-3532.
