How Marketable Are New Sarasota Homes?
Having a home you could truly call your own would definitely be a great feeling. Owning a home in a community which offers all the amenities of modern living does wonders not only for your family’s comfort and well-being, but also for the marketability of your home. Sarasota offers a lot of extra amenities that make living here a truly well-rounded one; nice beaches, excellent seafront homes, well-maintained parks, marinas, yacht clubs and shopping districts.
All these further add up to the exhilaration of acquiring a new home. There are a lot of good reasons to owning a home of your own in Sarasota Florida, and most real estate analysts would say it’s probably one of the best investments you can make.
According to housing observers, homes in the Sarasota region appreciate in value at around five percent a year or more, and currently it has been considerably appreciating at more than 5%. Some say in a few years, the appreciation would get higher. The appreciation rates will generally vary depending on which neighborhood or district you are located.
However as a rule, a home owner could count on a 5%/year increase in value over the long run. For some however, a 5% per year hike may not seem like all that much. After all, stocks and bonds appreciate more than that. Most observers note that stocks have usually averaged an annual appreciation of closer to 8% or 9%. That would be great, but just what makes owning property in Sarasota profitable and easily marketable?
Generally, when one purchases a $200,000 house for example, you don’t pay cash for it, so you usually get a mortgage. Assuming that the down payment would be pegged at 20%, which let’s say would be the maximum you’d be asked for. That would reflect an investment of $40,000 of your personal money, and the rest of the home purchase price would be shouldered by the bank. To break it down, you bought a $200,000 asset by paying upfront only $40,000 of your money.
At an annual appreciation rate of 5%, your $200,000 Sarasota property would increase in value by an average of $10,000 annually. With that rate of appreciation, you probably would earn $10,000 on an investment of $40,000. This would mean that your annual return on investment would be around 25%. What makes this investment picture equally important is that you get to have a piece of good-valued real estate in beautiful Sarasota ,Florida.
Real estate prices in Sarasota have accelerated six years ago and are currently leading the nation in appreciation. Investors have flooded the region’s property markets, driving the market up along with the newcomers. The market however had cooled down 18 months ago as investors tried to dump their properties. Currently, many new real estate projects are on the drawing board including The Quay, Lakewood Ranch, Venetian Golf & River Club among dozens of other developments.
The Sarasota property market has mostly stabilized and experts say that growth will continue as around an estimated 70 million baby boomers seek to find warm and sunny locations to retire. Sarasota has always been one of the nicer areas in the state with the Longboat Key Club, however with the addition of a new Ritz-Carlton on the bay, Sarasota has reached international status.