BY JENNIFER BEAR
Reporter Correspondent
The Reporter, Florida Keys Keynoter
July, 2003
Fattening your bank account by investing in real estate is a no-brainer
in the Florida Keys – if it has a roof and four walls, it’s
bound to appreciate.
Bill Wilkinson, a salesman at Re-Max Keys to the Key Real Estate
in Marathon, said the property market in the Keys is in such a state
that any halfway decent home in a good area will be a good investment.
“You can’t go too wrong here,” he said.
Wilkinson said property appreciates so rapidly in the Keys because
of the law of supply and demand.
The increasing number of people who want to live here and the limited
ability to build new homes causes property values to rise and rise
and rise.
“However, no matter how hot the market is, Wilkinson said “homebuyers
should purchase homes that are in good condition.”
And if you’re going to buy a house that’s less than
perfect, make sure you have the money to fix it.
He added that one of the most expensive things to correct in a home
is cracking concrete.
Deidre Praught, a Realtor with Florida Keys Realty in the Lower
Keys, also said homebuyers need to be realistic about their interest
and skills in regards to “fixer-uppers.”
She added that when buyers are looking at investing money in a property,
they should first rent a home in the area and get to know its amenities
and resources.
Praught said there are a number of pitfalls for homeowners to avoid
in order to get a good return on the money they invested in their
property.
First, don’t try to time the market. Waiting on buying a house
may mean missing out on a great investment opportunity.
Second, don’t count on the rental income to help pay the mortgage
expenses.
And third, buyers can increase appreciation quickly by purchasing
a house with poor landscaping and then transforming the property
with lush, new surroundings.
Brooks Clark, of Brooks Clark & Co. in Islamorada, said that
rather than buying fixer-uppers, people should buy the highest-caliber
house they can because then they’ll get the best appreciation.
“A buyer has to be enthusiastic and go in there with all the
gusto in the world,” she said.
Clark added that there are a number of characteristics to be on
the lookout for when trying to pick a house that will give you a
good return on your investment.
Anything with a view of anything on the waterfront will obviously
appreciate like crazy, Clark said.
Also, homes with good architectural lines are sure to be a worthy
investment. Home with big windows, a symmetrical look and tall ceilings
(9 feet or more) appreciate well.
Brooks added real estate needs time to appreciate so you shouldn’t
sell your home immediately after buying it.
She suggested homeowners hold on to their property for a year or
longer in order to get a bigger return on their investment.
