Real Estate Investing in Sarasota

Much has been made of the plight of the real estate investor in the last 12 months. Foreclosures, abandoned deposits, and unwanted multiple mortgages on properties they couldn't sell are scary facts. As with any investment, whether it be real estate or stocks, it is the short term thinker that often gets burned. When the risk pays off, its big money, and that was the allure of too many people investing over their heads. The risk, unfortunately, didn't pay off.

However, history is quite clear that real estate as a long term investment is reliable and profitable. As someone who has invested in real estate most of my adult life, I can vouch for the fact that over the long haul, real estate has been very good to me. And I encourage others to invest in real estate if possible. But do so with a level head and some basic rules -

1. Have long term view. If conditions are favorable in the short term and you want to sell, terrific! But if your plan is to hold the property for a set period of time, market fluctuations are not nearly as intimidating.

2. Fix your mortgage. Yes, the rates can be a bit higher, but there is comfort and safety in a set, known payment - especially in uncertain times. If your plan is to rent the property out, know the going rental rates and make sure you can afford the payment if the property does not rent out immediately.

3. Buy when no one else wants to. Right now, many people are afraid to invest, but leading edge investors are buying, and buying aggressively. An investor friend of mine says his only frustration is that he wishes he could buy up more. Prices are low, the boomers are coming over the next several years and many neighborhoods in Sarasota are enjoying a renaissance. Deals are out there for the asking.

4. Find a neighborhood with promise. In Sarasota, waterfront acreage is all but gone. But there are several communities that are undiscovered gems, still unbelievably priced for their proximity to the water. Sure, the homes are older but the neighborhoods are changing; renovation and rebuilding is occurring as we speak. And if you think I am talking in terms of "Sarasota affordability" think again - I know of a few homes under $250,000 in waterfront neighborhoods. Locations within walking distance to downtown, but in quiet neighborhoods, also have fantastic upside.

5. Be realistic. The days of "flipping" on the same day of closing and making $50,000 are gone now. But Sarasota is growing, boomers are retiring, and we live in a beautiful town. The market is returning to normal. Just don't expect double digit returns within weeks and you will be fine.

If real estate investment is of interest to you, give us a call. Don't wait until the market starts to rise again - as an investor, the time is now.
Regina Brassil, REALTOR