We know it but We cannot Do it

Southwest Florida is currently a real estate buyers market. One year ago it was a sellers market. One year ago no one wanted to sell, today no one wants to buy. This is precisely what MAKES a buyers or seller market. To go against the trends, to make your own decisions instead of following the masses; it takes a special person; a courageous investor, a strong willed confident buyer. A well informed buyer, properly guided, will do very well in today's market.

We are indeed in a buyers market. This means there are deals to be made. This means that when buyers negotiate today they have the upper hand. They don't have to blink first, the seller will.

If you have been wanting to invest in Florida real estate but think you missed out when everyone else was buying: You are wrong. Just like you will be wrong one year from now and look back at what you should have bought.

At my staff meeting with our residential team, I asked for opinions on where some of the best deals can be had. I received this very thorough report from Deb Krikorian about Golf Course Homes:

In an effort to come up with the "best deals" on a golf course home, I compared some of the condo RESALES at local "bundled" golf course communities in the area. Bundled communities offer golf to home owners via an annual fee, rather than an initiation fee plus yearly fees. Here is what I found out:
Colonial Country Club/Ft. Myers - $175 to $203 per sq. ft. under air for 1209 and 1458 sq. ft. 2 bed/2 bath condos with carports. Fees are about $4000 a year which include the condo fee and the social fee/amenity fee in the non-golf, pay as you play section of the development. Pay as you play is $60 in the winter and $25 in the summer. If you live in the golf section of the development, the fees would be an additional $1614 a year. Taxes (city and county) at 2.3% of assessed value of a home costing $250,000 will be about $5000 a year plus the Community Development District Tax of $800.
Legends Golf & Country Club/So. Ft. Myers - $199 to $226 per sq. ft. under air for most 1170 sq. ft. and 1333 sq. ft. 2 bed/2 bath condos with carports. There were a few great deals for $183/sf - 2/2/carport/1333 sq. ft. Condo fee and social fee membership is about $3800 a year. If you are a golf member then your fees are an additional $2850 a year. Taxes here are assessed at 1.65% since there are county-only taxes. For a $250,000 home here the taxes would be approximately $3500. There is no CDD tax at this community.
Heritage Palms Country Club/Ft. Myers - $223 to $245 per sq. ft. under air for 1194 to 1232 sq. ft. 2 bed/2 bath condos with carport. Fees are about $5000 a year for the condo fee and full amenities package including golf. There are 2 18-hole courses here. Taxes here are city and county at 2.3% of assessed value. The least expensive condo here was priced at $274,000 for which the tax would be about $5400 annually. There is also a CDD tax at this community.
Lexington Country Club/So. Ft. Myers - $240 to 258 per sq. ft. under air for a 2/2 condo/carport with 1276 sq. ft. under air. This country club is closer to the beaches than the others; and typically, prices increase as you get closer to the beaches. Condo fee and master association fees/social fees are about $5900 a year in the non-golf section of the community. Taxes here are county only and would be about $3900 for a $275,000 condo. There is no CDD tax at this community.

And the winner is - Colonial Country Club. If you take into consideration location, value, and future appreciation, this is where you’ll get the best deal on a condo in a country club.

Thanks Deb - Great job! For info on these homes or to work with Deb call her are 239-277-9309 or email her at Deb@ma-realty.com

Maggie Morrisse also weighed in on this question. Maggie specializes in Bonita Beach and North Nalpes. She and Debbie, by the way, did not compare notes on the recommendations. Here is her two strong buys:

The Brooks in Bonita Springs and Colonial Country Club in Ft. Myers. Investors have overbought Colonial and are now eager to sell their units, and can't without lowering their prices. Bundled golf is incredibly cost-effective to a 2nd homeowner; who wants to pay $60-150,000 for a golf membership that they use only a couple of times a year? They and their friends & families still want to be able to play golf in the golf capital of the world on their vacation and they can still do so at a reasonable price - great bargains to be had in this particular area of real estate!!! Call Maggie at 239-425-0771 or email her at Maggie@ma-realty.com

I will weigh in on my picks:
For water front condos : Grand Isle at Burnt Store Marina or Paramount in Gulf Harbour
For entry Level near beach : Citadel in Bonita
For Office Condos : Brantley Commons
I have been immersed lately in Cyperlin Center and would love to share the latest.

We have been working on the amenities penthouse level and lobby designs. My vision with this building is very clear. If you live in luxury, you should work in it. The penthouse will be over 6000 square feet; A top of the line fitness center; All equipment with gorgeous views AND a built in TV; showers, lockers, massage room. A board room with all the accessories and fit with leather chairs, wireless projectors, white boards, and designed to not only impress, but to work. There will be a social room with a 62 inch plasma TV and lounge, a dining area, a bar with owners beverage lockers, ice machine, dishwasher, and vending machines.

Mike Sheeley presented the lobby design to us yesterday. Spectacular. Clean lines, marble, glass; Very cutting edge. This will be a building that owners and tenants alike will be proud to work in.

This building is being offered as office condos from 2200 sf and up. Prices start at $940,000. It takes 20 percent to buy. Closing will be in late 2007. Market America will not charge to locate a tenant. This is not a flip investment. This is a buy and hold, I expect cap rates to be about 7.5%.
As usual, keep your questions and comments coming.
Gregg

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