Investors who have followed a well-devised investment strategy will find themselves entering their golden years with a healthy nest egg and a monthly income that will allow them to enjoy their retirement with complete control of their future. Diversifying your investments among different market sectors is the key to building your real estate portfolio security. As you gain experience and knowledge in each market sector, you can move on to the next and create a bright future for yourself and your loved ones. However, no matter what asset you invest in, it pays to avoid costly errors by seeking the advice of professionals. Today we will explore two fantastic investment opportunities, so read on as we explore five differences between owning land and single-family properties in Fort Myers.
Cost
Raw or undeveloped land is a relatively low-cost asset that investors can often attain without a loan.
Developed properties with single-family homes present a different financial landscape compared to raw land. The investment cost for single-family homes is significantly higher in Fort Myers due to the added value of the construction itself. This requires a much larger upfront capital outlay. However, for those seeking a potentially quicker return, single-family homes can offer advantages. Unlike raw land, developed properties can be rented out immediately or flipped for a profit relatively soon after purchase.
The expertise of professional investors in Fort Myers can be invaluable when navigating this market. Companies like Core Real Estate Properties have a deep understanding of Fort Myers‘s unique dynamics. They stay informed about current property values, anticipated zoning changes, future growth plans, and emerging trends that might affect the housing market. This insider knowledge can be a game-changer for investors seeking to make sound decisions and maximize their returns.
Maintenance
Land itself is a relatively passive investment when it comes to maintenance. Unlike a building, it won’t require regular upkeep like painting, roof repairs, or appliance replacements. The most you might need to do is mow grass or clear brush on undeveloped land, depending on the location and terrain. This translates to significantly lower ongoing costs compared to single-family rental properties. In Fort Myers, for instance, landlords can expect to spend roughly 1% of the property’s value each year on maintenance. This difference in upkeep expenses is a major advantage for investors considering land ownership as it allows them to enjoy a more consistent return on their investment.
Taxes
In most areas, vacant land is subject to property taxes, but the good news is that these taxes are usually significantly lower than what you’d pay on a single-family home in the same city. This is because property taxes are based on the assessed value of the land, which considers the potential for development. While vacant land might have value, it typically won’t be valued as highly as a property with a house on it. This difference in valuation translates to a smaller tax bill for vacant land compared to a developed property.
This highlights a key distinction between owning vacant land and a single-family home in Fort Myers. While both types of property have associated taxes, the tax burden for vacant land is generally much lighter. This can be a significant advantage for those who are holding onto land for future development or investment purposes.
Income
The monthly income that your investment can generate is another significant difference between owning land and single-family properties in Fort Myers. While the cash flow generated from vacant land can cause its source of income, single-family properties draw the attention of investors because of the higher potential level of monthly cash flow they can generate. The monthly receipts are nearly pure profit once free and clear of a mortgage, and with proper planning, this phase of ownership can coincide with your entry into living life as an entirely passive real estate investor. It’s easy to see how important it is for investors to build a competent and efficient team over the years. One they can rely on, like the professional investors at Core Real Estate Properties, with the team to back up your dream.
Competition
The competition among buyers is another of the differences between owning land and single-family properties in Fort Myers. The majority of buyers on the market are looking for four ready to move into single-family homes, making competition for raw or vacant land much less intense. Whether you’re buying land or jumping into a bidding war for a single-family property, when you work with a professional investor like those at Core Real Estate Properties, you’ll benefit from their high-level skills and ability to maintain a professional demeanor despite the most emotionally charged outbursts from sellers during negotiations.
Core Real Estate Properties‘s highly experienced professional investors at Core Real Estate Properties can help you explore the differences between owning land and single-family properties in Fort Myers. When you work with Core Real Estate Properties, you bring a full-service team of pros from across the industry ready to move swiftly on potential investments. So working with one of our professional investors when you’re buying land or single-family properties will give you the peace of mind that working with seasoned investors like those at Core Real Estate Properties can provide.
Contact Core Real Estate Properties at 239-360-3176.