Are There Any Great Deals Left In Southwest Florida? Would You Pay The Same Price As The Original Purchaser Did 30 Years Ago?
There is a weekly column in the Bonita Banner, a publication that has reported the news in Bonita Springs for many years and is now owned by the Naples Daily News. Using the Banner’s archives, the column looks back three decades at life in Southwest Florida and a portion of the article each week looks at real estate prices. The following information appears in this week’s (7/3/13) column.
THIRTY YEARS AGO
REAL ESTATE: On Arroyal Road, Pollard & Hedrich Realty was marketing the Polynesian Villa condominiums, with prices ranging from $58,900 to $66,900. Rentals were available for $425 a month.
Fast forward to today, 30 years later. A Fannie Mae Owned Polynesian Villas unit just recently went under contract with a list price of $62,900.
The big difference in today and 30 years ago is that rentals in Polynesian Villas now go for $850.00 per month. Taking into account taxes and condo fees, this 2 bed, 2 bath villa will easily be able to generate a return on investment of over 10%. This doesn’t even take into account appreciation. A Polynesian Villa unit sold for $195,000 at the height of the market in February of 2006-just a little over seven years ago.
While no one expects prices to approach 2006 levels anytime soon, even a 5% increase in price each year, over the next five years (prices are up in Bonita Springs over 20% in the past year), it would not be unreasonable to conservatively estimate that a unit like this will be selling for over $75,000 in 2018. This would produce an annualized return, minus upkeep, of over 15%-not bad by today’s investment standards.
If you’re an investor or a future homeowner looking for a good value-and a great deal-call Jim today at 239-273-3833. There are some great opportunities at what are still historically low prices. At least in one case-a 1983 price.