Is Cape Coral A Good Investment?

Definition of "Is Cape Coral a good investment?"

The answer to this question depends on what kind of investment you are referring to. The city of Cape Coral, FL was the original master-plan investment. It started out as the Rosen brothers decided to invest in a retirement community. The community turned into a city and it continues to expand to this day.

It grew to over 189,000 residents and it’s still a buyer’s market. Recently there was a foreclosure crisis that took over the real estate market in Cape Coral, FL, which had an after effect to increase demand for rental properties. Many long time residents of Cape Coral decided to change their status from owners to renters.

However, the city has a lower cost of living than the national average which attracts many people to remain here or relocate. This also makes it a great place to retire especially if you like waterfront living as housing costs are affordable and for all budgets.

Rental demands

The growing rental market demand provides good investment opportunities throughout Cape Coral and real estate investors should consider purchasing or they could look into building homes or condominium units. For the time being those investments will bring back revenues as rentals and in the long term, the housing market will stabilize increasing the purchasing powers of the residents.

This rental demand, however, doesn’t only come from current residents, but from snowbirds and seasonal visitors as well. The great year-round weather ensures capacity throughout the year in Cape Coral and very little necessity for maintaining the properties, especially for condominiums. Get in touch with real estate agents in Cape Coral FL, and see if there are any opportunities currently on the market.

Lessons from the past.

Similarly to the rest of Florida, Cape Coral is affected whenever there is a crisis, and the affordable real estate market takes a rough plunge. It already happened during the 2008 economic crisis. It is advisable to take into account that if another crisis hits the economy, the real estate market is historically incapable of standing tall. Prices dropped drastically between 2007 and 2008 by 51% after the last economic downturn, but the silver lining to any area that is a vacation destination is that the market is capable of getting back to its feet.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Questions

Popular Real Estate Glossary Terms

A company that is terminated within 3 years. According to the tax law, a gain arising from the sale or liquidation of such a business is considered ordinary income to the individual ...

An account into which payment is made for particular expenses to assure that money will be available. An example is a special account the homeowner's attorney establishes for advance ...

Also called functional depreciation. Loss of value that results from improvements that are inadequate, outdated, overly adequate, or improperly designed for today's needs. May be curable or ...

Device that cuts off an electric circuit when the current becomes to strong. ...

Most typically, the definition of real estate spread implies the difference between the price offered by a home buyer and the initial amount asked for by the seller of real property. It ...

Structure built into the water from the land providing a facility for boats to tie up. A dock will often provide utility access ...

Restoring real property to an improved state. The restoration is usually needed because the property's condition has worsened. ...

A method of brick construction where the bricks are laid with their sides facing outward. ...

Return before taxes on the capital invested in real estate property. ...