Raw Land, Residential Lots
Another type of investment or retirement planning device that is prevalent in this area is the purchase of land. There are two common lot-buying scenarios: a) purchasing an improved lot (home on the property) as a “tear down,” and b) purchasing a vacant, unimproved lot.
Improved “Lots” & Tear Downs
With the supply of waterfront lots with good Gulf access shrinking, a common investment scenario is the purchase of an existing home on a great waterfront lot. These are in the category of sailboat (direct) access and close-to-the-river Gulf access (short distance but 1 bridge).
Homes on these lots were built in the 60’s or 70’s, have a small footprint (e.g., 1200 sq ft), and are out-dated in design and construction (example shown at right). The Yacht Club area of Cape Coral, for example, is a hot spot for these tear-down lot investments and are sold in the range of $1400,000 to $400,000+.
In some cases, the buyer purchases the lot with the immediate intention of tearing down the older home (sometimes at the seller’s expense) and building new. A longer-term strategy is purchasing this property, renting the home for a few years, and tearing down/rebuilding later.
Because the evidence is so strong that these waterfront lots will have high appreciation, a “buy and hold” strategy also works well, whether the “lot” is improved or unimproved. (Some investors flip the lot almost immediately, rather than hold.)
Vacant Land
There is tremendous growth extending out from the major city areas of Cape Coral, Fort Myers, Punta Gorda, and Bonita Springs. Lots are still available and appreciating nicely.
What is known as the “Burnt Store & NW Cape” area in the NW section of Cape Coral is a corridor that is seeing a great deal of investment from home builders, private parties, and commercial developers. Estero, south of Fort Myers is growing with planned communities around the Florida Gulf Coast University and the Southwest Florida International Airport.
Vacant land prices range from $5,000 in the outlying areas to $40,000 for “dry lots” to $400,000 for choice sailboat access waterfront lots.
Purchasing a Lot As A Part of Your Retirement Plan
Additionally, purchasing a vacant lot now, while prices are still low, is a great option for people who eventually plan to retire or move to the area. For example, buy a lot now with plans to build later, with the safety-net “plan B” option of being able to sell the land later if retirement or move plans change, all the while realizing appreciation on the property.
Sorry we are experiencing system issues. Please try again.
Quick Links to Vacant Land Real Estate
