Cape Coral Real Estate nowhere near recovery....... (loan, affordable houses)

[Compression]

Originally Posted by rikoshaprl

The homes I see on the market in SE Cape have fallen from over $500,000 in 2005 to about $200,000 now. If you find a home at this price that you like and can afford for your retirement who cares if the price goes down? Your property taxes will drop also making it even more affordable. You're not looking to sell anyway if it's your retirement home right?

Put that way.....of course it is perfectly acceptable. All depends on how one wishes to rationalize their purchase.

The traditional rationalization for a real estate purchase was, of course, that it would be regarded as an appreciating asset.

Perhaps a part of the "recession" (which I am becoming more comfortable calling a "transformation") taking place, is that we will henceforth consider real estate to be just another depreciating asset, like a car, that gets worn out, and needs replacement from time to time......

Yachtcare is just thinking out loud, again.......

[twobums]

Originally Posted by rikoshaprl
The homes I see on the market in SE Cape have fallen from over $500,000 in 2005 to about $200,000 now. If you find a home at this price that you like and can afford for your retirement who cares if the price goes down? Your property taxes will drop also making it even more affordable. You're not looking to sell anyway if it's your retirement home right?


This is all well & good, as long as:

* you keep your job
* insurance & taxes don't jump sky high
* a medical issue is a non-issue
* inflation does not rear its ugly head
* neighborhood doesn't go downhill
* special assessment does not apply to your home
* list goes on & on

[:)>]

Originally Posted by rikoshaprl

The homes I see on the market in SE Cape have fallen from over $500,000 in 2005 to about $200,000 now.

I'm starting to wonder about prices . . . I'm shopping (online for now) for gulf access property and all of the houses that meet my critera seem to start at $400k and go up eagerly from there. Maybe it's that it's the water or maybe it's the critera - or maybe I need a different agent?

My search criteria is 3/2/2 2000sq feet air conditioned - or larger, and gulf access that's not buried deep in the canal system where it takes an hour to get to open water.

We're taking a trip down there to look in person this summer. Being there in the summer will also tell me if the heat/humidity is going to be a problem.

Anyone know the mean prices for what I'm looking for?

[vman650]

One has to live somewhere and the alternative to owning is renting. If the monthly payment is in the same ballpark then owning is by far your best bet over time. Even when prices go down, you end up with something when you leave. When you rent, you are lucky to get your deposit back. Buying as a speculator is a horse of a different color.

[hiknapster]

Originally Posted by vman650

One has to live somewhere and the alternative to owning is renting. If the monthly payment is in the same ballpark then owning is by far your best bet over time. Even when prices go down, you end up with something when you leave. When you rent, you are lucky to get your deposit back. Buying as a speculator is a horse of a different color.

Wow. Here is going to be a first. I am a Realtor and I am here to tell you that is not true. For anywhere.

Yes, certainly run the numbers, but make sure to put taxes, property insurance and upkeep in there.

And if prices go down too low, such as you bought for $500,000 and it is now $275,000, you will almost walk away with nothing or stay in there and become physically sick every time you make your mortgage payment.

So no. Sometimes it is better to rent.

But if you make extremely intelligent decisions based on business and not on emotion, and you have luck on your side, then yes, owning a home is, above all, a personally satisfying experience. Yes.

[yoko]

Originally Posted by yachtcare

consider real estate to be just another depreciating asset

In a declining market:

As a renter you can accumulate more wealth than owning a house.
A renter saves money on mortages, taxes, maintenance and is not affected by falling house prices.
By investing in stocks, bonds and other financial market investments, renters' equity (money) increases much more than investing in housing.

[Arglo]

Having family in Florida we have always thought of retiring there. Cape Coral seemed like the ideal place to retire. Having read about all the trouble concerns us. We are two years from retiring and are concerned about the housing in Cape Coral, although it seems many places in Florida are suffering similar decline. Any suggestions as to where we should look? East or west coast? We are hoping to buy something around 150 thou - and now there seems to be an abundance of houses in that price range.

[rikoshaprl]

If you buy a home in CC that went from $500,000 down to $200,000, how much lower can it go? To $150,000? Who cares. Enjoy your retirement. Leave a little less to your heirs.

Arglo, for $150 you probably won't get a good gulf access home. But you could get a home across the street from gulf access. Those homes are usually nice and keep their value a little better so the neighborhood has a tendency to remain stable. Plus you can make friends with your neighbor and go on his boat (don't forget to bring the beer). Or you can get a home on a freshwater canal with a nice view.

[Arglo]

Thank you for answering. I certainly would bring the beer!! I gather the assessments are for city water and sewer - it seems like many of the homes have assessments that need to be paid - how much does that run?

[hiknapster]

I think it is about $20,000, but that's a guess. It's been mentioned before on here, if you want to do a search you'll find it.

My mil just bought a house across the street from gulf access in the se section. Older, well-established area. Beautiful landscaping and pool. It was under $150,000. That is very nice deal. The home was built in 1966.