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Here are the facts: |
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Thanks to the recent housing
downturn, we have a “golden” opportunity, as prices of quality residential real
estate have fallen and are at historical lows, and that buying now, where the boomers
are headed, is one of the best investments one could make. Sales of existing homes in Southwest
Florida are surging and
Cape Coral
in particular, is leading the way. |
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Southwest Florida, Ripe for
the
Contrarian Investor - Whereas momentum investors wait for a well established
and recognizable market trend before making a decision to buy or sell,
contrarian investors act directly opposite, as it is their strategy to capitalize
in opposition to the prevailing market trend. Warren Buffett is the classic contrarian investor.
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Acting in opposition to the "herd"
of buyers or sellers, contrarians believe the trend
is wrong, as they attempt to profit by investing
in a manner that differs from the conventional wisdom. A true contrarian "buys when everybody else is selling and sells
when everybody else is buying". Moreover, when buying close or
at least near the bottom, the profit can be considerable. History has proven time and again that real estate always rebounds
and
Florida,
and in particular, Southwest Florida, is ripe for the contrarian investor. |
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Today, Southwest Florida housing
and residential building lots are cheap but the market is beginning to turn up and
before the real estate cycle is again complete, prices will have again moved up
and possibly out of reach. This is probably the best buying opportunity in twenty
years and if you can muster a contrarian spirit, you will be rewarded. |
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Southwest Florida -
Many parts of Florida experienced dramatic price
swings attributed mostly to under
and over supply, marked by very high appreciation rates during the boom, only to see prices dive sharply over the past few years. A boom and bust environment was
experienced from roughly 2001 through 2006. Owners who bought in 2003 or before,
and sold no later than early 2006, were rewarded for their timing. Today, some Florida
locales are again at the median housing prices at 2002-2003 levels and the word is spreading.
As such, Southwest Florida and in particular
Cape Coral,
is beginning to see a resurgence
of buyers lured by the many bargains. In fact, while prices
are considerably less than the market top, existing home sales are
surging and could very well top our
peak year of 2005.
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As recently
reported in the May 24, 2008 edition of the Sarasota Herald Tribune, “In Fort Myers-Cape
Coral, the number of homes sold spiked 41 percent last month, with the median price
slipping by about $83,000 to $200,300. Moreover, “the large number of foreclosures
on the market has prompted many sellers to drop their
prices, so much so that it
is reasonably easy to find a three-bedroom, two-bath home with a pool for less than
$150,000.” These buyers understand that Florida, for a number of reasons, is now
and will always be a major retiree destination and it will not too long before prices
again move up consistent with demand. In short, Florida provides deeply discounted
properties for sale that are certain to see impressive price increases over the
pending real estate cycle. |
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