If you are in the market for a fabulous vacation home or a good long term investment, Sarasota has the perfect property for you. With interest rates near an all-time low, there are lots of properties to choose. Prices have taken a major drop and buyers have more leverage than sellers.
Tucked in the center of the Florida Sun coast, Sarasota runs down the west side of the state down to the beautiful waters of the Gulf of Mexico. Best known for its gorgeous sunny beaches, Sarasota has 35 miles of the World’s softest and Officially Whitest sand in the country. There are five barrier islands (Bird Key, Longboat Key, Casey Key, Lido Key, and Siesta Key) forming a shield to the coast, which in turn creates a sanctuary for wide variety of coastal neighborhoods and villages, bountiful with unique personality and culture.
Property prices in Sarasota have dipped so greatly that you can now achieve a positive cash flow or break even, when buying a property. In some areas of town the prices are back to prices from 2000. It has not been that way for quite a few years and won’t last forever.
Sarasota has a large selection of properties to offer, no matter what your lifestyle they have a condo or home to fit your needs. If you like golfing, Lakewood Ranch is the hub of several top quality golf courses. Are you a beach lover, there are loads of homes and condos available on the barrier islands. Into suburban living, there are many condo buildings to cater to your metropolitan lifestyle. And boating, there is the deep water of Bird Key.
Or maybe you are considering a property for a rental investment. With the all-time low costs in Sarasota and the low interest rates, this is the perfect time. If you are a smart investor, you can minimize your risks as far as appreciation by taking a long term perspective. You will not be out of pocket during this time, if the property appreciates over time. Your risk is also decreased because while you are holding on, the mortgage is being paid off by your tenants. Since the mortgage will be eventually be paid, there is very little financial danger.
There is no one who wants to purchase a property and have it be worth less in a year, so many buyers are waiting for fear that prices may go down. The Sarasota market will hit its lowest if it is not already there. You need to forget trying to make money in a hurry. When purchasing in Sarasota you need to think long term growth. With the increased return on investment, many investors have come back to the property market. This is a signal of the bottom of the property market.
Property speculators are of the opinion that housing prices are at the lowest when you can purchase a home with a mortgage and break even or maybe even create a positive cash flow. Ultimately, as prices drop a little more, returns improve attracting more investors to buy up the excess in homes available, which in turn will restart property appreciation and balance the market.
Will you correctly anticipate the bottom of the Sarasota property market?
It is likely that you wont but if you did is would just be luck. Some purchasers will buy above the bottom and some below but if you are near 5% of it, you are doing really well. I you plan on keeping your property for some time, then it is not nearly as important to hit that bottom.
With people make lots of money in a hurry, the property boom spoiled many investors. Before then, property was purchased with the expectation of holding it. That was different during the boom time when the expectation was to hold property for only a few months or many a couple of years. The time has come to get back to the old style of investing in property as long term. It takes time for good things to come.